KRS 355.2-402: Rights of seller's creditors against sold goods.

(1) Except as provided in subsections (2) and (3), rights of unsecured creditors of the

seller with respect to goods which have been identified to a contract for sale are

subject to the buyer's rights to recover the goods under this article (KRS 355.2 -502

and 355.2-716).

(2) A creditor of the seller may treat a sale or an identification of goods to a contract for

sale as void if as against him a retention of possession by the seller is fraudulent

under any rule of law of the state where the goods are situated, except that retention

of possession in good faith and current course of trade by a merchant -seller for a

commercially reasonable time after a sale or identification is not fraudulent.

(3) Nothing in this article shall be deemed to impair the rights of creditors of the seller

(a) under the provisions of the article on secured transactions (Article 9); or

(b) where identification to the contract or delivery is made not in current course of

trade but in satisfaction of or as security for a pre -existing claim f or money,

security or the like and is made under circumstances which under any rule of

law of the state where the goods are situated would apart from this article

constitute the transaction a fraudulent transfer or voidable preference.