Which item is NOT a typical category of collateral under Article 9?

Which item is NOT a typical category of collateral under Article 9?

• A. Real estate.
• B. Equipment.
• C. Accounts.
• D. Inventory.

Answer: (A)

UCC Article 9 covers security interests in personal property—things that aren’t land or buildings. Lenders file a UCC-1 to perfect interests in assets like equipment, accounts (money owed to the debtor), and inventory because these are movable or assignable assets that can serve as collateral in a loan. Real estate, by contrast, is land and buildings and is governed by real property law. Lenders secure real estate with mortgages or deeds of trust recorded in property records, not through Article 9 filings. So real estate isn’t a typical Article 9 collateral category, while equipment, accounts, and inventory are.

UCC Article 9 covers security interests in personal property—things that aren’t land or buildings. Lenders file a UCC-1 to perfect interests in assets like equipment, accounts (money owed to the debtor), and inventory because these are movable or assignable assets that can serve as collateral in a loan. Real estate, by contrast, is land and buildings and is governed by real property law. Lenders secure real estate with mortgages or deeds of trust recorded in property records, not through Article 9 filings. So real estate isn’t a typical Article 9 collateral category, while equipment, accounts, and inventory are.