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Code · Kentucky · Chapter 365 — Trade practices

365.860 Rules constituting consignment.

174 words·~1 min read·/ky/chapter-365/365-860

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

The following provisions shall apply to consignment of a work of fine art:
(1)The art dealer, after delivery of the work of fine art, shall constitute an agent of the
artist for the purpose of sale or exhibition of the consigned work of fine art;
(2)The work of fine art shall constitute property held in trust by the consignee for the
benefit of the consignor, and shall not be subject to claim by a creditor of the
consignee. Should the consignee initiate or be forced into bankruptcy proceedings,
the consignor shall have the continuing authority to claim physical possession of the
work of fine art;
(3)The consignee shall be responsible for the loss of, or damage to, the work of fine
art; and
(4)The proceeds from the sale of the work of fine art shall constitute funds held in trust
by the consignee for the benefit of the consignor. Such proceeds shall first be
applied to pay any balance due the consignor, unless the consignor expressly agrees
otherwise in writing.
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