KRS 355.9-607: Collection and enforcement by secured party.

(1) If so agreed, and in any event after default, a secured party:

(a) May notify an account debtor or other person obligated on collateral to make

payment or otherwise render performance to or for the benefit of the secured

party;

(b) May take any proceeds to which the secured party is entitled under KRS

355.9-315;

(c) May enforce the obligations of an account debtor or other person obligated on

collateral and exercise the rights of the debtor with respect to the obligation of

the account debtor or other perso n obligated on collateral to make payment or

otherwise render performance to the debtor, and with respect to any property

that secures the obligations of the account debtor or other person obligated on

the collateral;

(d) If it holds a security interest in a deposit account perfected by control under

KRS 355.9 -104(1)(a), may apply the balance of the deposit account to the

obligation secured by the deposit account; and

(e) If it holds a security interest in a deposit account perfected by control under

KRS 355.9-104(1)(b) or (c), may instruct the bank to pay the balance of the

deposit account to or for the benefit of the secured party.

(2) If necessary to enable a secured party to exercise under subsection (1)(c) of this

section the right of a debtor to enforc e a mortgage nonjudicially, the secured party

may record in the office in which a record of the mortgage is recorded:

(a) A copy of the security agreement that creates or provides for a security interest

in the obligation secured by the mortgage; and

(b) The secured party's sworn affidavit in recordable form stating that:

1. A default has occurred with respect to the obligation secured by the

mortgage; and

2. The secured party is entitled to enforce the mortgage nonjudicially.

(3) A secured party shall proc eed in a commercially reasonable manner if the secured

party:

(a) Undertakes to collect from or enforce an obligation of an account debtor or

other person obligated on collateral; and

(b) Is entitled to charge back uncollected collateral or otherwise to full or limited

recourse against the debtor or a secondary obligor.

(4) A secured party may deduct from the collections made pursuant to subsection (3) of

this section reasonable expenses of collection and enforcement, including

reasonable attorney's fees and legal expenses incurred by the secured party.

(5) This section does not determine whether an account debtor, bank, or other person

obligated on collateral owes a duty to a secured party.