{"data":{"id":"us-ky/krs-355.9-607","jurisdiction":"us-ky","citation":"KRS 355.9-607","heading":"Collection and enforcement by secured party.","body":"(1) If so agreed, and in any event after default, a secured party:\n(a) May notify an account debtor or other person obligated on collateral to make\npayment or otherwise render performance to or for the benefit of the secured\nparty;\n(b) May take any proceeds to  which the secured party is entitled under KRS\n355.9-315;\n(c) May enforce the obligations of an account debtor or other person obligated on\ncollateral and exercise the rights of the debtor with respect to the obligation of\nthe account debtor or other perso n obligated on collateral to make payment or\notherwise render performance to the debtor, and with respect to any property\nthat secures the obligations of the account debtor or other person obligated on\nthe collateral;\n(d) If it holds a security interest in  a deposit account perfected by control under\nKRS 355.9 -104(1)(a), may apply the balance of the deposit account to the\nobligation secured by the deposit account; and\n(e) If it holds a security interest in a deposit account perfected by control under\nKRS 355.9-104(1)(b) or (c), may instruct the bank to pay the balance of the\ndeposit account to or for the benefit of the secured party.\n(2) If necessary to enable a secured party to exercise under subsection (1)(c) of this\nsection the right of a debtor to enforc e a mortgage nonjudicially, the secured party\nmay record in the office in which a record of the mortgage is recorded:\n(a) A copy of the security agreement that creates or provides for a security interest\nin the obligation secured by the mortgage; and\n(b) The secured party's sworn affidavit in recordable form stating that:\n1. A default has occurred with respect to the obligation secured by the\nmortgage; and\n2. The secured party is entitled to enforce the mortgage nonjudicially.\n(3) A secured party shall proc eed in a commercially reasonable manner if the secured\nparty:\n(a) Undertakes to collect from or enforce an obligation of an account debtor or\nother person obligated on collateral; and\n(b) Is entitled to charge back uncollected collateral or otherwise to full or limited\nrecourse against the debtor or a secondary obligor.\n(4) A secured party may deduct from the collections made pursuant to subsection (3) of\nthis section reasonable expenses of  collection and enforcement, including\nreasonable attorney's fees and legal expenses incurred by the secured party.\n(5) This section does not determine whether an account debtor, bank, or other person\nobligated on collateral owes a duty to a secured party.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40691","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:49Z","sha256":"2bc6ba9d43e3d7a8aa27e6fad3afa78b49acdbaf3a36b06f915862891869e8b6","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-606","next":"us-ky/krs-355.9-608"},"notice":"GroundRules: Original legal text. Not legal advice."}