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KRS 355.9-314

Perfection by control

Known as the Uniform Commercial Code

The act spans §§ 355–355 (686 sections).

Effective: January 1, 2025 History: Amended 2024 Ky

(1) A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, investment property, or letter-of-credit rights may be perfected by control of the collateral under KRS 355.7-106, 355.9-104, 355.9-1051, 355.9-106, 355.9- 107, or 355.9-1071.

(2) A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, or letter-of-credit rights is perfected by control under KRS 355.7-106, 355.9-104, 355.9-1051, 355.9-107, or 355.9-1071 not earlier than the time the secured party obtains control and remains perfected by control only while the secured party retains control.

(3) A security interest in investment property is perfected by control under KRS 355.9- 106 not earlier than the time the secured party obtains control and remains perfected by control until:

(a) The secured party does not have control; and (b) One (1) of the following occurs:

1. If the collateral is a certificated security, the debtor has or acquires possession of the security certificate;

2. If the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner; or 3. If the collateral is a security entitlement, the debtor is or becomes the entitlement holder.

Official source: Kentucky General Assembly. Reproduced from public-domain Kentucky statutes; confirm against the official source for the current text. Not legal advice.