KRS 355.9-507: Effect of certain events on effectiveness of financing statement.

(1) A filed financing statement remains effective with respect to collateral that is sold,

exchanged, leased, licensed, or otherwise disposed of and in which a security

interest or agricultural lien continues, even if the secured party knows of or consents

to the disposition.

(2) Except as otherwise provided in subsection (3) of this section and KRS 355.9-508, a

financing statement is not rendered ineffective if, after the financing statement is

filed, the information provided in the financing statement becomes seriously

misleading under KRS 355.9-506.

(3) If the name that a filed financing statement provides for a debtor becomes

insufficient as the name of the debtor under KRS 355.9 -503(1) so that the financing

statement becomes seriously misleading under KRS 355.9-506:

(a) The financing statement is effective to perfect a security interest in collateral

acquired by the debtor before, or within four (4) months after, the filed

financing statement becomes seriously misleading; and

(b) The financing statement is n ot effective to perfect a security interest in

collateral acquired by the debtor more than four (4) months after the filed

financing statement becomes seriously misleading, unless an amendment to

the financing statement which renders the financing statemen t not seriously

misleading is filed within four (4) months after the filed financing statement

becomes seriously misleading.