Kentucky Revised Statutes

Ky. Rev. Stat. § 355.2-702 (2026)

Seller's remedies on discovery of buyer's insolvency

✓ current as of May 2026
Find cases: SyfertCases citing this section KY-LRCapps.legislature.ky.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar

(1) Where the seller discovers the buyer to be insolvent he may refuse delivery except for cash including payment for all goods theretofore delivered under the contract, and stop delivery under this article (KRS 355.2-705).

(2) Where the seller discovers that the buyer has received goods on credit while insolvent he may reclaim the goods upon demand made within ten (10) days after the receipt, but if misrepresentation of solvency has been made to the particular seller in writing within three (3) months before delivery the ten (10) day limitation does not apply. Except as provided in this subsection the seller may not base a right to reclaim goods on the buyer's fraudulent or innocent misrepresentation of solvency or of intent to pay.

(3) The seller's right to reclaim under subsection (2) is subject to the rights of a buyer in ordinary course or other good faith purchaser under this article (KRS 355.2-403). Successful reclamation of goods excludes all other remedies with respect to them. Effective: July 1, 1987 History: Amended 1986, Ky. Acts ch. 118, sec. 5, effective July 1, 1987 -- Created 1958 Ky. Acts ch. 77, sec. 2-702, effective July 1, 1960.

Notes of Decisions
Cited in 6 cases, 1982–2009 · leading case: Aventura Sportswear, Ltd. v. Maloney Enter., Inc. (In Re Maloney Enter., Inc.), 37 B.R. 290 (Bankr. E.D. Ky. 1983).
Aventura Sportswear, Ltd. v. Maloney Enter., Inc. (In Re Maloney Enter., Inc.), 37 B.R. 290 (Bankr. E.D. Ky. 1983). · cites it 11× “§ 546 (c), and section 2-702 of the Uniform Commercial Code, as it appears in KRS 355.2-702. FINDINGS OF FACT: The facts, which are not in controversy and which are stipulated by the parties, are as follows: On November 24, 1982, the plaintiff, Aventura Sportswear, Limited…”
Am. Druggists' Ins. v. Jeanes Mech. Contractors, Inc. (In Re Jeanes Mech. Contractors Inc.), 32 B.R. 657 (Bankr. W.D. Ky. 1983). · cites it 4× “The surety admits that the sellers in question did not comply with KRS 355.2-702, which creates the statutory remedy of reclamation, but relies instead on a common law right of reclamation.”
In Re Kentucky Flush Door Corp., 28 B.R. 808 (Bankr. W.D. Ky. 1983). · cites it 2× “*809 Thereafter, on October 28,1982, the debt- or-in-possession, by counsel, filed an objection to the motion for reclamation rights alleging that the rights of said creditors were not perfected pursuant to KRS 355.2-702, that another creditor held a priority lien in inventory…”
Placer Coal, Inc. v. Rhondale Coal Servs. Co., 684 S.W.2d 25 (Ky. Ct. App. 1984). · cites it 5× “Placer contends it did not and argues that the appellees’ failure to retake possession of the coal within ten days of its delivery to Placer, as provided under KRS 355.2-702, prevented them from regaining title.”
A.J. Cunningham Packing Corp. v. Restaurant Servs., Inc. (In re Restaurant Servs., Inc.), 26 B.R. 215 (W.D. Ky. 1982). “Cunningham Packing Corporation (Cunningham), by counsel, seeking to reclaim property delivered during insolvency pursuant to the provisions of the Kentucky adoption of the Uniform Commercial Code, specifically KRS 355.2-702, and Section 546(c) of the Bankruptcy Code, 11 U.”
In Re Steele, 402 B.R. 775 (Bankr. W.D. Ky. 2009). “§ 546 , KRS 355.2-702(2) in In re Mel Golde Shoes, Inc.”
— Ky. Rev. Stat. § 355.2-702(1) — 1 case
Aventura Sportswear, Ltd. v. Maloney Enter., Inc. (In Re Maloney Enter., Inc.), 37 B.R. 290 (Bankr. E.D. Ky. 1983). “§ 546 (c), and section 2-702 of the Uniform Commercial Code, as it appears in KRS 355.2-702. FINDINGS OF FACT: The facts, which are not in controversy and which are stipulated by the parties, are as follows: On November 24, 1982, the plaintiff, Aventura Sportswear, Limited…”
— Ky. Rev. Stat. § 355.2-702(2) — 4 cases
Placer Coal, Inc. v. Rhondale Coal Servs. Co., 684 S.W.2d 25 (Ky. Ct. App. 1984). “Placer contends it did not and argues that the appellees’ failure to retake possession of the coal within ten days of its delivery to Placer, as provided under KRS 355.2-702, prevented them from regaining title.”
In Re Kentucky Flush Door Corp., 28 B.R. 808 (Bankr. W.D. Ky. 1983). “*809 Thereafter, on October 28,1982, the debt- or-in-possession, by counsel, filed an objection to the motion for reclamation rights alleging that the rights of said creditors were not perfected pursuant to KRS 355.2-702, that another creditor held a priority lien in inventory…”
Am. Druggists' Ins. v. Jeanes Mech. Contractors, Inc. (In Re Jeanes Mech. Contractors Inc.), 32 B.R. 657 (Bankr. W.D. Ky. 1983). “The surety admits that the sellers in question did not comply with KRS 355.2-702, which creates the statutory remedy of reclamation, but relies instead on a common law right of reclamation.”
In Re Steele, 402 B.R. 775 (Bankr. W.D. Ky. 2009). “§ 546 , KRS 355.2-702(2) in In re Mel Golde Shoes, Inc.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.