The Note for Loan status "Exception" was originally a status that was incurred after using an old offline circulation software; it has not been in use since 2011.
All items that had that status in Koha have had that status changed to "Unavailable" and the description of the status has been changed to "DO NOT USE". In January 2016 SCLS staff will be deleting this status after all of the 2015 Year End processes and reports have been completed.