{"data":{"id":"us-ky/krs-355.2a-308","jurisdiction":"us-ky","citation":"KRS 355.2A-308","heading":"Special rights of creditors.","body":"(1) A creditor of a lessor in possession of goods subject to a lease contract may treat the\nlease contract as void if, as against the creditor, retention of possession by the lessor\nis fraudulent under any statute or rule of law, but retention of possession in  good\nfaith and current course of trade by the lessor for a commercially reasonable time\nafter the lease contract becomes enforceable is not fraudulent.\n(2) Nothing in this article impairs the rights of creditors of a lessor if the lease contract:\n(a) Becomes enforceable, not in current course of trade but in satisfaction of or as\nsecurity for a pre-existing claim for money, security, or the like; and\n(b) Is made under circumstances which under any statute or rule of law apart from\nthis article would consti tute the transaction a fraudulent transfer or voidable\npreference.\n(3) A creditor of a seller may treat a sale or an identification of goods to a contract for\nsale as void if, as against the creditor, retention of possession by the seller is\nfraudulent under any statute or rule of law, but retention of possession of the goods\npursuant to a lease contract entered into by the seller as lessee and the buyer as\nlessor in connection with the sale or identification of the goods is not fraudulent if\nthe buyer bought for value and in good faith.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33386","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:43Z","sha256":"5db6bb4212f19b14b382abba699336af88688fc7aa03c77ee5af0a6abd469e80","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.2a-307","next":"us-ky/krs-355.2a-309"},"notice":"GroundRules: Original legal text. Not legal advice."}