KRS 355.9-338: Priority of security interest or agricultural lien perfected by filed

financing statement providing certain incorrect information.

If a security interest or agricultural lien is perfected by a filed financing statement

providing information descri bed in KRS 355.9 -516(2)(e) which is incorrect at the time

the financing statement is filed:

(1) The security interest or agricultural lien is subordinate to a conflicting perfected

security interest in the collateral to the extent that the holder of the co nflicting

security interest gives value in reasonable reliance upon the incorrect information;

and

(2) A purchaser, other than a secured party, of the collateral takes free of the security

interest or agricultural lien to the extent that, in reasonable rel iance upon the

incorrect information, the purchaser gives value and, in the case of tangible chattel

paper, documents, goods, instruments, or a security certificate, receives delivery of

the collateral.