KRS 355.9-312: Perfection of security interests in chattel paper, controllable accounts,

controllable electronic records, controllable payment intangibles, deposit

accounts, negotiable documents, goods covered by documents, instruments,

investment property, l etter-of-credit rights, and money -- Perfection by

permissive filing -- Temporary perfection without filing or transfer of

possession.

(1) A security interest in chattel paper, controllable accounts, controllable electronic

records, controllabl e payment intangibles, instruments, investment property, or

negotiable documents may be perfected by filing.

(2) Except as otherwise provided in KRS 355.9-315(3) and (4) for proceeds:

(a) A security interest in a deposit account may be perfected only by co ntrol

under KRS 355.9-314;

(b) And except as otherwise provided in KRS 355.9 -308(4), a security interest in

a letter -of-credit right may be perfected only by control under KRS 355.9 -

314;

(c) A security interest in tangible money may be perfected only by th e secured

party's taking possession under KRS 355.9-313; and

(d) A security interest in electronic money may be perfected only by control

under KRS 355.9-314.

(3) While goods are in the possession of a bailee that has issued a negotiable document

covering the goods:

(a) A security interest in the goods may be perfected by perfecting a security

interest in the document; and

(b) A security interest perfected in the document has priority over any security

interest that becomes perfected in the goods by another method during that

time.

(4) While goods are in the possession of a bailee that has issued a nonnegotiable

document covering the goods, a security interest in the goods may be perfected by:

(a) Issuance of a document in the name of the secured party;

(b) The bailee's receipt of notification of the secured party's interest; or

(c) Filing as to the goods.

(5) A security interest in certificated securities, negotiable documents, or instruments is

perfected without filing or the taking of possession or control for a period of twenty

(20) days from the time it attaches to the extent that it arises for new value given

under a signed security agreement.

(6) A perfected security interest in a negotiable d ocument or goods in possession of a

bailee, other than one that has issued a negotiable document for the goods, remains

perfected for twenty (20) days without filing if the secured party makes available to

the debtor the goods or documents representing the goods for the purpose of:

(a) Ultimate sale or exchange; or

(b) Loading, unloading, storing, shipping, transshipping, manufacturing,

processing, or otherwise dealing with them in a manner preliminary to their

sale or exchange.

(7) A perfected security int erest in a certificated security or instrument remains

perfected for twenty (20) days without filing if the secured party delivers the

security certificate or instrument to the debtor for the purpose of:

(a) Ultimate sale or exchange; or

(b) Presentation, collection, enforcement, renewal, or registration of transfer.

(8) After the twenty (20) day period specified in subsection (5), (6), or (7) of this

section expires, perfection depends upon compliance with this article.