(1) A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain a legal or equitable interest in the collateral sold.
(2) For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper from, a debtor that has sold an account or chattel paper, while the buyer’s security interest is unperfected, the debtor is deemed to have rights and title to the account or chattel paper identical to those the debtor sold.

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Terms Used In Kentucky Statutes 355.9-318

  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts

Effective: July 1, 2001
History: Repealed and reenacted 2000 Ky. Acts ch. 408, sec. 58, effective July 1, 2001.
— Amended 1986 Ky. Acts ch. 118, sec. 73, effective July 1, 1987. — Created 1958
Ky. Acts ch. 77, sec. 9-318, effective July 1, 1960.