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84-9-327. Priority of security interests in deposit account. The following rules govern priority among conflicting security interests in the same deposit account:

(1) A security interest held by a secured party having control of the deposit account under K.S.A. 2024 Supp. 84-9-104, and amendments thereto, has priority over a conflicting security interest held by a secured party that does not have control.

(2) Except as otherwise provided in paragraphs (3) and (4), security interests perfected by control under K.S.A. 2024 Supp. 84-9-314, and amendments thereto, rank according to priority in time of obtaining control.

(3) Except as otherwise provided in paragraph (4), a security interest held by the bank with which the deposit account is maintained has priority over a conflicting security interest held by another secured party.

(4) A security interest perfected by control under K.S.A. 2024 Supp. 84-9-104(a)(3), and amendments thereto, has priority over a security interest held by the bank with which the deposit account is maintained.

History: L. 2000, ch. 142, ยง 47; July 1, 2001.

Law Review and Bar Journal References:

"Revised Article 9 in Kansas," Hon. John K. Pearson, 51 K.L.R. 769, 813 (2003).

"A Brief Overview of Revised Article 9 in Kansas," John K. Pearson and J. Scott Pohl, 72 J.K.B.A. No. 8, 22 (2003).


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