KRS 355.2-702: Seller's remedies on discovery of buyer's insolvency.

(1) Where the seller discovers the buyer to be insolvent he may refuse delivery except

for cash including payment for all goods theretofore delivered under the contract,

and stop delivery under this article (KRS 355.2-705).

(2) Where the seller discovers that the buyer has received goods on credit while

insolvent he may reclaim the goods upon demand made within ten (10) days after

the receipt, but if misrepresentation of solvency has been made to the particular

seller in writing within three (3) months before d elivery the ten (10) day limitation

does not apply. Except as provided in this subsection the seller may not base a right

to reclaim goods on the buyer's fraudulent or innocent misrepresentation of

solvency or of intent to pay.

(3) The seller's right to reclaim under subsection (2) is subject to the rights of a buyer in

ordinary course or other good faith purchaser under this article (KRS 355.2 -403).

Successful reclamation of goods excludes all other remedies with respect to them.