84-9-328. Priority of security interests in investment property. The following rules govern priority among conflicting security interests in the same investment property:
(1) A security interest held by a secured party having control of investment property under K.S.A. 2021 Supp. 84-9-106, and amendments thereto, has priority over a security interest held by a secured party that does not have control of the investment property.
(2) Except as otherwise provided in paragraphs (3) and (4), conflicting security interests held by secured parties each of which has control under K.S.A. 2021 Supp. 84-9-106, and amendments thereto, rank according to priority in time of:
(A) If the collateral is a security, obtaining control;
(B) if the collateral is a security entitlement carried in a securities account and: (i) If the secured party obtained control under K.S.A. 84-8-106(d)(1), and amendments thereto, the secured party's becoming the person for which the securities account is maintained;
(ii) if the secured party obtained control under K.S.A. 84-8-106(d)(2), and amendments thereto, the securities intermediary's agreement to comply with the secured party's entitlement orders with respect to security entitlements carried or to be carried in the securities account; or
(iii) if the secured party obtained control through another person under K.S.A. 84-8-106(d)(3), and amendments thereto, the time on which priority would be based under this paragraph if the other person were the secured party; or
(C) if the collateral is a commodity contract carried with a commodity intermediary, the satisfaction of the requirement for control specified in K.S.A. 2021 Supp. 84-9-106(b)(2), and amendments thereto, with respect to commodity contracts carried or to be carried with the commodity intermediary.
(3) A security interest held by a securities intermediary in a security entitlement or a securities account maintained with the securities intermediary has priority over a conflicting security interest held by another secured party.
(4) A security interest held by a commodity intermediary in a commodity contract or a commodity account maintained with the commodity intermediary has priority over a conflicting security interest held by another secured party.
(5) A security interest in a certificated security in registered form which is perfected by taking delivery under K.S.A. 2021 Supp. 84-9-313(a), and amendments thereto and not by control under K.S.A. 2021 Supp. 84-9-314, and amendments thereto, has priority over a conflicting security interest perfected by a method other than control.
(6) Conflicting security interests created by a broker, securities intermediary, or commodity intermediary which are perfected without control under K.S.A. 2021 Supp. 84-9-106 and amendments thereto rank equally.
(7) In all other cases, priority among conflicting security interests in investment property is governed by K.S.A. 2021 Supp. 84-9-322 and 84-9-323, and amendments thereto.
History: L. 2000, ch. 142, ยง 48; July 1, 2001.
Structure Kansas Statutes
Chapter 84 - Uniform Commercial Code
Article 9 - Secured Transactions
84-9-102 Definitions and index of definitions.
84-9-103 Purchase-money security interest; application of payments; burden of establishing.
84-9-104 Control of deposit account.
84-9-105 Control of electronic chattel paper.
84-9-106 Control of investment property.
84-9-107 Control of letter-of-credit right.
84-9-108 Sufficiency of description.
84-9-110 Security interests arising under Article 2 or 2a.
84-9-201 General effectiveness of security agreement.
84-9-202 Title to collateral immaterial.
84-9-204 After-acquired property; future advances.
84-9-205 Use or disposition of collateral permissible.
84-9-206 Security interest arising in purchase or delivery of financial asset.
84-9-207 Rights and duties of secured party having possession or control of collateral.
84-9-208 Additional duties of secured party having control of collateral.
84-9-209 Duties of secured party if account debtor has been notified of assignment.
84-9-210 Request for accounting; request regarding list of collateral or statement of account.
84-9-301 Law governing perfection of priority of security interests.
84-9-302 Law governing perfection and priority of agricultural liens.
84-9-304 Law governing perfection and priority of security interests in deposit accounts.
84-9-305 Law governing perfection and priority of security interests in investment property.
84-9-306 Law governing perfection and priority of security interests in letter-of-credit rights.
84-9-308 When security interest or agricultural lien is perfected; continuity of perfection.
84-9-309 Security interest perfected upon attachment.
84-9-313 When possession by or delivery to secured party perfects security interest without filing.
84-9-314 Perfection by control.
84-9-315 Secured party's rights on disposition of collateral and in proceeds.
84-9-316 Continued perfection of security interest following change in governing law.
84-9-317 Interests that take priority over or take free of security interest or agricultural lien.
84-9-319 Rights and title of consignee with respect to creditors and purchasers.
84-9-321 Licensee of general intangible and lessee of goods in ordinary course of business.
84-9-324 Priority of purchase-money security interests.
84-9-325 Priority of security interests in transferred collateral.
84-9-326 Priority of security interests created by new debtor; multiple original debtors.
84-9-327 Priority of security interests in deposit account.
84-9-328 Priority of security interests in investment property.
84-9-329 Priority of security interests in letter-of-credit right.
84-9-330 Priority of purchaser of chattel paper or instrument.
84-9-332 Transfer of money; transfer of funds from deposit account.
84-9-333 Priority of certain liens arising by operation of law.
84-9-334 Priority of security interests in fixtures and crops.
84-9-337 Priority of security interests in goods covered by certificate of title.
84-9-339 Priority subject to subordination.
84-9-340 Effectiveness of right of recoupment or set-off against deposit account.
84-9-341 Bank's rights and duties with respect to deposit account.
84-9-342 Bank's right to refuse to enter into or disclose existence of control agreement.
84-9-401 Alienability of debtor's rights.
84-9-402 Secured party not obligated on contract of debtor or in tort.
84-9-403 Agreement not to assert defenses against assignee.
84-9-404 Rights acquired by assignee; claims and defenses against assignee.
84-9-405 Modification of assigned contract.
84-9-409 Restrictions on assignment of letter-of-credit rights ineffective.
84-9-503 Same; name of debtor.
84-9-504 Indication of collateral.
84-9-506 Effect of errors or omissions.
84-9-508 Effectiveness of financing statement if new debtor becomes bound by security agreement.
84-9-509 Persons entitled to file a record.
84-9-510 Effectiveness of filed record.
84-9-511 Secured party of record.
84-9-512 Amendment of financing statement.
84-9-513 Termination statement.
84-9-514 Assignment of powers of secured party of record.
84-9-516 What constitutes filing; effectiveness of filing.
84-9-517 Effect of indexing errors.
84-9-518 Filing information statements identifying inaccurate or wrongfully filed records; contents.
84-9-520 Acceptance and refusal to accept record.
84-9-521 Written initial financing statement and amendment; form.
84-9-522 Maintenance and destruction of records.
84-9-523 Information from filing office; sale or license of records.
84-9-524 Delay by filing office.
84-9-602 Waiver and variance of rights and duties.
84-9-603 Agreement on standards concerning rights and duties.
84-9-604 Procedure if security agreement covers real property or fixtures.
84-9-605 Unknown debtor or secondary obligor.
84-9-606 Time of default for agricultural lien.
84-9-607 Collection and enforcement by secured party.
84-9-610 Disposition of collateral after default.
84-9-611 Notification before disposition of collateral.
84-9-612 Timelines of notification before disposition of collateral.
84-9-613 Contents and form of notification before disposition of collateral; general.
84-9-615 Application of proceeds of disposition; liability for deficiency and right to surplus.
84-9-616 Explanation of calculation of surplus or deficiency.
84-9-617 Rights of transferee of collateral.
84-9-619 Transfer of record or legal title.
84-9-621 Notification of proposal to accept collateral.
84-9-622 Effect of acceptance of collateral.
84-9-623 Right to redeem collateral.
84-9-625 Judicial remedies for secured party noncompliance; damages.
84-9-627 Determination of whether conduct was commercially reasonable.
84-9-628 Nonliability and limitation on liability of secured party.
84-9-703 Security interest perfected before effective date.
84-9-704 Security interest unperfected before effective date.
84-9-705 Effectiveness of action taken before effective date.
84-9-706 When initial financing statement suffices to continue effectiveness of financing statement.
84-9-707 Pre-effective-date financing statement; applicable law; amendment.
84-9-708 Persons entitled to file initial financing statement or continuation statement.
84-9-801 Specifying sections that are part of article 9 of the uniform act.
84-9-803 Security interest perfected before effective date.
84-9-804 Security interest unperfected before effective date.
84-9-805 Effectiveness of action taken before effective date.
84-9-806 When initial financing statement suffices to continue effectiveness of financing statement.
84-9-807 Amendment of pre-effective date financing statement.
84-9-808 Person entitled to file initial financing statement or continuation statement.