{"data":{"id":"us-ky/krs-355.9-109","jurisdiction":"us-ky","citation":"KRS 355.9-109","heading":"Scope.","body":"(1) Except as otherwise provided in subsections (3) and (4) of this section, this article\napplies to:\n(a) A transaction, regardless of its form, that creates a security interest in personal\nproperty or fixtures by contract;\n(b) An agricultural lien;\n(c) A sale of accounts, chattel paper, payment intangibles, or promissory notes;\n(d) A consignment;\n(e) A security interest arising under KRS 355.2 -401, 355.2-505, 355.2-711(3), or\n355.2A-508(5), as provided in KRS 355.9-110; and\n(f) A security interest arising under KRS 355.4-210 or 355.5-118.\n(2) The application of this article to a security interest in a secured obligation is not\naffected by the fact that the obligation is itself secured by a transaction or interest to\nwhich this article does not apply.\n(3) This article does not apply to the extent that:\n(a) A statute, regulation, or treaty of the United States preempts this article;\n(b) Another statute of this Commonwealth expressly governs the creation,\nperfection, priority, or enforcement of a security interest created by this\nCommonwealth or a governmental unit of this Commonwealth;\n(c) A statute of another state, a foreign country, or a governmental unit of another\nstate or a foreign country, other than a statute generally applicable to security\ninterests, expressly governs creation, perfection, priority, or enforcement of a\nsecurity interest created by the state, country, or governmental unit; or\n(d) The rights of a transferee beneficiary or nominated person under a letter of\ncredit are independent and superior under KRS 355.5-114.\n(4) This article does not apply to:\n(a) A landlord's lien, other than an agricultural lien;\n(b) A lien, other than an agricultural lien, given by statute or other rule of law for\nservices or materials, but KRS 355.9 -333 applies with respect to priority of\nthe lien;\n(c) An assignment of a claim for wages, salary, or other compensation of an\nemployee, or for workers' compensation benefits payable to an individual;\n(d) A sale of accounts, chattel paper, payment intangibles, or promissory notes as\npart of a sale of the business out of which they arose;\n(e) An assignment of accounts, chattel paper, payment  intangibles, or promissory\nnotes which is for the purpose of collection only;\n(f) An assignment of a right to payment under a contract to an assignee that is\nalso obligated to perform under the contract;\n(g) An assignment of a single account, payment inta ngible, or promissory note to\nan assignee in full or partial satisfaction of a preexisting indebtedness;\n(h) A transfer of an interest in or an assignment of a claim under a policy of\ninsurance, other than an assignment by or to a health-care provider of a health-\ncare-insurance receivable and any subsequent assignment of the right to\npayment, but KRS 355.9 -315 and 355.9 -322 apply with respect to proceeds\nand priorities in proceeds;\n(i) An assignment of a right represented by a judgment, other than a judgmen t\ntaken on a right to payment that was collateral;\n(j) A right of recoupment or set-off, but:\n1. KRS 355.9 -340 applies with respect to the effectiveness of rights of\nrecoupment or set-off against deposit accounts; and\n2. KRS 355.9-404 applies with respect to defenses or claims of an account\ndebtor;\n(k) The creation or transfer of an interest in or lien on real property, including a\nlease or rents thereunder, except to the extent that provision is made for:\n1. Liens on real property in KRS 355.9-203 and 355.9-308;\n2. Fixtures in KRS 355.9-334;\n3. Fixture filings in KRS 355.9 -501, 355.9-502, 355.9-512, 355.9-516, and\n355.9-519; and\n4. Security agreements covering personal and real property in KRS 355.9 -\n604;\n(l) An assignment of a claim arising in tort, other t han a commercial tort claim,\nbut KRS 355.9 -315 and 355.9 -322 apply with respect to proceeds and\npriorities in proceeds;\n(m) An assignment of a deposit account in a consumer transaction, but KRS\n355.9-315 and 355.9 -322 apply with respect to proceeds and pri orities in\nproceeds;\n(n) A claim or right to receive compensation for injuries or sickness as described\nin 26 U.S.C. sec. 104(a)(1) or (2), as amended from time to time;\n(o) A claim or right to receive benefits under a special needs trust as described in\n42 U.S.C. sec. 1396p(d)(4), as amended from time to time;\n(p) A right to receive money under a structured settlement as defined by KRS\n454.430; or\n(q) A public -finance transaction or a transfer by a government or governmental\nunit.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33736","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:47Z","sha256":"6d0a5041bf00b8ed0aca6a8ccde979a8e30e4a75b766f425de1e9d6ce3eb54ed","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-108","next":"us-ky/krs-355.9-110"},"notice":"GroundRules: Original legal text. Not legal advice."}