Last Updated July 23, 2012
Enactments through the 2012 Extraordinary Session
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Terms & Conditions
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KRS Chapter 355.09
Terms & Conditions
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Part 1. General Provisions
.101 Short title.
.102 Definitions and index of definitions.
.103 Purchase-money security interest -- Application of payments -- Burden of establishing.
.104 Control of deposit account.
.105 Control of electronic chattel paper.
.106 Control of investment property.
.107 Control of letter-of-credit right.
.108 Sufficiency of description.
Subpart 2. Applicability of Article
.110 Security interests arising under Article 2 or 2A.
.111 Repealed, 1992.
.112 Repealed, 2000.
.113 Repealed, 2000.
.114 Repealed, 2000.
.115 Repealed, 2000.
.116 Repealed, 2000.
Part 2. Effectiveness of Security Agreement -- Attachment of
.201 General effectiveness of security agreement.
.202 Title to collateral immaterial.
.203 Attachment and enforceability of security interest -- Proceeds -- Supporting obligations -- Formal requisites.
.204 After-acquired property -- Future advances.
.205 Use or disposition of collateral permissible.
.206 Security interest arising in purchase or delivery of financial asset.
Subpart 2. Rights and Duties
.207 Rights and duties of secured party having possession or control of collateral.
.208 Additional duties of secured party having control of collateral.
.209 Duties of secured party if account debtor has been notified of assignment.
.210 Request for accounting -- Request regarding list of collateral or statement of account.
Part 3. Perfection and Priority
.301 Law governing perfection and priority of security interests.
.302 Law governing perfection and priority of agricultural liens.
.303 Law governing perfection and priority of security interests in goods covered by a certificate of title.
.304 Law governing perfection and priority of security interests in deposit accounts.
.305 Law governing perfection and priority of security interests in investment property.
.306 Law governing perfection and priority of security interests in letter-of-credit rights.
.307 Location of debtor.
Subpart 2. Perfection
.308 When security interest or agricultural lien is perfected -- Continuity of perfection.
.309 Security interest perfected upon attachment.
.310 When filing required to perfect security interest or agricultural lien -- Security interests and agricultural liens to which filing provisions do not apply.
.311 Perfection of security interests in property subject to certain statutes, regulations, and treaties.
.312 Perfection of security interests in chattel paper, deposit accounts, documents, goods covered by documents, instruments, investment property, letter-of-credit rights, and money -- Perfection by permissive filing -- Temporary perfection without filing or transfer of possession.
.313 When possession by or delivery to secured party perfects security interest without filing.
.314 Perfection by control.
.315 Secured party's rights on disposition of collateral and in proceeds.
.316 Continued perfection of security interest following change in governing law.
Subpart 3. Priority
.317 Interests that take priority over or take free of security interest or agricultural lien.
.318 No interest retained in right to payment that is sold -- Rights and title of seller of account or chattel paper with respect to creditors and purchasers.
.319 Rights and title of consignee with respect to creditors and purchasers.
.320 Buyer of goods.
.321 Licensee of general intangible and lessee of goods in ordinary course of business.
.322 Priorities among conflicting security interests in and agricultural liens on same collateral.
.323 Future advances.
.324 Priority of purchase-money security interests.
.325 Priority of security interests in transferred collateral.
.326 Priority of security interests created by new debtor.
.327 Priority of security interests in deposit account.
.328 Priority of security interests in investment property.
.329 Priority of security interests in letter-of-credit right.
.330 Priority of purchaser of chattel paper or instrument.
.331 Priority of rights of purchasers of instruments, documents, and securities under other articles -- Priority of interests in financial assets and security entitlements under Article 8.
.332 Transfer of money -- Transfer of funds from deposit account.
.333 Priority of certain liens arising by operation of law.
.334 Priority of security interests in fixtures and crops.
.336 Commingled goods.
.337 Priority of security interests in goods covered by certificate of title.
.338 Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information.
.339 Priority subject to subordination.
Subpart 4. Rights of Bank
.340 Effectiveness of right of recoupment or set-off against deposit account.
.341 Bank's rights and duties with respect to deposit account.
.342 Bank's right to refuse to enter into or disclose existence of control agreement.
Part 4. Rights of Third Parties
.401 Alienability of debtor's rights.
.401A Repealed, 2000.
.402 Secured party not obligated on contract of debtor or in tort.
.403 Agreement not to assert defenses against assignee.
.404 Rights acquired by assignee -- Claims and defenses against assignee.
.405 Modification of assigned contract.
.406 Discharge of account debtor -- Notification of assignment -- Identification and proof of assignment -- Restrictions on assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective.
.407 Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest.
.408 Restrictions on assignment of promissory notes, health-care-insurance receivables, and certain general intangibles ineffective.
.409 Restrictions on assignment of letter-of-credit rights ineffective.
Part 5. Filing
.501 Filing office.
.502 Contents of financing statement -- Record of mortgage as financing statement -- Time of filing financing statement.
.503 Name of debtor and secured party.
.504 Indication of collateral.
.505 Filing and compliance with other statutes and treaties for consignments, leases, other bailments, and other transactions.
.506 Effect of errors or omissions.
.507 Effect of certain events on effectiveness of financing statement.
.508 Effectiveness of financing statement if new debtor becomes bound by security agreement.
.509 Persons entitled to file a record.
.510 Effectiveness of filed record.
.511 Secured party of record.
.512 Amendment of financing statement.
.513 Termination statement.
.513A Termination of wrongfully filed record -- Reinstatement.
.514 Assignment of powers of secured party of record.
.515 Duration and effectiveness of financing statement -- Effect of lapsed financing statement.
.516 What constitutes filing -- Effectiveness of filing.
.516A Administrative rejection of unauthorized records.
.517 Effect of indexing errors.
.518 Claim concerning inaccurate or wrongfully filed record.
Subpart 2. Duties and Operation of Filing Office
.519 Numbering, maintaining, and indexing records -- Communicating information provided in records.
.520 Acceptance and refusal to accept record.
.521 Uniform form of written financing statement and amendment.
.522 Maintenance and destruction of records.
.523 Information from filing office -- Sale or license of records.
.524 Delay by filing office.
.526 Filing-office rules.
.527 Duty to report.
Part 6. Default
.601 Rights after default -- Judicial enforcement -- Consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes.
.602 Waiver and variance of rights and duties.
.603 Agreement on standards concerning rights and duties.
.604 Procedure if security agreement covers real property or fixtures.
.605 Unknown debtor or secondary obligor.
.606 Time of default for agricultural lien.
.607 Collection and enforcement by secured party.
.608 Application of proceeds of collection or enforcement -- Liability for deficiency and right to surplus.
.609 Secured party's right to take possession after default.
.610 Disposition of collateral after default.
.611 Notification before disposition of collateral.
.612 Timeliness of notification before disposition of collateral.
.613 Contents and form of notification before disposition of collateral: General.
.614 Contents and form of notification before disposition of collateral: Consumer-goods transaction.
.615 Application of proceeds of disposition -- Liability for deficiency and right to surplus.
.616 Explanation of calculation of surplus or deficiency.
.617 Rights of transferee of collateral.
.618 Rights and duties of certain secondary obligors.
.619 Transfer of record or legal title.
.620 Acceptance of collateral in full or partial satisfaction of obligation -- Compulsory disposition of collateral.
.621 Notification of proposal to accept collateral.
.622 Effect of acceptance of collateral.
.623 Right to redeem collateral.
Subpart 2. Noncompliance with Article
.625 Remedies for secured party's failure to comply with article.
.626 Action in which deficiency or surplus is in issue.
.627 Determination of whether conduct was commercially reasonable.
.628 Nonliability and limitation on liability of secured party -- Liability of secondary obligor.
Part 7. Transition
.701 Effective date.
.702 Savings clause.
.703 Security interest perfected before effective date.
.704 Security interest unperfected before effective date.
.705 Effectiveness of action taken before effective date.
.706 When initial financing statement suffices to continue effectiveness of financing statement -- Minor errors or omissions.
.707 Amendment of pre-effective-date financing statement.
.708 Persons entitled to file initial financing statement or continuation statement.
.710 Duties of county clerk.
Part 8. Transition Provisions for 2012 Amendments
.801 Effective date of KRS 355.9-801 to 355.9-809. (Effective July 1, 2013)
.802 Application. (Effective July 1, 2013)
.803 Security interest perfected before effective date. (Effective July 1, 2013)
.804 Security interest unperfected before effective date. (Effective July 1, 2013)
.805 Effectiveness of action taken before effective date. (Effective July 1, 2013)
.806 When initial financing statement suffices to continue effectiveness of financing statement. (Effective July 1, 2013)
.807 Amendment of pre-effective-date financing statement. (Effective July 1, 2013)
.808 Person entitled to file initial financing statement or continuation statement. (Effective July 1, 2013)
.809 Priority. (Effective July 1, 2013)