KRS 355.9-604: Procedure if security agreement covers real property or fixtures.

(1) If a security agreement covers both personal and real property, a secured party may

proceed:

(a) Under this part of this article as to the personal property without prejudicing

any rights with respect to the real property; or

(b) As to both the personal pr operty and the real property in accordance with the

rights with respect to the real property, in which case the other provisions of

this part of this article do not apply.

(2) Subject to subsection (3) of this section, if a security agreement covers goods that

are or become fixtures, a secured party may proceed:

(a) Under this part of this article; or

(b) In accordance with the rights with respect to real property, in which case the

other provisions of this part of this article do not apply.

(3) Subject to the other provisions of this part of this article, if a secured party holding a

security interest in fixtures has priority over all owners and encumbrances of the

real property, the secured party, after default, may remove the collateral from the

real property.

(4) A secured party that removes collateral shall promptly reimburse any encumbrancer

or owner of the real property, other than the debtor, for the cost of repair of any

physical injury caused by the removal. The secured party need not reimburse the

encumbrancer or owner for any diminution in value of the real property caused by

the absence of the goods removed or by any necessity of replacing them. A person

entitled to reimbursement may refuse permission to remove until the secured party

gives adequate assurance for the performance of the obligation to reimburse.