{"data":{"id":"us-ky/krs-355.9-313","jurisdiction":"us-ky","citation":"KRS 355.9-313","heading":"When possession by or delivery to secured party perfects security","body":"interest without filing.\n(1) (a) Except as otherwise provided in subsection (2) of this section, a secured party\nmay perfect a security interest in goods, instruments , negotiable tangible\ndocuments, or tangible money by taking possession of the collateral.\n(b) A secured party may perfect a security interest in certificated securities by\ntaking delivery of the certificated securities under KRS 355.8-301.\n(2) With respec t to goods covered by a certificate of title issued by this\nCommonwealth, a secured party may perfect a security interest in the goods by\ntaking possession of the goods only in the circumstances described in KRS 355.9 -\n316(4).\n(3) With respect to collateral  other than certificated securities and goods covered by a\ndocument, a secured party takes possession of collateral in the possession of a\nperson other than the debtor, the secured party, or a lessee of the collateral from the\ndebtor in the ordinary course of the debtor's business, when:\n(a) The person in possession signs a record acknowledging that it holds\npossession of the collateral for the secured party's benefit; or\n(b) The person takes possession of the collateral after having signed a record\nacknowledging that it will hold possession of the collateral for the secured\nparty's benefit.\n(4) If perfection of a security interest depends upon possession of the collateral by a\nsecured party, perfection occurs not earlier than the time the secured party take s\npossession and continues only while the secured party retains possession.\n(5) A security interest in a certificated security in registered form is perfected by\ndelivery when delivery of the certificated security occurs under KRS 355.8 -301 and\nremains per fected by delivery until the debtor obtains possession of the security\ncertificate.\n(6) A person in possession of collateral is not required to acknowledge that it holds\npossession for a secured party's benefit.\n(7) If a person acknowledges that it holds possession for the secured party's benefit:\n(a) The acknowledgment is effective under sub section (3) of this section or KRS\n355.8-301(1), even if the acknowledgment violates the rights of a debtor; and\n(b) Unless the person otherwise agrees or law other than this article otherwise\nprovides, the person does not owe any duty to the secured party  and is not\nrequired to confirm the acknowledgment to another person.\n(8) A secured party having possession of collateral does not relinquish possession by\ndelivering the collateral to a person other than the debtor or a lessee of the collateral\nfrom the d ebtor in the ordinary course of the debtor's business if the person was\ninstructed before the delivery or is instructed contemporaneously with the delivery:\n(a) To hold possession of the collateral for the secured party's benefit; or\n(b) To redeliver the collateral to the secured party.\n(9) (a) A secured party does not relinquish possession, even if a delivery under\nsubsection (8) of this section violates the rights of a debtor.\n(b) A person to which collateral is delivered under subsection (8) of this sect ion\ndoes not owe any duty to the secured party and is not required to confirm the\ndelivery to another person unless the person otherwise agrees or law other\nthan this article otherwise provides.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55687","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:48Z","sha256":"872a4dce0df91fa3031d191cb5fc3955f5019ee955abe3731f236b12878f4a96","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-312","next":"us-ky/krs-355.9-314"},"notice":"GroundRules: Original legal text. Not legal advice."}