KRS 355.8-203: Staleness as notice of defect or defense.

After an act or event, other than a call that has been revoked, creating a right to

immediate performance of the principal obligation represented by a certificated security

or setting a date on or after which the security is to be presented or surrendered for

redemption or exchange, a purchaser is charged with notice of any defect in its issue or

defense of the issuer, if the act or event:

(1) Requires the payment of money, the delivery of a certificated security, the

registration of transfer of an uncertif icated security, or any of them on presentation

or surrender of the security certificate, the money or security is available on the date

set for payment or exchange, and the purchaser takes the security more than one

year after that date; or

(2) Is not covered by subsection (1) of this section and the purchaser takes the security

more than two years after the date set for surrender or presentation or the date on

which performance became due.