KRS 355.9-208: Additional duties of secured party having control of collateral.

(1) This section applies to cases in which:

(a) There is no outstanding secured obligation; and

(b) The secured party is not committed to make advances, incur obligati ons, or

otherwise give value.

(2) Within ten (10) days after receiving a signed demand by the debtor:

(a) A secured party having control of a deposit account under KRS 355.9 -

104(1)(b) shall send to the bank with which the deposit account is maintained

a signed record that releases the bank from any further obligation to comply

with instructions originated by the secured party;

(b) A secured party having control of a deposit account under KRS 355.9 -

104(1)(c) shall:

1. Pay the debtor the balance on deposit in the deposit account; or

2. Transfer the balance on deposit into a deposit account in the debtor's

name;

(c) A secured party, other than a buyer, having control under KRS 355.9 -105 of

an authoritative electronic copy of a record evidencing chattel paper shall

transfer control of the electronic copy to the debtor or a person designated by

the debtor;

(d) A secured party having control of investment property under KRS 355.8 -

106(4)(b) or 355.9 -106(2) shall send to the securities intermediary or

commodity intermediary with which the security entitlement or commodity

contract is maintained a signed record that releases the securities intermediary

or commodity intermediary from any further obligation to comply with

entitlement orders or directions originated by the secured party;

(e) A secured party having control of a letter-of-credit right under KRS 355.9-107

shall sen d to each person having an unfulfilled obligation to pay or deliver

proceeds of the letter of credit to the secured party a signed release from any

further obligation to pay or deliver proceeds of the letter of credit to the

secured party;

(f) A secured pa rty having control under KRS 355.7 -106 of an authoritative

electronic copy of an electronic document shall transfer control of the

electronic copy to the debtor or a person designated by the debtor;

(g) A secured party having control under KRS 355.9 -1051 o f electronic money

shall transfer control of the electronic copy to the debtor or a person

designated by the debtor; and

(h) A secured party having control under KRS 355.12 -105 of a controllable

electronic record, other than a buyer of a controllable accou nt or controllable

payment intangible evidenced by the controllable electronic record, shall

transfer control of the controllable electronic record to the debtor or a person

designated by the debtor.