KRS 355.9-201: General effectiveness of security agreement.

(1) Except as otherwise provided in this chapter, a security agreement is effective

according to its terms between the parties, against purchasers of the collateral, and

against creditors.

(2) A transaction subject to this article is subject to any applicable rule of law, statute,

or regulation that establishes a different rule for consumers.

(3) In case of conflict between this article and a rule of law, statute, or regulation

described in subsection (2) of this section, the rule of law, statute, or regulation

controls. Failure to comply with a statute or regulation described in subsection (2)

of this section has only the effect the statute or regulation specifies.

(4) This article does not:

(a) Validate any rate, charge, agreement, or practice that violates a rule of law,

statute, or regulation described in subsection (2) of this section; or

(b) Extend the application of the rule of law, statute, or regulation to a transaction

not otherwise subject to it.