{"data":{"id":"us-ky/krs-355.8-105","jurisdiction":"us-ky","citation":"KRS 355.8-105","heading":"Notice of adverse claim.","body":"(1) A person has notice of an adverse claim if:\n(a) The person knows of the adverse claim;\n(b) The person is aware of facts sufficient to indicate that there is a significant\nprobability that the adverse claim exists and deliberately avoids information\nthat would establish the existence of the adverse claim; or\n(c) The person has a duty, imposed by statute or regulation, to investigate whether\nan adverse claim exists, and the investigation so required would establish the\nexistence of the adverse claim.\n(2) Having knowledge that a financial asset or interest therein is or has been transferred\nby a representative imposes no duty of inquiry into the rightfulness of a transaction\nand is not notice of an adverse claim. However, a person who knows that a\nrepresentative has transferred a financial asset or inter est therein in a transaction\nthat is, or whose proceeds are being used, for the individual benefit of the\nrepresentative or otherwise in breach of duty has notice of an adverse claim.\n(3) An act or event that creates a right to immediate performance of the  principal\nobligation represented by a security certificate or sets a date on or after which the\ncertificate is to be presented or surrendered for redemption or exchange does not\nitself constitute notice of an adverse claim except in the case of a transfer  more\nthan:\n(a) One (1) year after a date set for presentment or surrender for redemption or\nexchange; or\n(b) Six (6) months after a date set for payment of money against presentation or\nsurrender of the certificate, if money was available for payment on that date.\n(4) A purchaser of a certificated security has notice of an adverse claim if the security\ncertificate:\n(a) Whether in bearer or registered form, has been indorsed \"for collection\" or\n\"for surrender\" or for some other purpose not involving transfer; or\n(b) Is in bearer form and has on it an unambiguous statement that it is the property\nof a person other than the transferor, but the mere writing of a name on the\ncertificate is not such a statement.\n(5) Filing of a financing statement under Article 9  of this chapter is not notice of an\nadverse claim to a financial asset.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33666","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:46Z","sha256":"a1ee82bde38863e2863e8cba1d43af7cd78c8194072a0fde4c6d410ce173ab35","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.8-104","next":"us-ky/krs-355.8-106"},"notice":"GroundRules: Original legal text. Not legal advice."}