KRS 355.2A-310: Lessor's and lessee's rights when goods become accessions.

(1) Goods are "accessions" when they are installed in or affixed to other goods.

(2) The interest of a lessor or a lessee under a lease contract entered into before the

goods became accessions is superior to all interests in the whole except as stated in

subsection (4).

(3) The interest of a lessor or a lessee under a lease contract entered into at the time or

after the goods became accessions is superior to all subsequently acquired interests

in the whole except as stated in subsection (4) but is subordinate t o interests in the

whole existing at the time the lease contract was made unless the holders of such

interests in the whole have in writing consented to the lease or disclaimed an

interest in the goods as part of the whole.

(4) The interest of a lessor or a lessee under a lease contract described in subsection (2)

or (3) is subordinate to the interest of:

(a) A buyer in the ordinary course of business or a lessee in the ordinary course of

business of any interest in the whole acquired after the goods became

accessions; or

(b) A creditor with a security interest in the whole perfected before the lease

contract was made to the extent that the creditor makes subsequent advances

without knowledge of the lease contract.

(5) When under subsections (2) or (3) and (4) a lessor or a lessee of accessions holds an

interest that is superior to all interests in the whole, the lessor or the lessee may:

(a) On default, expiration, termination, or cancellation of the lease contract by the

other party but subject to the provi sions of the lease contract and this article;

or

(b) If necessary to enforce his other rights and remedies under this article;

remove the goods from the whole, free and clear of all interests in the whole, but he

must reimburse any holder of an interest in the whole who is not the lessee and who

has not otherwise agreed for the cost of repair of any physical injury but not for any

diminution in value of the whole caused by the absence of the goods removed or by

any necessity for replacing them. A person en titled to reimbursement may refuse

permission to remove until the party seeking removal gives adequate security for the

performance of this obligation.