Title XXIX, Commerce and Trade

Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this article with regard to rights and obligations apply whether title to collateral is in the secured party or the debtor.

Supporting obligations -- Formal requisites. (1) A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment. (2) Except as otherwise provided in subsectio…

(1) Except as otherwise provided in subsection (2) of this section, a security agreement may create or provide for a security interest in after-acquired collateral. (2) (a) Subject to paragraph (b) of this subsection, a security interest does not attach under a term constituting …

(1) A security interest is not invalid or fraudulent against creditors solely because: (a) The debtor has the right or ability to: 1. Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods; 2. Collect, compromise, enforce, or otherwis…

(1) A security interest in favor of a securities intermediary attaches to a person's security entitlement if: (a) The person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities in…

collateral. (1) Except as otherwise provided in subsection (4) of this section: (a) A secured party shall use reasonable care in the custody and preservation of collateral in the secured party's possession; and (b) In the case of chattel paper or an instrument, reasonable care in…

(1) This section applies to cases in which: (a) There is no outstanding secured obligation; and (b) The secured party is not committed to make advances, incur obligations, or otherwise give value. (2) Within ten (10) days after receiving a signed demand by the debtor: (a) A secur…

assignment. (1) Except as otherwise provided in subsection (3) of this section, this section applies if: (a) There is no outstanding secured obligation; and (b) The secured party is not committed to make advances, incur obligations, or otherwise give value. (2) Within ten (10) da…

statement of account. (1) In this section: (a) "Request" means a record of a type described in paragraph (b), (c), or (d) of this subsection. (b) "Request for an accounting" means a record signed by a debtor requesting that the recipient provide an accounting of the unpaid obliga…

Except as otherwise provided in KRS 355.9-303 to 355.9-3062, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral: (1) Except as otherwise provided in this section, while a deb…

While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of an agricultural lien on the farm products.

covered by a certificate of title. (1) This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate of title the goods are covered and the goods or the debtor. (2) Goods become covered by …

accounts. (1) The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank even if the transaction does not bear any relation to the bank's jurisdiction…

property. (1) Except as otherwise provided in subsection (3) of this section, the following rules apply: (a) While a security certificate is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priori…

credit rights. (1) Subject to subsection (3) of this section, the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a letter-of-credit right if the …

paper. (1) Except as provided in subsection (4) of this section, if chattel paper is evidenced only by an authoritative electronic copy of the chattel paper or is evidenced by an authoritative electronic copy and an authoritative tangible copy, the local law of the chattel paper'…

controllable accounts, controllable electronic records, and controllable payment intangibles. (1) Except as provided in subsection (2) of this section, the local law of the controllable electronic record's jurisdiction specified in KRS 355.12-107(3) and (4) governs perfection, th…

(1) In this section, "place of business" means a place where a debtor conducts its affairs. (2) Except as otherwise provided in this section, the following rules determine a debtor's location: (a) A debtor who is an individual is located at the individual's principal residence. (…

perfection. (1) Except as otherwise provided in this section and KRS 355.9-309, a security interest is perfected if it has attached and all of the applicable requirements for perfection in KRS 355.9-310 to 355.9-316 have been satisfied. A security interest is perfected when it at…

The following security interests are perfected when they attach: (1) A purchase-money security interest in consumer goods, except as otherwise provided in KRS 355.9-311(2) with respect to consumer goods that are subject to a statute or treaty described in KRS 355.9-311(1); (2) An…

Security interests and agricultural liens to which filing provisions do not apply. (1) Except as otherwise provided in subsection (2) of this section and KRS 355.9- 312(2), a financing statement must be filed to perfect all security interests and agricultural liens. (2) The filin…

regulations, and treaties. (1) Except as otherwise provided in subsection (4) of this section, the filing of a financing statement is not necessary or effective to perfect a security interest in property subject to: (a) A statute, regulation, or treaty of the United States whose …

controllable electronic records, controllable payment intangibles, deposit accounts, negotiable documents, goods covered by documents, instruments, investment property, letter-of-credit rights, and money -- Perfection by permissive filing -- Temporary perfection without filing or…

interest without filing. (1) (a) Except as otherwise provided in subsection (2) of this section, a secured party may perfect a security interest in goods, instruments, negotiable tangible documents, or tangible money by taking possession of the collateral. (b) A secured party may…

(1) A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, investment property, or letter-of-credit rights may be perfected by control of the collateral under KRS 3…

(1) A secured party may perfect a security interest in chattel paper by taking possession of each authoritative tangible copy of the record evidencing the chattel paper and obtaining control of each authoritative electronic copy of the electronic record evidencing the chattel pap…

(1) Except as otherwise provided in this article and in KRS 355.2-403(2): (a) A security interest or agricultural lien continues in collateral notwithstanding sale, lease, license, exchange, or other disposition thereof unless the secured party authorized the disposition free of …

law. (1) A security interest perfected pursuant to the law of the jurisdiction designated in KRS 355.9-301(1), 355.9-305(3), 355.9-3061(4), or 355.9-3062(2) remains perfected until the earliest of: (a) The time perfection would have ceased under the law of that jurisdiction; (b) …

agricultural lien. (1) A security interest or agricultural lien is subordinate to the rights of: (a) A person entitled to priority under KRS 355.9-322; and (b) Except as otherwise provided in subsection (5) of this section, a person that becomes a lien creditor before the earlier…

seller of account or chattel paper with respect to creditors and purchasers. (1) A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain a legal or equitable interest in the collateral sold. (2) For purposes of determining the righ…

(1) Except as otherwise provided in subsection (2) of this section, for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee is deemed to have rights and titl…

(1) Except as otherwise provided in subsection (5) of this section, a buyer in ordinary course of business, other than a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer's seller, even if the security …

business. (1) In this section, "licensee in ordinary course of business" means a person that becomes a licensee of a general intangible in good faith, without knowledge that the license violates the rights of another person in the general intangible, and in the ordinary course fr…

on same collateral. (1) Except as otherwise provided in this section, priority among conflicting security interests and agricultural liens in the same collateral is determined according to the following rules: (a) Conflicting perfected security interests and agricultural liens ra…

(1) Except as otherwise provided in subsection (3) of this section, for purposes of determining the priority of a perfected security interest under KRS 355.9-322(1)(a), perfection of the security interest dates from the time an advance is made to the extent that the security inte…

(1) Except as otherwise provided in subsection (7) of this section, a perfected purchase- money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided in KRS 355.9-327, a …

(1) Except as otherwise provided in subsection (2) of this section, a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if: (a) The debtor acquired the collateral subject to the security interest created b…

(1) Subject to subsection (2) of this section, a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and perfected by a filed financing statement that would be ineffective to perfect the security interest but for the appl…

electronic record, and controllable payment intangible. A security interest in a controllable account, controllable electronic record, or controllable payment intangible held by a secured party having control of the account, electronic record, or payment intangible has priority o…

The following rules govern priority among conflicting security interests in the same deposit account: (1) A security interest held by a secured party having control of the deposit account under KRS 355.9-104 has priority over a conflicting security interest held by a secured part…

The following rules govern priority among conflicting security interests in the same investment property: (1) A security interest held by a secured party having control of investment property under KRS 355.9-106 has priority over a security interest held by a secured party that d…

The following rules govern priority among conflicting security interests in the same letter-of-credit right: (1) A security interest held by a secured party having control of the letter-of-credit right under KRS 355.9-107 has priority to the extent of its control over a conflicti…

(1) A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merely as proceeds of inventory subject to a security interest if: (a) In good faith and in the ordinary course of the purchaser's business, the purchaser gives new value,…

electronic records, controllable payment tangibles, documents, instruments, and securities under other articles -- Priority of interests in financial assets and security entitlements and protection against assertion of claim under Articles 8 and 12. (1) This article does not limi…

(1) A transferee of tangible money takes the money free of a security interest if the transferee receives possession of the money without acting in collusion with the debtor in violating the rights of the secured party. (2) A transferee of funds from a deposit account takes the f…

(1) In this section, "possessory lien" means an interest, other than a security interest or an agricultural lien: (a) Which secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person's…