{"data":{"id":"us-ky/krs-355.12-104","jurisdiction":"us-ky","citation":"KRS 355.12-104","heading":"Rights in controllable account, controllable electronic record, and","body":"controllable payment intangible.\n(1) This section applies to the acquisition and purchase of rights in a controllable\naccount or controllable payment intangible, inc luding the rights and benefits under\nsubsections (3), (4), (5), (7), and (8) of this section of a purchaser and qualifying\npurchaser, in the same manner this section applies to a controllable electronic\nrecord.\n(2) To determine whether a purchaser of a con trollable account or a controllable\npayment intangible is a qualifying purchaser, the purchaser obtains control of the\naccount or payment intangible if it obtains control of the controllable electronic\nrecord that evidences the account or payment intangible.\n(3) Except as provided in this section, law other than this article determines whether a\nperson acquires a right in a controllable electronic record and the right the person\nacquires.\n(4) A purchaser of a controllable electronic record acquires all righ ts in the controllable\nelectronic record that the transferor had or had power to transfer, except that a\npurchaser of a limited interest in a controllable electronic record acquires rights\nonly to the extent of the interest purchased.\n(5) A qualifying purc haser acquires its rights in the controllable electronic record free\nof a claim of a property right in the controllable electronic record.\n(6) Except as provided in subsections (1) and (5) of this section for a controllable\naccount and a controllable payme nt intangible or law other than this article, a\nqualifying purchaser takes a right to payment, right to performance, or other interest\nin property evidenced by the controllable electronic record subject to a claim of a\nproperty right in the right to paymen t, right to performance, or other interest in\nproperty.\n(7) An action may not be asserted against a qualifying purchaser based on both a\npurchase by the qualifying purchaser of a controllable electronic record and a claim\nof a property right in another con trollable electronic record, whether the action is\nframed in conversion, replevin, constructive trust, equitable lien, or other theory.\n(8) Filing of a financing statement under Article 9 of this chapter is not notice of a\nclaim of a property right in a controllable electronic record.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55721","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:49Z","sha256":"9a02b135740b4ed197c327c8b2c8e52ccc1e1a18000117d74ce4a918367474fe","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.12-103","next":"us-ky/krs-355.12-105"},"notice":"GroundRules: Original legal text. Not legal advice."}