Section 355.9-317 - [Effective 1/1/2025] Interests that take priority over or take free of security interest or agricultural lien(1) A security interest or agricultural lien is subordinate to the rights of: (a) A person entitled to priority under KRS 355.9-322; and(b) Except as otherwise provided in subsection (5) of this section, a person that becomes a lien creditor before the earlier of the time: 1. The security interest or agricultural lien is perfected; or2. One (1) of the conditions specified in KRS 355.9-203(2)(c) is met and a financing statement covering the collateral is filed.(2) Except as otherwise provided in subsection (5) of this section, a buyer, other than a secured party, of goods, instruments, tangible documents, or a certificated security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.(3) Except as otherwise provided in subsection (5) of this section, a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.(4) Subject to subsections (6) to (9) of this section, a licensee of a general intangible or a buyer, other than a secured party, of collateral other than electronic money, goods, instruments, tangible documents, or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.(5) Except as otherwise provided in KRS 355.9-320 and 355.9-321, if a person files a financing statement with respect to a purchase-money security interest before or within twenty (20) days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor which arise between the time the security interest attaches and the time of filing.(6) A buyer, other than a secured party, of chattel paper takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and: (a) Receives delivery of each authoritative tangible copy of the record evidencing the chattel paper; and (b) If each authoritative electronic copy of the record evidencing chattel paper can be subjected to control under Section 46 of this Act, obtains control of each authoritative electronic copy. (7) A buyer of an electronic document takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and, if each authoritative electronic copy of the document can be subjected to control under Section 38 of this Act, obtains control of each authoritative electronic copy. (8) A buyer of a controllable electronic record takes free of a security interest if without knowledge of the security interest and before it is perfected, the buyer gives value and obtains control of the controllable electronic record (9) A buyer, other than a secured party, of a controllable account or a controllable payment intangible takes free of a security interest if without knowledge of the security interest and before it is perfected, the buyer gives value and obtains control of the controllable account or controllable payment intangible. Amended by 2024 Ky. Acts ch. 10,§ 67, eff. 1/1/2025.Amended by 2012 Ky. Acts ch. 132,§ 73, eff. 7/11/2012. Repealed and reenacted 2000, Ky. Acts ch. 408, sec. 57, effective 7/1/2001. -- Created 1958 Ky. Acts ch. 77, sec. 9-317, effective 7/1/1960.This section is set out more than once due to postponed, multiple, or conflicting amendments.