Public-domain · open source

KRS 355.9-327

Priority of security interests in deposit account

Known as the Uniform Commercial Code

The act spans §§ 355.10-101 to 355.9-809 (686 sections).

Applied in 1 court decision — leading case Kentucky Highlands Investment Corp. v. Bank of Corbin, Inc. (2006)

Most recently applied in Kentucky Highlands Investment Corp. v. Bank of Corbin, Inc. (September 2006)

Effective: July 1, 2001 History: Created 2000 Ky

The following rules govern priority among conflicting security interests in the same deposit account:

(1) A security interest held by a secured party having control of the deposit account under KRS 355.9-104 has priority over a conflicting security interest held by a secured party that does not have control.

(2) Except as otherwise provided in subsections (3) and (4) of this section, security interests perfected by control under KRS 355.9-314 rank according to priority in time of obtaining control.

(3) Except as otherwise provided in subsection (4) of this section, a security interest held by the bank with which the deposit account is maintained has priority over a conflicting security interest held by another secured party.

(4) A security interest perfected by control under KRS 355.9-104(1)(c) has priority over a security interest held by the bank with which the deposit account is maintained.

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