KRS 355.9-331: Priority of rights of purchasers of controllable accounts, controllable

electronic records, controllable payment tangibles, documents, instruments,

and securities under other articles -- Priority of interests in financial assets and

security entitlements and protection against assertion of claim under Articles 8

and 12.

(1) This article does not limit the rights of a holder in due course of a negotiable

instrument, a holder to which a negotiable document of title has been duly

negotiated, a protected purchaser of a security, or a qualifying purchaser of a

controllable account, controllable electronic record, or controllable payment

intangible. These holders or purchasers take priority over an earlier security

interest, even if perfected , to the extent provided in Articles 3, 7, 8, and 12 of this

chapter.

(2) This article does not limit the rights of or impose liability on a person to the extent

that the person is protected against the assertion of a claim under Article 8 or 12 of

this chapter.

(3) Filing under this article does not constitute notice of a claim or defense to the

holders, or purchasers, or persons described in subsections (1) and (2) of this

section.