{"data":{"id":"us-ky/krs-355.2a-305","jurisdiction":"us-ky","citation":"KRS 355.2A-305","heading":"Sale or sublease of goods by lessee.","body":"(1) Subject to the provisions of KRS 355.2A -303, a buyer or sublessee from the lessee\nof goods under an existing lease contract obtains, to the extent of the interest\ntransferred, the leasehold interest in the goods that the lessee had or had power to\ntransfer, and except as provided in subsection (2) of this section and subsection (4)\nof KRS 355.2A -511, takes subject to the existing lease contract. A lessee with a\nvoidable leasehold interest has power to transfer a good leasehold interest to a good\nfaith buyer for value or a good faith sublessee for value, but only to the extent set\nforth in the preceding sentence. When goods have been delivered under a\ntransaction of lease, the lessee has that power even though:\n(a) The lessor was deceived as to the identity of the lessee;\n(b) The delivery was in exchange for a check which is later dishonored; or\n(c) The delivery was procured through fraud punishable as larcenous under the\ncriminal law.\n(2) A buyer in the ordinary course of business or a sublessee in the ordina ry course of\nbusiness from a lessee who is a merchant dealing in goods of that kind to whom the\ngoods were entrusted by the lessor obtains, to the extent of the interest transferred,\nall of the lessor's and lessee's rights to the goods, and takes free of t he existing lease\ncontract.\n(3) A buyer or sublessee from the lessee of goods that are subject to an existing lease\ncontract and are covered by a certificate of title issued under a statute of this state or\nof another jurisdiction takes no greater rights t han those provided both by this\nsection and by the certificate of title statute.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33383","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:43Z","sha256":"bc7f3e052cc75d3b8d80b319ef7aab5319243e11404745c334586ffc1ca0e245","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.2a-304","next":"us-ky/krs-355.2a-306"},"notice":"GroundRules: Original legal text. Not legal advice."}