{"data":{"id":"us-ky/krs-355.9-315","jurisdiction":"us-ky","citation":"KRS 355.9-315","heading":"Secured party's rights on disposition of collateral and in proceeds.","body":"(1) Except as otherwise provided in this article and in KRS 355.2-403(2):\n(a) A security interest or agricultural lien continues in collateral notwithstanding\nsale, lease, license, exchange, or other disposition thereof unless the secured\nparty authorized the disposition free of the security interest or agricultural\nlien; and\n(b) A security interest attaches to any identifiable proceeds of collateral.\n(2) Proceeds that are commingled with other property are identifiable proceeds:\n(a) If the proceeds are goods, to the extent provided by KRS 355.9-336; and\n(b) If the proceeds are not goods, to the extent that the secured party identifies the\nproceeds by a method of tracing, including application of equitable principles,\nthat is permitted under law other than this article with respect to commingled\nproperty of the type involved.\n(3) A security interest in proceeds is a perfected security interest if the security interest\nin the original collateral was perfected.\n(4) A perfected security interest in proceeds becomes unperfected on the twenty -first\nday after the security interest attaches to the proceeds unless:\n(a) The following conditions are satisfied:\n1. A filed financing statement covers the original collateral;\n2. The proceeds are collateral in which a security i nterest may be perfected\nby filing in the office in which the financing statement has been filed;\nand\n3. The proceeds are not acquired with cash proceeds;\n(b) The proceeds are identifiable cash proceeds; or\n(c) The security interest in the proceeds is perfected other than under subsection\n(3) of this section when the security interest attaches to the proceeds or within\ntwenty (20) days thereafter.\n(5) If a filed financing statement covers the original collateral,  a security interest in\nproceeds which remains perfected under subsection (4)(a) of this section becomes\nunperfected at the later of:\n(a) When the effectiveness of the filed financing statement lapses under KRS\n355.9-515 or is terminated under KRS 355.9-513; or\n(b) The twenty-first day after the security interest attaches to the proceeds.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33768","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:48Z","sha256":"947fad03ff5d9f3a71aea4101dfb30d54c0f2b6fdeec804de9d85a55335f26cc","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-3141","next":"us-ky/krs-355.9-316"},"notice":"GroundRules: Original legal text. Not legal advice."}