The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor’s acts or omissions.
Effective: July 1, 2001
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Terms Used In Kentucky Statutes 355.9-402

  • Contract: A legal written agreement that becomes binding when signed.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.

History: Repealed and reenacted 2000 Ky. Acts ch. 408, sec. 84, effective July 1, 2001.
— Amended 1998 Ky. Acts ch. 542, sec. 4, effective July 15, 1998. — Amended 1988
Ky. Acts ch. 132, sec. 8, effective March 31, 1988. — Amended 1986 Ky. Acts ch.
118, sec. 75, effective July 1, 1987. — Amended 1968 Ky. Acts ch. 193. — Amended
1966 Ky. Acts ch. 259, sec. 1. — Amended 1962 Ky. Acts ch. 83, sec. 10. — Created
1958 Ky. Acts ch. 77, sec. 9-402.

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