Kentucky Revised Statutes

Ky. Rev. Stat. § 371.190 (2026)

Obligation of debtor not extinguished or affected by internal actions of

✓ current as of May 2026
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creditor. (1) The obligation of a debtor or obligor to pay or satisfy a debt, liability, or other obligation, including an obligation to pay interest, is not extinguished or otherwise adversely affected, in whole or in part, by any internal action or reporting of internal actions taken by the creditor or other obligee for purposes of the creditor or obligee's own financial, tax, or accounting records or affairs, including but not limited to treating the debt, liability, or other obligation as not collectible. (2) Nothing in this section shall preclude the debtor or obligor, in any event, from proving that it has fully or partially paid or otherwise satisfied the debt, liability, or other obligation in accordance with the terms of the debt, liability, or other obligation. Effective: July 14, 2018 History: Created 2018 Ky. Acts ch. 140, sec. 2, effective July 14, 2018.

Notes of Decisions
Cited in 2 cases (2 in the last 5 years), 2022–2022 · leading case: Spa Rentals, LLC v. Somerset-Pulaski Cnty. Airport Bd. (Ky. Ct. App. 2022).
Spa Rentals, LLC v. Somerset-Pulaski Cnty. Airport Bd. (Ky. Ct. App. 2022). “11 (2) Any party or parties to a contract or obligation described in subsection (1) of this section, and any party or parties who may assume or guarantee the contract or obligation, shall be bound, subject to KRS 371.190, for the rate of interest as is expressed in the contract,…”
Spa Rentals, LLC v. Somerset-Pulaski Cnty. Airport Bd. (Ky. Ct. App. 2022). “11 (2) Any party or parties to a contract or obligation described in subsection (1) of this section, and any party or parties who may assume or guarantee the contract or obligation, shall be bound, subject to KRS 371.190, for the rate of interest as is expressed in the contract,…”
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