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355.9-335 Accessions.
(1)
(2)
(3)
(4)
(5)
(6)
A security interest may be created in an accession and continues in collateral that
becomes an accession.
If a security interest is perfected when the collateral becomes an accession, the
security interest remains perfected in the collateral.
Except as otherwise provided in subsection (4) of this section, the other provisions
of this part of this article determine the priority of a security interest in an accession.
A security interest in an accession is subordinate to a security interest in the whole
which is perfected by compliance with the requirements of a certificate-of-title
statute under KRS 355.9-311(2).
After default, subject to Part 6 of this article, a secured party may remove an
accession from other goods if the security interest in the accession has priority over
the claims of every person having an interest in the whole.
A secured party that removes an accession from other goods under subsection (5) of
this section shall promptly reimburse any holder of a security interest or other lien
on, or owner of, the whole or of the other goods, other than the debtor, for the cost
of repair of any physical injury to the whole or the other goods. The secured party
need not reimburse the holder or owner for any diminution in value of the whole or
the other goods caused by the absence of the accession removed or by any necessity
for replacing it. A person entitled to reimbursement may refuse permission to
remove until the secured party gives adequate assurance for the performance of the
obligation to reimburse.
Effective: July 1, 2001
History: Created 2000 Ky. Acts ch. 408, sec. 75, effective July 1, 2001.
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