Kentucky Revised Statutes

Ky. Rev. Stat. § 355.9-315 (2026)

Secured party's rights on disposition of collateral and in proceeds

✓ current as of May 2026

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(1) Except as otherwise provided in this article and in KRS 355.2-403(2):

(a) A security interest or agricultural lien continues in collateral notwithstanding sale, lease, license, exchange, or other disposition thereof unless the secured party authorized the disposition free of the security interest or agricultural lien; and

(b) A security interest attaches to any identifiable proceeds of collateral.

(2) Proceeds that are commingled with other property are identifiable proceeds:

(a) If the proceeds are goods, to the extent provided by KRS 355.9-336; and

(b) If the proceeds are not goods, to the extent that the secured party identifies the proceeds by a method of tracing, including application of equitable principles, that is permitted under law other than this article with respect to commingled property of the type involved.

(3) A security interest in proceeds is a perfected security interest if the security interest in the original collateral was perfected.

(4) A perfected security interest in proceeds becomes unperfected on the twenty-first day after the security interest attaches to the proceeds unless:

(a) The following conditions are satisfied:

1. A filed financing statement covers the original collateral;

2. The proceeds are collateral in which a security interest may be perfected by filing in the office in which the financing statement has been filed; and

3. The proceeds are not acquired with cash proceeds;

(b) The proceeds are identifiable cash proceeds; or

(c) The security interest in the proceeds is perfected other than under subsection (3) of this section when the security interest attaches to the proceeds or within twenty (20) days thereafter.

(5) If a filed financing statement covers the original collateral, a security interest in proceeds which remains perfected under subsection (4)(a) of this section becomes unperfected at the later of:

(a) When the effectiveness of the filed financing statement lapses under KRS 355.9-515 or is terminated under KRS 355.9-513; or

(b) The twenty-first day after the security interest attaches to the proceeds. Effective: July 1, 2001 History: Repealed and reenacted 2000 Ky. Acts ch. 408, sec. 55, effective July 1, 2001. -- Created 1958 Ky. Acts ch. 77, sec. 9-315, effective July 1, 1960.

Notes of Decisions

Cited in 5 cases (3 in the last 5 years), 1984–2025 · leading case: Madison Capital Co., LLC v. S & S SALVAGE, LLC, 765 F. Supp. 2d 923 (W.D. Ky. 2011).

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Madison Capital Co., LLC v. S & S SALVAGE, LLC, 765 F. Supp. 2d 923 (W.D. Ky. 2011). · cites it 2× “” Ky.Rev.Stat. Ann. § 355.9-315(l)(a) (West 2010).”

Tinsley & Groom v. West Kentucky Prod. Credit Ass'n (In Re Tinsley & Groom), 49 B.R. 85 (Bankr. W.D. Ky. 1984). · cites it 2× “KRS 355.9-315 clearly provides that a perfected security interest in collateral continues when such becomes part of a mass.”

HBKY, LLC v. Elk River Exp., LLC (E.D. Ky. 2023). · cites it 2× “Ky. Rev. Stat. § 355.9-315(1)(a). Elk River and Mr.”

HBKY, LLC v. Elk River Exp., LLC (6th Cir. 2025). · cites it 2× “” Ky. Rev. Stat. Ann. § 355.9-315 (1)(a). Thus, without the secured party’s consent, “a debtor cannot avoid or nullify a security interest in property by No.”

Dennis M. Espinoza v. Stock Yards Bank & Trust Co. (Ky. Ct. App. 2025). “Consequently, the bank has standing to assert a cause of action for conversion against Espinoza. There is no question in this case but that Espinoza, personally, exercised dominion and control over the disputed property to the exclusion of the bank, which had a right to possess…”

— Ky. Rev. Stat. § 355.9-315(1) — 1 case

Tinsley & Groom v. West Kentucky Prod. Credit Ass'n (In Re Tinsley & Groom), 49 B.R. 85 (Bankr. W.D. Ky. 1984). “KRS 355.9-315 clearly provides that a perfected security interest in collateral continues when such becomes part of a mass.”

— Ky. Rev. Stat. § 355.9-315(1)(a) — 1 case

HBKY, LLC v. Elk River Exp., LLC (E.D. Ky. 2023). “Ky. Rev. Stat. § 355.9-315(1)(a). Elk River and Mr.”

— Ky. Rev. Stat. § 355.9-315(l)(a) — 1 case

Madison Capital Co., LLC v. S & S SALVAGE, LLC, 765 F. Supp. 2d 923 (W.D. Ky. 2011). “” Ky.Rev.Stat. Ann. § 355.9-315(l)(a) (West 2010).”

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