There is a newer version of the Kentucky Revised Statutes
2022
2021
2020
2019
2018
Other previous versions
View our newest version here

2016 Kentucky Revised Statutes
CHAPTER 355 - UNIFORM COMMERCIAL CODE
Article 9 - Secured Transactions -- Sales of Accounts, Contract Rights, and Chattel Paper
355.9-205 Use or disposition of collateral permissible.

KY Rev Stat § 355.9-205 (2016) What's This?

Download as PDF 355.9-205 Use or disposition of collateral permissible. (1) (2) 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 otherwise deal with collateral; 3. Accept the return of collateral or make repossessions; or 4. Use, commingle, or dispose of proceeds; or (b) The secured party fails to require the debtor to account for proceeds or replace collateral. This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party. Effective: July 1, 2001 History: Repealed and reenacted 2000 Ky. Acts ch. 408, sec. 35, effective July 1, 2001. -- Amended 1986 Ky. Acts ch. 118, sec. 62, effective July 1, 1987. -- Created 1958 Ky. Acts ch. 77, sec. 9-205, effective July 1, 1960.

Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.