{"data":{"id":"us-ky/krs-355.2-401","jurisdiction":"us-ky","citation":"KRS 355.2-401","heading":"Passing of title -- Reservation for security -- Limited application of this","body":"section.\nEach provision of this article with regard to the rights, obligations and remedies of the\nseller, the buyer, purchasers or other third parties applies irrespective of title to the goods\nexcept where the provision refers to such title. Insofar as situations are not covered by the\nother provisions of this article and matters concerning title become material the following\nrules apply:\n(1) Title to goods cannot pass under a contract for sale prior to their identification to the\ncontract (KRS 355.2-501), and unless otherwise explicitly agreed the buyer acquires\nby their identification a special property as limited by this chapter. Any retention or\nreservation by the seller  of the title (property) in goods shipped or delivered to the\nbuyer is limited in effect to a reservation of a security interest. Subject to these\nprovisions and to the provisions of the article on secured transactions (Article 9),\ntitle to goods passes fr om the seller to the buyer in any manner and on any\nconditions explicitly agreed on by the parties.\n(2) Unless otherwise explicitly agreed title passes to the buyer at the time and place at\nwhich the seller completes his performance with reference to the p hysical delivery\nof the goods, despite any reservation of a security interest and even though a\ndocument of title is to be delivered at a different time or place; and in particular and\ndespite any reservation of a security interest by the bill of lading\n(a) if the contract requires or authorizes the seller to send the goods to the buyer\nbut does not require him to deliver them at destination, title passes to the\nbuyer at the time and place of shipment; but\n(b) if the contract requires delivery at destination, title passes on tender there.\n(3) Unless otherwise explicitly agreed where delivery is to be made without moving the\ngoods,\n(a) if the seller is to deliver a document of title, title passes at the time when and\nthe place where he delivers such documents; or\n(b) if the goods are at the time of contracting already identified and no documents\nare to be delivered, title passes at the time and place of contracting.\n(4) A rejection or other refusal by the buyer to receive or retain the goods, whether or\nnot justified, or a justified revocation of acceptance revests title to the goods in the\nseller. Such revesting occurs by operation of law and is not a \"sale.\"","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33289","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:42Z","sha256":"df9d5cc13421a67976d4b3997482dc145459bfc42685be5208463ab2f741141f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.2-328","next":"us-ky/krs-355.2-402"},"notice":"GroundRules: Original legal text. Not legal advice."}