278.690 Priority of transfer not impaired by modification -- Priority of conflicting
358 words·~2 min read·
/ky/278-690A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
interests.
(1)The priority of transfer perfected under KRS 278.686, 278.688, 278.690, and
278.692 shall not be impaired by any later modification of the financing order or
securitized property or by the commingling of funds arising from securitized
property with other funds. Any other security interest that may apply to those funds,
other than a security interest perfected under KRS 278.686 and 278.688 and this
section is terminated when those funds are transferred to a segregated account for
the assignee or a financing party. If securitized property has been transferred to an
assignee or financing party, any proceeds of that property shall be held in trust for
the assignee or financing party.
(2)The priority of the conflicting interest of assignees in the same interest or rights in
any securitized property shall be determined as follows:
(a)Conflicting perfected interests or rights of assignees rank according to priority
in time of perfection. Priority dates from the time of filing covering the
transfer shall be made in accordance with KRS 278.692;
(b)A perfected interest or right of an assignee has priority over a conflicting
unperfected interest or right of an assignee; and
(c)A perfected interest or right of an assignee has priority over a person who
becomes a lien creditor after the perfection of the assignee's interest or right.
(3)The description of securitized property being transferred to an assignee in any sale
agreement, purchase agreement, or other transfer agreement, granted or pledged to a
pledgee in any security agreement, pledge agreement, or other security document,
or indicated in any financing statement shall be sufficient only if the description or
indication:
(a)Refers to the financing order that created the securitized property; and
(b)States that the agreement or financing statement covers all or part of the
property described in the financing order.
(4)KRS 278.670 to 278.696 and 65.114 shall apply to all purported transfers of, and all
purported grants, liens, or security interests in, securitized property, regardless of
whether the related sale agreement, purchase agreement, or transfer agreement,
security agreement, pledge agreement, or other security document was entered into,
or any financing statement was filed.