Kentucky Revised Statutes

Ky. Rev. Stat. § 355.9-610 (2026)

Disposition of collateral after default

✓ current as of May 2026

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(1) After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.

(2) Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by one (1) or more contracts, as a unit or in parcels, and at any time and place and on any terms.

(3) A secured party may purchase collateral:

(a) At a public disposition; or

(b) At a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.

(4) A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like which by operation of law accompany a voluntary disposition of property of the kind subject to the contract.

(5) A secured party may disclaim or modify warranties under subsection (4) of this section:

(a) In a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition; or

(b) By communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.

(6) A record is sufficient to disclaim warranties under subsection (5) of this section if it indicates "There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition" or uses words of similar import.

(7) The acquisition of a repossession title by a secured party shall not be deemed a disposition of collateral under this section. Effective: July 1, 2001 History: Created 2000 Ky. Acts ch. 408, sec. 128, effective July 1, 2001.

Notes of Decisions

Cited in 4 cases (2 in the last 5 years), 2005–2024 · leading case: Am. Coal Terminal, Inc. v. Midcap Funding Xvii Trust (Ky. Ct. App. 2024).

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Am. Coal Terminal, Inc. v. Midcap Funding Xvii Trust (Ky. Ct. App. 2024). · cites it 4× “With that in mind, KRS 355.9-610 enables a secured party such as MidCap, through a nonjudicial sale, to “sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing” in the…”

Marion Puckett v. U.S. Bank, N.A. (Ky. Ct. App. 2023). · cites it 3× “9-610 enables a secured party to “sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing” in the event the debtor defaults on the loan.”

Fifth Third Bank v. Miller, 767 F. Supp. 2d 735 (E.D. Ky. 2011). “With respect to the regulation of secured transactions, Kentucky has adopted the Uniform Commercial Code (“U.”

Layne v. Bank One KY (6th Cir. 2005). “” Ky. Rev. Stat. Ann. § 355.9-610 . The purpose of the provision is to protect the debtor’s interest by ensuring he will “receive the market price of his collateral.”

— Ky. Rev. Stat. § 355.9-610(1) — 2 cases

Marion Puckett v. U.S. Bank, N.A. (Ky. Ct. App. 2023). “9-610 enables a secured party to “sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing” in the event the debtor defaults on the loan.”

Am. Coal Terminal, Inc. v. Midcap Funding Xvii Trust (Ky. Ct. App. 2024). “With that in mind, KRS 355.9-610 enables a secured party such as MidCap, through a nonjudicial sale, to “sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing” in the…”

— Ky. Rev. Stat. § 355.9-610(2) — 2 cases

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