Kentucky Revised Statutes

Ky. Rev. Stat. § 355.9-327 (2026)

Priority of security interests in deposit account

✓ current as of May 2026

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The following rules govern priority among conflicting security interests in the same deposit account:

(1) A security interest held by a secured party having control of the deposit account under KRS 355.9-104 has priority over a conflicting security interest held by a secured party that does not have control.

(2) Except as otherwise provided in subsections (3) and (4) of this section, security interests perfected by control under KRS 355.9-314 rank according to priority in time of obtaining control.

(3) Except as otherwise provided in subsection (4) of this section, a security interest held by the bank with which the deposit account is maintained has priority over a conflicting security interest held by another secured party.

(4) A security interest perfected by control under KRS 355.9-104(1)(c) has priority over a security interest held by the bank with which the deposit account is maintained. Effective: July 1, 2001 History: Created 2000 Ky. Acts ch. 408, sec. 67, effective July 1, 2001.

Notes of Decisions

Cited in 1 case, 2006–2006 · 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). “Addressing the priority of conflicting security interests in a deposit account, KRS 355.9-327 provides as follows: (1) A security interest held by a secured party having control of the deposit account under KRS 355.”

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