KRS 367.610: Assignee of rights of seller or lessor subject to defenses of buyer against

seller or lessor -- Exception.

(1) With respect to any consumer credit contract taken in connection with any purchase

money loan or any sale or lease of goods or services othe r than credit card

transaction, an assignee of the rights of the seller or lessor is subject to all defenses

of the buyer against the seller or lessor arising out of the sale or lease

notwithstanding an agreement to the contrary, but the assignee's liabili ty under this

section may not exceed the amount owing to the assignee at the time the defense is

asserted against the assignee. Rights of the buyer or lessee under this section can

only be asserted as a matter of defense to or set off against a claim by the assignee.

(2) This section shall not apply to any consumer credit contract taken in connection

with any purchase money loan or any sale or lease of goods or services which is in

compliance with any trade regulation issued or promulgated by the Federal Tr ade

Commission or any regulation of the Board of Governors of the Federal Reserve

System or similar federal agency having jurisdiction relating to preservation of

consumer claims and defenses in credit transactions.