{"data":{"id":"us-ky/krs-355.9-328","jurisdiction":"us-ky","citation":"KRS 355.9-328","heading":"Priority of security interests in investment property.","body":"The following rules govern priority among conflicting security interests in the same\ninvestment property:\n(1) A security interest held by a secured party having control of investment property\nunder KRS 355.9 -106 has priority over a security interest held b y a secured party\nthat does not have control of the investment property.\n(2) Except as otherwise provided in subsections (3) and (4) of this section, conflicting\nsecurity interests held by secured parties each of which has control under KRS\n355.9-106 rank according to priority in time of:\n(a) If the collateral is a security, obtaining control;\n(b) If the collateral is a security entitlement carried in a securities account and:\n1. If the secured party obtained control under KRS 355.8 -106(4)(a), the\nsecured party's becoming the person for which the securities account is\nmaintained;\n2. If the secured party obtained control under KRS 355.8 -106(4)(b), the\nsecurities intermediary's agreement to comply with the secured party's\nentitlement orders with respect to sec urity entitlements carried or to be\ncarried in the securities account; or\n3. If the secured party obtained control through another person under KRS\n355.8-106(4)(c), the time on which priority would be based under this\nparagraph if the other person were the secured party; or\n(c) If the collateral is a commodity contract carried with a commodity\nintermediary, the satisfaction of the requirement for control specified in KRS\n355.9-106(2)(b) with respect to commodity contracts carried or to be carried\nwith the commodity intermediary.\n(3) A security interest held by a securities intermediary in a security entitlement or a\nsecurities account maintained with the securities intermediary has priority over a\nconflicting security interest held by another secured party.\n(4) A security interest held by a commodity intermediary in a commodity contract or a\ncommodity account maintained with the commodity intermediary has priority over a\nconflicting security interest held by another secured party.\n(5) A security interest in a certificated security in registered form which is perfected by\ntaking delivery under KRS 355.9 -313(1) and not by control under KRS 355.9 -314\nhas priority over a conflicting security interest perfected by a method other than\ncontrol.\n(6) Conflicting security interests created by a broker, securities intermediary, or\ncommodity intermediary which are perfected without control under KRS 355.9 -106\nrank equally.\n(7) In all other cases, priority among conflicting security interests in investment\nproperty is governed by KRS 355.9-322 and 355.9-323.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33781","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:48Z","sha256":"7789c7887013c79c475cd8fba10d2af17eb4c7be146a563c8abb7624d047b16b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-327","next":"us-ky/krs-355.9-329"},"notice":"GroundRules: Original legal text. Not legal advice."}