KRS 355.2A-308: Special rights of creditors.

(1) A creditor of a lessor in possession of goods subject to a lease contract may treat the

lease contract as void if, as against the creditor, retention of possession by the lessor

is fraudulent under any statute or rule of law, but retention of possession in good

faith and current course of trade by the lessor for a commercially reasonable time

after the lease contract becomes enforceable is not fraudulent.

(2) Nothing in this article impairs the rights of creditors of a lessor if the lease contract:

(a) Becomes enforceable, not in current course of trade but in satisfaction of or as

security for a pre-existing claim for money, security, or the like; and

(b) Is made under circumstances which under any statute or rule of law apart from

this article would consti tute the transaction a fraudulent transfer or voidable

preference.

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

sale as void if, as against the creditor, retention of possession by the seller is

fraudulent under any statute or rule of law, but retention of possession of the goods

pursuant to a lease contract entered into by the seller as lessee and the buyer as

lessor in connection with the sale or identification of the goods is not fraudulent if

the buyer bought for value and in good faith.