2006 Kentucky Revised Statutes - Article 9 Secured Transactions -- Sales of Accounts, Contract Rights, and Chattel Paper

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

• .109   Scope.
• .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• .111   Repealed, 1992.
• .112   Repealed, 2000.
• .113   Repealed, 2000.
• .114   Repealed, 2000.
• .115   Repealed, 2000.
• .116   Repealed, 2000.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 Security Interest -- Rights of Parties to Security Agreement

• .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.
• .335   Accessions.
• .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.
• .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.
• .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.
• .525   Fees.
• .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.
• .624   Waiver.

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.
• .709   Priority.
• .710   Duties of county clerk.