What is an exception to secured transactions under Article 9?

The choice regarding assignments of consumer deposit accounts is identified as an exception to secured transactions under Article 9 because Article 9 of the Uniform Commercial Code, which governs secured transactions, primarily focuses on personal property and certain types of collateral. Specifically, it does not apply to assignments of deposit accounts that are held by consumers, which are instead subject to different regulations and protections.

This distinction is significant because the UCC Article 9 aims to facilitate and regulate security interests in personal property, but it explicitly excludes certain types of transactions, especially those that involve consumer deposit accounts. This is in line with the overall regulatory framework, which seeks to protect consumers by separating consumer-oriented transactions from typical commercial secured transactions.

In contrast, secured loans on real estate, commercial loans to businesses, and retail sales agreements are not exceptions to Article 9, as they typically involve the securing of interests in personal property or tangible assets, which are covered under the provisions of the UCC.