{"data":{"id":"us-ky/krs-355.9-334","jurisdiction":"us-ky","citation":"KRS 355.9-334","heading":"Priority of security interests in fixtures and crops.","body":"(1) (a) A security interest under this article may be created in goods that are fixtures\nor may continue in goods that become fixtures.\n(b) A security interest does not exist under  this article in ordinary building\nmaterials incorporated into an improvement on land.\n(2) This article does not prevent creation of an encumbrance upon fixtures under real\nproperty law.\n(3) In cases not governed by subsections (4) to (8) of this section, a security interest in\nfixtures is subordinate to a conflicting interest of an encumbrancer or owner of the\nrelated real property other than the debtor.\n(4) Except as otherwise provided in subsection (8) of this section, a perfected security\ninterest in fi xtures has priority over a conflicting interest of an encumbrancer or\nowner of the real property if the debtor has an interest of record in or is in\npossession of the real property and:\n(a) The security interest is a purchase-money security interest;\n(b) The interest of the encumbrancer or owner arises before the goods become\nfixtures; and\n(c) The security interest is perfected by a fixture filing before the goods become\nfixtures or within twenty (20) days thereafter.\n(5) A perfected security interest in fixtures has priority over a conflicting interest of an\nencumbrancer or owner of the real property if:\n(a) The debtor has an interest of record in the real property or is in possession of\nthe real property and the security interest:\n1. Is perfected by a fixture filing before the interest of the encumbrancer or\nowner is of record; and\n2. Has priority over any conflicting interest of a predecessor in title of the\nencumbrancer or owner;\n(b) Before the goods become fixtures, the  security interest is perfected by any\nmethod permitted by this article and the fixtures are readily removable:\n1. Factory or office machines;\n2. Equipment that is not primarily used or leased for use in the operation of\nthe real property; or\n3. Replacements of domestic appliances that are consumer goods;\n(c) The conflicting interest is a lien on the real property obtained by legal or\nequitable proceedings after the security interest was perfected by any method\npermitted by this article; or\n(d) The security interest is:\n1. Created in a manufactured home in a manufactured -home transaction;\nand\n2. Perfected pursuant to a statute described in KRS 355.9-311(1)(b).\n(6) A security interest in fixtures, whether or not perfected, has priority over a\nconflicting interest of an encumbrancer or owner of the real property if:\n(a) The encumbrancer or owner has, in a signed record, consented to the security\ninterest or disclaimed an interest in the goods as fixtures; or\n(b) The debtor has a right to remove the goods as aga inst the encumbrancer or\nowner.\n(7) The priority of the security interest under subsection (6)(b) of this section continues\nfor a reasonable time if the debtor's right to remove the goods as against the\nencumbrancer or owner terminates.\n(8) (a) A mortgage is a construction mortgage to the extent that it secures an\nobligation incurred for the construction of an improvement on land, including\nthe acquisition cost of the land, if a recorded record of the mortgage so\nindicates.\n(b) Except as otherwise provided in subsections (5) and (6) of this section, a\nsecurity interest in fixtures is subordinate to a construction mortgage if a\nrecord of the mortgage is recorded before the goods become fixtures and the\ngoods become fixtures before the completion of the constr uction. A mortgage\nhas this priority to the same extent as a construction mortgage to the extent\nthat it is given to refinance a construction mortgage.\n(9) A perfected security interest in crops growing on real property has priority over a\nconflicting interest of an encumbrancer or owner of the real property if the debtor\nhas an interest of record in or is in possession of the real property.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55698","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:48Z","sha256":"154ea29642bbbacfd382c017abba98284156438973a593d5eb31e6d3b304ffa6","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-333","next":"us-ky/krs-355.9-335"},"notice":"GroundRules: Original legal text. Not legal advice."}