{"data":{"id":"us-ky/krs-355.9-316","jurisdiction":"us-ky","citation":"KRS 355.9-316","heading":"Continued perfection of security interest following change in governing","body":"law.\n(1) A security interest perfected pursuant to the law of the jurisdiction designated in\nKRS 355.9 -301(1), 355.9 -305(3), 355.9 -3061(4), or 355.9 -3062(2) rem ains\nperfected until the earliest of:\n(a) The time perfection would have ceased under the law of that jurisdiction;\n(b) The expiration of four (4) months after a change of the debtor's location to\nanother jurisdiction; or\n(c) The expiration of one (1) year  after a transfer of collateral to a person that\nthereby becomes a debtor and is located in another jurisdiction.\n(2) If a security interest described in subsection (1) of this section becomes perfected\nunder the law of the other jurisdiction before the ea rliest time or event described in\nthat subsection, it remains perfected thereafter. If the security interest does not\nbecome perfected under the law of the other jurisdiction before the earliest time or\nevent, it becomes unperfected and is deemed never to have been perfected as\nagainst a purchaser of the collateral for value.\n(3) A possessory security interest in collateral, other than goods covered by a certificate\nof title and as -extracted collateral consisting of goods, remains continuously\nperfected if:\n(a) The collateral is located in one jurisdiction and subject to a security interest\nperfected under the law of that jurisdiction;\n(b) Thereafter the collateral is brought into another jurisdiction; and\n(c) Upon entry into the other jurisdiction, the secu rity interest is perfected under\nthe law of the other jurisdiction.\n(4) Except as otherwise provided in subsection (5) of this section, a security interest in\ngoods covered by a certificate of title which is perfected by any method under the\nlaw of another jurisdiction when the goods become covered by a certificate of title\nfrom this Commonwealth remains perfected until the security interest would have\nbecome unperfected under the law of the other jurisdiction had the goods not\nbecome so covered.\n(5) A security interest described in subsection (4) of this section becomes unperfected\nas against a purchaser of the goods for value and is deemed never to have been\nperfected as against a purchaser of the goods for value if the applicable\nrequirements for perfection under KRS 355.9 -311(2) or 355.9-313 are not satisfied\nbefore the earlier of:\n(a) The time the security interest would have become unperfected under the law\nof the other jurisdiction had the goods not become covered by a certificate of\ntitle from this Commonwealth; or\n(b) The expiration of four (4) months after the goods had become so covered.\n(6) A security interest in chattel paper, controllable accounts, controllable electronic\nrecords, controllable payment intangibles, deposit accounts, letter -of-credit rights,\nor investment property which is perfected under the law of the chattel paper's\njurisdiction, the controllable electronic record's jurisdiction, the bank's jurisdiction,\nthe issuer's jurisdiction, a nominated person's jurisdiction, the secu rities\nintermediary's jurisdiction, or the commodity intermediary's jurisdiction, as\napplicable, remains perfected until the earlier of:\n(a) The time the security interest would have become unperfected under the law\nof that jurisdiction; or\n(b) The expiration of four (4) months after a change of the applicable jurisdiction\nto another jurisdiction.\n(7) If a security interest described in subsection (6) of this section becomes perfected\nunder the law of the other jurisdiction before the earlier of the time or the end of the\nperiod described in that subsection, it remains perfected thereafter. If the security\ninterest does not become perfected under the law of the other jurisdiction before the\nearlier of that time or the end of that period, it becomes unperfect ed and is deemed\nnever to have been perfected as against a purchaser of the collateral for value.\n(8) The following rules apply to collateral to which a security interest attaches within\nfour (4) months after the debtor changes its location to another jurisdiction:\n(a) A financing statement filed before the change pursuant to the law of the\njurisdiction designated in KRS 355.9 -301(1) or 355.9 -305(3) is effective to\nperfect a security interest in the collateral if the financing statement would\nhave been effective to perfect a security interest in the collateral if the debtor\nhad not changed its location; and\n(b) If a security interest that is perfected by a financing statement that is effective\nunder paragraph (a) of this subsection becomes perfected under th e law of the\nother jurisdiction before the earlier of the time the financing statement would\nhave become ineffective under the law of the jurisdiction designated in KRS\n355.9-301(1) or 355.9-305(3) or the expiration of the four (4) month period, it\nremains perfected thereafter. If the security interest does not become perfected\nunder the law of the other jurisdiction before the earlier time or event, it\nbecomes unperfected and is deemed never to have been perfected as against a\npurchaser of the collateral for value.\n(9) If a financing statement naming an original debtor is filed pursuant to the law of the\njurisdiction designated in KRS 355.9 -301(1) or 355.9-305(3) and the new debtor is\nlocated in another jurisdiction, the following rules apply:\n(a) The financing statement is effective to perfect a security interest in collateral\nin which the new debtor has or acquires rights before or within four (4)\nmonths after the new debtor becomes bound under KRS 355.9 -203(4), if the\nfinancing statement would have been e ffective to perfect a security interest in\nthe collateral if the collateral had been acquired by the original debtor; and\n(b) A security interest that is perfected by the financing statement and which\nbecomes perfected under the law of the other jurisdicti on before the earlier of\nthe expiration of the four (4) month period or the time the financing statement\nwould have become ineffective under the law of the jurisdiction designated in\nKRS 355.9 -301(1) or 355.9 -305(3) remains perfected thereafter. A security\ninterest that is perfected by the financing statement but which does not\nbecome perfected under the law of the other jurisdiction before the earlier\ntime or event becomes unperfected and is deemed never to have been\nperfected as against a purchaser of the collateral for value.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55690","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:48Z","sha256":"72f10d872fb1c014f05884a5028a34a7a878be6d01c2b56b5e3316013c05386b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-315","next":"us-ky/krs-355.9-317"},"notice":"GroundRules: Original legal text. Not legal advice."}