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KRS 355.9-332

Transfer of money -- Transfer of funds from deposit account

Known as the Uniform Commercial Code

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

Applied in 2 court decisions — leading case Kentucky Highlands Investment Corp. v. Bank of Corbin, Inc. (2006)

Most recently applied in Flener v. Alexander (In Re Alexander) (June 2010)

Effective: January 1, 2025 History: Amended 2024 Ky

(1) A transferee of tangible money takes the money free of a security interest if the transferee receives possession of the money without acting in collusion with the debtor in violating the rights of the secured party.

(2) A transferee of funds from a deposit account takes the funds free of a security interest in the deposit account if the transferee receives the funds without acting in collusion with the debtor in violating the rights of the secured party.

(3) A transferee of electronic money takes the money free of a security interest if the transferee obtains control of the money without acting in collusion with the debtor in violating the rights of the secured party.

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