KRS 355.9-337: Priority of security interests in goods covered by certificate of title.

If, while a security interest in goods is perfected by any method under the law of another

jurisdiction, this Commonwealth issues a certificate of title that does not show that the

goods are subject to the security interest or contain a statement that they may be subject to

security interests not shown on the certificate:

(1) A buyer of the goods, other than a person in the business of selling goods of that

kind, takes free of the security interest if the buyer gives value and receives delivery

of the goods after issuance of the certificate and without knowledge of the security

interest; and

(2) The security interest is subordinate to a conflicting security interest in the goods that

attaches, and is perfected under KRS 355.9 -311(2), after issuance of the ce rtificate

and without the conflicting secured party's knowledge of the security interest.