355.2A -308 Special rights of creditors. (1) A creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract as void if, as against the creditor, retention of possession by the lessor is fraudulent under any statute or rule of law, but retention of possession in good faith and current course of trade by the lessor for a commercially reasonable time after the lease contract becomes enforceable is not fraudulent. (2) Nothing in this article impairs the rights of creditors of a lessor if the lease contract: (a) Beco mes enforceable, not in current course of trade but in satisfaction of or as security for a pre -existing claim for money, security, or the like; and (b) Is made under circumstances which under any statute or rule of law apart from this article would consti tute the transaction a fraudulent transfer or voidable preference. (3) A creditor of a seller may treat a sale or an identification of goods to a contract for sale as void if, as against the creditor, retention of possession by the seller is fraudulent und er any statute or rule of law, but retention of possession of the goods pursuant to a lease contract entered into by the against the creditor, retention of possession by the seller is fraudulent und er any statute or rule of law, but retention of possession of the goods pursuant to a lease contract entered into by the seller as lessee and the buyer as lessor in connection with the sale or identification of the goods is not fraudulent if the buyer boug ht for value and in good faith. Effective: January 1, 1991 History: Created 1990 Ky. Acts ch. 363, sec. 38, effective January 1, 1991.
Kentucky Legal Code