{"data":{"id":"us-ky/krs-286.3-874","jurisdiction":"us-ky","citation":"KRS 286.3-874","heading":"Rights of receiver under participation agreements.","body":"The granting of a participation in a loan or other asset shall, unless otherwise expressly so\nstated in the participation agreement or certificate, constitute a sale and assignment of,\nand transfer of ownership in, a proportionate interest in the loan or o ther asset and in all\nsecurity interests, guaranties, and other rights granted under the loan agreement, the note,\nand all documents of any nature related to the loan or other asset, whether such\ndocuments are contemporaneously or thereafter executed.  The  perfection of a security\ninterest in personal property or the filing of a lien on real property by the selling bank\nshall be deemed perfection or filing on behalf of each participant, whether or not such\nparticipant shall be a participant at the time of such perfection or filing.  Upon the closing\nof a bank under KRS 286.3 -854, the receivership estate shall have no interest in such\nproportionate interests in the loan or other asset, or in any security therefor or any rights\ntherein, therefore, sold a parti cipant, such rights passing, to the extent such rights have\nnot previously passed to the participant without further action on the part of the selling\nbank or participant.  The receiver shall have no greater rights under any participation\nagreement than did the closed bank immediately prior to its closing.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14618","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:11Z","sha256":"e40cf485993be6ecdfc01ed12e07da646739926c8455bdaa327a3e2dd976651d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.3-872","next":"us-ky/krs-286.3-876"},"notice":"GroundRules: Original legal text. Not legal advice."}