KRS 355.8-302: Rights of purchaser.

(1) Except as otherwise provided in subsections (2) and (3) of this section, a purchaser

of a certificated or uncertificated security acquires all rights in the security that the

transferor had or had power to transfer.

(2) A purchaser of a limited interest ac quires rights only to the extent of the interest

purchased.

(3) A purchaser of a certificated security who as a previous holder had notice of an

adverse claim does not improve its position by taking from a protected purchaser.