{"data":{"id":"us-ky/krs-355.9-324","jurisdiction":"us-ky","citation":"KRS 355.9-324","heading":"Priority of purchase-money security interests.","body":"(1) Except as otherwise provided in subsection (7) of this section, a perfected purchase-\nmoney security interest in goods other than inventory or livestock has priority over\na conflicting security interest in the same goods, and, except as otherwise provided\nin KRS 355.9-327, a perfected security interest in its identifiable proceeds also has\npriority, if the purchase -money security interest is perfected when the debtor\nreceives possession of the collateral or within twenty (20) days thereafter.\n(2) Subject to subsection (3) of this section and except as otherwise provided in\nsubsection (7) of this section, a perfected purchase -money security interest in\ninventory has priority over a conflicting security interest in the same inventory, has\npriority over a confli cting security interest in chattel paper or an instrument\nconstituting proceeds of the inventory and in proceeds of the chattel paper, if so\nprovided in KRS 355.9 -330, and, except as otherwise provided in KRS 355.9 -327,\nalso has priority in identifiable ca sh proceeds of the inventory to the extent the\nidentifiable cash proceeds are received on or before the delivery of the inventory to\na buyer, if:\n(a) The purchase -money security interest is perfected when the debtor receives\npossession of the inventory;\n(b) The purchase-money secured party sends a signed notification to the holder of\nthe conflicting security interest;\n(c) The holder of the conflicting security interest receives the notification within\nfive (5) years before the debtor receives possession of the inventory; and\n(d) The notification states that the person sending the notification has or expects\nto acquire a purchase -money security interest in inventory of the debtor and\ndescribes the inventory.\n(3) Subsection (2)(b) to (d) of this section apply only if the holder of the conflicting\nsecurity interest had filed a financing statement covering the same types of\ninventory:\n(a) If the purchase -money security interest is perfected by filing, before the date\nof the filing; or\n(b) If the purchase-money security interest is temporarily perfected without filing\nor possession under KRS 355.9 -312(6), before the beginning of the twenty\n(20) day period thereunder.\n(4) Subject to subsection (5) of this section and except as otherwise provided in\nsubsection (7) of  this section, a perfected purchase -money security interest in\nlivestock that are farm products has priority over a conflicting security interest in\nthe same livestock, and, except as otherwise provided in KRS 355.9 -327, a\nperfected security interest in th eir identifiable proceeds and identifiable products in\ntheir unmanufactured states also has priority, if:\n(a) The purchase -money security interest is perfected when the debtor receives\npossession of the livestock;\n(b) The purchase-money secured party sends a signed notification to the holder of\nthe conflicting security interest;\n(c) The holder of the conflicting s ecurity interest receives the notification within\nsix (6) months before the debtor receives possession of the livestock; and\n(d) The notification states that the person sending the notification has or expects\nto acquire a purchase -money security interest i n livestock of the debtor and\ndescribes the livestock.\n(5) Subsection (4)(b) to (d) of this section apply only if the holder of the conflicting\nsecurity interest had filed a financing statement covering the same types of\nlivestock:\n(a) If the purchase -money security interest is perfected by filing, before the date\nof the filing; or\n(b) If the purchase-money security interest is temporarily perfected without filing\nor possession under KRS 355.9 -312(6), before the beginning of the twenty\n(20) day period thereunder.\n(6) Except as otherwise provided in subsection (7) of this section, a perfected purchase-\nmoney security interest in software has priority over a conflicting security interest\nin the same collateral, and, except as otherwise provided in KRS 355.9 -327, a\nperfected security interest in its identifiable proceeds also has priority, to the extent\nthat the purchase -money security interest in the goods in which the software was\nacquired for use has priority in the goods and proceeds of the goods under this\nsection.\n(7) If more than one (1) security interest qualifies for priority in the same collateral\nunder subsection (1), (2), (4), or (6) of this section:\n(a) A security interest securing an obligation incurred as all or part of the price of\nthe collateral h as priority over a security interest securing an obligation\nincurred for value given to enable the debtor to acquire rights in or the use of\ncollateral; and\n(b) In all other cases, KRS 355.9 -322(1) applies to the qualifying security\ninterests.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55693","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:48Z","sha256":"9e25376eecd645928d3ff59301be1f280ad8fae9ada232f0467bb09c43dca32d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-323","next":"us-ky/krs-355.9-325"},"notice":"GroundRules: Original legal text. Not legal advice."}