355.2-402 Rights of seller's creditors against sold goods.
(1)
(2)
(3)
Except as provided in subsections (2) and (3), rights of unsecured creditors of the
seller with respect to goods which have been identified to a contract for sale are
subject to the buyer's rights to recover the goods under this article (KRS 355.2-502
and 355.2-716).
A creditor of the seller may treat a sale or an identification of goods to a contract for
sale as void if as against him a retention of possession by the seller is fraudulent
under any rule of law of the state where the goods are situated, except that retention
of possession in good faith and current course of trade by a merchant-seller for a
commercially reasonable time after a sale or identification is not fraudulent.
Nothing in this article shall be deemed to impair the rights of creditors of the seller
(a) under the provisions of the article on secured transactions (Article 9); or
(b) where identification to the contract or delivery is made not in current course of
trade but in satisfaction of or as security for a pre-existing claim for money,
security or the like and is made under circumstances which under any rule of
law of the state where the goods are situated would apart from this article
constitute the transaction a fraudulent transfer or voidable preference.
Effective: July 1, 1960
History: Created 1958 Ky. Acts ch. 77, sec. 2-402, effective July 1, 1960.
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