{"data":{"id":"us-ky/krs-355.9-320","jurisdiction":"us-ky","citation":"KRS 355.9-320","heading":"Buyer of goods.","body":"(1) Except as otherwise provided in subsection (5) of this section, a buyer in ordinary\ncourse of business, other than a person buying farm products from a person engaged\nin farming operations, takes free of a security interest created by the buyer's seller,\neven if the security interest is perfected and the buyer knows of its existence.\n(2) Except as otherwise provided in subsection (5) of this section, a buyer of goods\nfrom a person who used or bought the goods for use primarily for personal, family,\nor household purposes takes free of a security interest, even if perfected, if the buyer\nbuys:\n(a) Without knowledge of the security interest;\n(b) For value;\n(c) Primarily for the buyer's personal, family, or household purposes; and\n(d) Before the filing of a financing statement covering the goods.\n(3) To the extent that it affects the priority of a security interest over a buyer of goods\nunder subsection (2) of this section, the period of effectiveness of a filing made in\nthe jurisdiction in which the seller is lo cated is governed by KRS 355.9 -316(1) and\n(2).\n(4) A buyer in ordinary course of business buying oil, gas, or other minerals at the\nwellhead or minehead or after extraction takes free of an interest arising out of an\nencumbrance.\n(5) Subsections (1) and (2 ) of this section do not affect a security interest in goods in\nthe possession of the secured party under KRS 355.9-313.\n(6) If any horse of a registered breed, the racing of which is regulated by KRS Chapter\n230, or any interest in such a horse (including  stallion shares and seasons), is\nsubject to a lien or a security interest and that horse or interest is sold at public\nauction in the ordinary course of business by an organization engaged in the\nbusiness of selling these horses or interests at public auc tion, a bona fide purchaser\nfor value of the horse or interest takes title to the horse or interest free and clear of\nthe lien or security interest, and the organization selling the horse or interest is not\nliable in any manner to the holder of the lien or security interest, except to the extent\nprovided by the Federal Food Security Act, 7 U.S.C. sec. 1631. However, the lien or\nsecurity interest attaches to the proceeds from the sale to the extent provided in\nKRS 355.9-315(1)(b).","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33773","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:48Z","sha256":"f233cebdacc687013ed6d79da733a6e54a58e5f12e21a72339959f497e48082f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-319","next":"us-ky/krs-355.9-321"},"notice":"GroundRules: Original legal text. Not legal advice."}