{"data":{"id":"us-ky/krs-355.9-317","jurisdiction":"us-ky","citation":"KRS 355.9-317","heading":"Interests that take priority over or take free of security interest or","body":"agricultural lien.\n(1) A security interest or agricultural lien is subordinate to the rights of:\n(a) A person entitled to priority under KRS 355.9-322; and\n(b) Except as otherwise provided in subsection (5) of this section, a person that\nbecomes a lien creditor before the earlier of the time:\n1. The security interest or agricultural lien is perfected; or\n2. One (1) of the conditions specified in KRS 355.9 -203(2)(c) is met and a\nfinancing statement covering the collateral is filed.\n(2) Except as otherwise provided in subsection (5) of this section, a buyer, other than a\nsecured party, of goods, instruments, tangible documents, or a certificated security\ntakes free o f a security interest or agricultural lien if the buyer gives value and\nreceives delivery of the collateral without knowledge of the security interest or\nagricultural lien and before it is perfected.\n(3) Except as otherwise provided in subsection (5) of th is section, a lessee of goods\ntakes free of a security interest or agricultural lien if the lessee gives value and\nreceives delivery of the collateral without knowledge of the security interest or\nagricultural lien and before it is perfected.\n(4) Subject to subsections (6) to (9) of this section, a licensee of a general intangible or\na buyer, other than a secured party, of collateral other than electronic money, goods,\ninstruments, tangible documents, or a certificated security takes free of a security\ninterest if the licensee or buyer gives value without knowledge of the security\ninterest and before it is perfected.\n(5) Except as otherwise provided in KRS 355.9 -320 and 355.9 -321, if a person files a\nfinancing statement with respect to a purchase -money security interest before or\nwithin twenty (20) days after the debtor receives delivery of the collateral, the\nsecurity int erest takes priority over the rights of a buyer, lessee, or lien creditor\nwhich arise between the time the security interest attaches and the time of filing.\n(6) A buyer, other than a secured party, of chattel paper takes free of a security interest\nif, without knowledge of the security interest and before it is perfected, the buyer\ngives value and:\n(a) Receives delivery of each authoritative tangible copy of the record evidencing\nthe chattel paper; and\n(b) If each authoritative electronic copy of the recor d evidencing chattel paper\ncan be subjected to control under KRS 355.9 -105, obtains control of each\nauthoritative electronic copy.\n(7) A buyer of an electronic document takes free of a security interest if, without\nknowledge of the security interest and be fore it is perfected, the buyer gives value\nand, if each authoritative electronic copy of the document can be subjected to\ncontrol under KRS 355.7-106, obtains control of each authoritative electronic copy.\n(8) A buyer of a controllable electronic record t akes free of a security interest if,\nwithout knowledge of the security interest and before it is perfected, the buyer gives\nvalue and obtains control of the controllable electronic record.\n(9) A buyer, other than a secured party, of a controllable account or a controllable\npayment intangible takes free of a security interest if, without knowledge of the\nsecurity interest and before it is perfected, the buyer gives value and obtains control\nof the controllable account or controllable payment intangible.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55691","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:48Z","sha256":"7bbdfa0a6343a20af08fb9f6afa5ec629d009f7d0fe444e670b69d4dc41ea0b5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-316","next":"us-ky/krs-355.9-318"},"notice":"GroundRules: Original legal text. Not legal advice."}