{"data":{"id":"us-ky/krs-355.2a-303","jurisdiction":"us-ky","citation":"KRS 355.2A-303","heading":"Alienability of party's interest under lease contract or of lessor's","body":"residual interest in goods -- Delegation of performance -- Transfer of rights.\n(1) As used in this section, \"creation of a security interest\" includes the sale of a lease\ncontract that is subject to Article 9, Secured Transactions, by reason of KRS 355.9 -\n109(1)(c).\n(2) Except as provided in subsection (3) of this section and KRS 355.9-407, a provision\nin a lease agreement which:\n(a) Prohibits the voluntary or involuntary transfer, including a transfer by sale,\nsublease, creation, or enforcement of a security interest, or attachment, levy,\nor other judicial process, of an interest of a party under the lease contract or of\nthe lessor's residual interest in the goods; or\n(b) Makes such a transfer an event of default,\ngives rise to the rights and remedies provided in subsection (4) of this section, but a\ntransfer that is prohibited or is an event of default under the lease agreement is\notherwise effective.\n(3) A provision in a lease agreement which:\n(a) Prohibits a transfer of a right to damages for default with respect to the whole\nlease contract or of a right to payment arising out of the transferor's due\nperformance of the transferor's entire obligation; or\n(b) Makes such a transfer an event of default,\nis not enforceable, and such a transfer is not a transfer that materially impairs the\nprospect of obtaining return performance by, materially changes the duty of, or\nmaterially increases the burden or risk imposed on, the other party t o the lease\ncontract within the purview of subsection (5).\n(4) Subject to subsection (3) of this section and KRS 355.9-407:\n(a) If a transfer is made which is made an event of default under a lease\nagreement, the party to the lease contract not making the transfer, unless that\nparty waives the default or otherwise agrees, has the rights and remedies\ndescribed in KRS 355.2A-501(2);\n(b) If paragraph (a) is not applicable and if a transfer is made that:\n1. Is prohibited under a lease agreement; or\n2. Materially impairs the prospect of obtaining return performance by,\nmaterially changes the duty of, or materially increases the burden or risk\nimposed on, the other party to the lease contract, unless the party not\nmaking the transfer agrees at any time to  the transfer in the lease\ncontract or otherwise,\nthen, except as limited by contract:\n3. The transferor is liable to the party not making the transfer for damages\ncaused by the transfer to the extent that the damages could not\nreasonably be prevented by the party not making the transfer; and\n4. A court having jurisdiction may grant other appropriate relief, including\ncancellation of the lease contract or an injunction against the transfer.\n(5) A transfer of \"the lease\" or of \"all my rights under the lease \", or a transfer in similar\ngeneral terms, is a transfer of rights and, unless the language or the circumstances,\nas in a transfer for security, indicate the contrary, the transfer is a delegation of\nduties by the transferor to the transferee. Acceptance b y the transferee constitutes a\npromise by the transferee to perform those duties. The promise is enforceable by\neither the transferor or the other party to the lease contract.\n(6) Unless otherwise agreed by the lessor and the lessee, a delegation of perfor mance\ndoes not relieve the transferor as against the other party of any duty to perform or of\nany liability for default.\n(7) In a consumer lease, to prohibit the transfer of an interest of a party under the lease\ncontract or to make a transfer an event of default, the language must be specific, by\na writing, and conspicuous.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33381","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:43Z","sha256":"5ef2685956147042e783113c6b4a573f93aa26275e3c8ae9ae56d4c8771d81ff","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.2a-302","next":"us-ky/krs-355.2a-304"},"notice":"GroundRules: Original legal text. Not legal advice."}