Kentucky Revised Statutes

Ky. Rev. Stat. § 355.9-104 (2026)

Control of deposit account

✓ current as of May 2026

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(1) A secured party has control of a deposit account if:

(a) The secured party is the bank with which the deposit account is maintained;

(b) The debtor, secured party, and bank have agreed in a signed record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the deposit account without further consent by the debtor;

(d) Another person, other than the debtor:

1. Has control of the deposit account and acknowledges that it has control on behalf of the secured party; or

2. Obtains control of the deposit account after having acknowledged that it will obtain control of the deposit account on behalf of the secured party.

(2) A secured party that has satisfied subsection (1) of this section has control, even if the debtor retains the right to direct the disposition of funds from the deposit account. Effective: January 1, 2025 History: Amended 2024 Ky. Acts ch. 10, sec. 45, effective January 1, 2025. -- Repealed and reenacted 2000 Ky. Acts ch. 408, sec. 24, effective July 1, 2001. -- Amended 1986 Ky. Acts ch. 118, sec. 56, effective July 1, 1987. -- Created 1958 Ky. Acts ch. 77, sec. 9-104, effective July 1, 1960.

Notes of Decisions

Cited in 8 cases, 1978–2014 · leading case: Kentucky Highlands Inv. Corp. v. Bank of Corbin, Inc., 217 S.W.3d 851 (Ky. Ct. App. 2006).

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Kentucky Highlands Inv. Corp. v. Bank of Corbin, Inc., 217 S.W.3d 851 (Ky. Ct. App. 2006). · cites it 5× “KRS 355.9-104 provides as follows: (1) A secured party has control of a deposit account if: (a) The secured party is the bank with which the deposit account is maintained; (b) The debtor, secured party, and bank have agreed in an authenticated record that the bank will comply…”

Delphi Auto. Sys., LLC v. Capital Cmty. Econ./Indus. Dev. Corp., 434 S.W.3d 481 (Ky. 2014). · cites it 2× “Prior to that time, former KRS 355.9-104, entitled “Transactions excluded from article,” included subsection (5), which identified one form of excluded transaction as “a transfer by a government or governmental subdivision or agency.”

Bank of Lexington v. Jack Adams Aircraft Sales, Inc., 570 F.2d 1220 (5th Cir. 1978). “Because the security agreement was filed with the FAA, our inquiry must once again begin with the provisions of the Federal Aviation Act. The Act preempts only that portion of state law which conflicts with its provisions.”

Meade v. Richardson Fuel, Inc., 166 S.W.3d 55 (Ky. Ct. App. 2005). “The collateral is deposit accounts, electronic chattel paper, investment property, or letter-of-credit rights, and the secured party has control under KRS 355.9-104, 355.9-105, 355.9-106, or 355.”

In Re Megamarket of Lexington, Inc., 207 B.R. 527 (Bankr. E.D. Ky. 1997). · cites it 2× “9-104(7), provides: This Article [Article 9 of the Uniform Commercial Code] does not apply: (7) To a transfer of an interest in or claim in or under any poKcy of insurance, except as provided with respect to proceeds (KRS 355.”

Lawson v. Bank One, Lexington, N.A., 35 F. Supp. 2d 961 (E.D. Ky. 1997). · cites it 2× “Said statute provides in part, (1) Except as otherwise provided in KRS 355.9-104 on excluded transactions, 1 this article applies: (a) To any transaction (regardless of its form) which is intended to create a security interest in personal property or fixtures including goods,…”

Cooper v. First Citizens Bank (In Re Jones), 186 B.R. 71 (Bankr. W.D. Ky. 1995). “However, Debt- or’s transaction with First Citizens involved the granting of an interest in real property, which is specifically exempted from the scope of Article 9 by KRS 355.9-104(10). Chapter 382 of the Kentucky Revised Statutes governs conveyances and encumbrances of real…”

Flener v. Alexander (In Re Alexander), 429 B.R. 876 (Bankr. W.D. Ky. 2010). “9-312(2)(a) and KRS 355.9-104(1). The Bank’s security interest is set forth in the Note, the Security Agreement and the Assignment.”

— Ky. Rev. Stat. § 355.9-104(1) — 3 cases

Kentucky Highlands Inv. Corp. v. Bank of Corbin, Inc., 217 S.W.3d 851 (Ky. Ct. App. 2006). “KRS 355.9-104 provides as follows: (1) A secured party has control of a deposit account if: (a) The secured party is the bank with which the deposit account is maintained; (b) The debtor, secured party, and bank have agreed in an authenticated record that the bank will comply…”

— Ky. Rev. Stat. § 355.9-104(10) — 1 case

— Ky. Rev. Stat. § 355.9-104(7) — 1 case

In Re Megamarket of Lexington, Inc., 207 B.R. 527 (Bankr. E.D. Ky. 1997). “9-104(7), provides: This Article [Article 9 of the Uniform Commercial Code] does not apply: (7) To a transfer of an interest in or claim in or under any poKcy of insurance, except as provided with respect to proceeds (KRS 355.”

— Ky. Rev. Stat. § 355.9-104(c) — 1 case

— Ky. Rev. Stat. § 355.9-104(e) — 1 case

Delphi Auto. Sys., LLC v. Capital Cmty. Econ./Indus. Dev. Corp., 434 S.W.3d 481 (Ky. 2014). “Prior to that time, former KRS 355.9-104, entitled “Transactions excluded from article,” included subsection (5), which identified one form of excluded transaction as “a transfer by a government or governmental subdivision or agency.”

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