{"data":{"id":"us-ky/krs-355.9-205","jurisdiction":"us-ky","citation":"KRS 355.9-205","heading":"Use or disposition of collateral permissible.","body":"(1) A security interest is not invalid or fraudulent against creditors solely because:\n(a) The debtor has the right or ability to:\n1. Use, commingle, or dispose of all or part of the collateral, including\nreturned or repossessed goods;\n2. Collect, compromise, enforce, or otherwise deal with collateral;\n3. Accept the return of collateral or make repossessions; or\n4. Use, commingle, or dispose of proceeds; or\n(b) The secured party fails to require the debtor to account for proceeds or replace\ncollateral.\n(2) This section does not relax the requirements of possession if attachment, perfection,\nor enforcement of a security interest depends upon possession of the collateral by\nthe secured party.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33748","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:47Z","sha256":"6a4af3c0589d8efb369792ef0a73aae0260264e97a2d23b839786f3a37990f1a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-204","next":"us-ky/krs-355.9-206"},"notice":"GroundRules: Original legal text. Not legal advice."}