{"data":{"id":"us-ky/krs-355.8-510","jurisdiction":"us-ky","citation":"KRS 355.8-510","heading":"Rights of purchaser of security entitlement from entitlement holder.","body":"(1) In a case not covered by the priority rules in Article 9 of this chapter or the rules\nstated in subsection (3) of this section, an action based on an adverse claim to a\nfinancial asset or security entitlement, whether framed in conversion, replevin,\nconstructive trust, equitable lien, or other theory, may not be asserted against a\nperson who purchases a security entitlement, or an interest therein, from an\nentitlement holder if the purchaser gives value, does not have notice of the adverse\nclaim, and obtains control.\n(2) If an adverse claim could not have been asserted against an entitlement holder under\nKRS 355.8 -502, the adverse claim cannot be asserted against a person who\npurchases a security entitlement, or an interest therein, from the entitlement holder.\n(3) In a case not covered by the priority rules in Article 9 of this chapter, a purchaser for\nvalue of a security entitlement, or an interest therein, who obtains control has\npriority over a purchaser of a security entitlement, or an interest therein, who does\nnot obtain control. Except as otherwise provided in subsection (4) of this section,\npurchasers who have control rank according to priority in time of:\n(a) The purchaser's becoming the person for whom the securities account, in\nwhich the security e ntitlement is carried, is maintained, if the purchaser\nobtained control under KRS 355.8-106(4)(a);\n(b) The securities intermediary's agreement to comply with the purchaser's\nentitlement orders with respect to security entitlements carried or to be carried\nin the securities account in which the security entitlement is carried, if the\npurchaser obtained control under KRS 355.8-106(4)(b); or\n(c) If the purchaser obtained control through another person under KRS 355.8 -\n106(4)(c), the time on which priority would  be based under this subsection if\nthe other person were the secured party.\n(4) A securities intermediary as purchaser has priority over a conflicting purchaser who\nhas control unless otherwise agreed by the securities intermediary.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33726","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:47Z","sha256":"3fb02bbac60992509939cbcee8325c0941f3b29ea2fdac7a99497b1814a78251","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.8-509","next":"us-ky/krs-355.8-511"},"notice":"GroundRules: Original legal text. Not legal advice."}