{"data":{"id":"us-ky/krs-355.4-210","jurisdiction":"us-ky","citation":"KRS 355.4-210","heading":"Security interest of collecting bank in items, accompanying documents,","body":"and proceeds.\n(1) A collecting bank has a security interest in an item and any accompanying\ndocuments or the proceeds of either:\n(a) In case of an item deposited in an account,  to the extent to which credit given\nfor the item has been withdrawn or applied;\n(b) In case of an item for which it has given credit available for withdrawal as of\nright, to the extent of the credit given, whether or not the credit is drawn upon\nor there is a right of charge-back; or\n(c) If it makes an advance on or against the item.\n(2) If credit given for several items received at one (1) time or pursuant to a single\nagreement is withdrawn or applied in part, the security interest remains upon all the\nitems, any accompanying documents or the proceeds of either. For the purpose of\nthis section, credits first given are first withdrawn.\n(3) Receipt by a collecting bank of a final settlement for an item is a realization on its\nsecurity interest in the item, accompanying documents, and proceeds. So long as the\nbank does not receive final settlement for the item or give up possession of the item\nor possession or control of the accompanying documents for purposes other than\ncollection, the security interest continues to that extent and is subject to Article 9 of\nthis chapter, but:\n(a) No security agreement is necessary to make the security interest enforceable\n(KRS 355.9-203(2)(c)1.); and\n(b) No filing is required to perfect the security interest; and\n(c) The security interest has priority over conflicting perfected security interests\nin the item, accompanying documents, or proceeds.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40659","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"ed7750ab0c4006295324773fb8fb93b95730d347cb250e83a4b37061d4c2e8bc","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4-209","next":"us-ky/krs-355.4-211"},"notice":"GroundRules: Original legal text. Not legal advice."}