Section 355.9-208 - [Effective 1/1/2025] Additional duties of secured party having control of collateral(1) This section applies to cases in which: (a) There is no outstanding secured obligation; and(b) The secured party is not committed to make advances, incur obligations, or otherwise give value.(2) Within ten (10) days after receiving a signed demand by the debtor: (a) A secured party having control of a deposit account under KRS 355.9-104(1)(b) shall send to the bank with which the deposit account is maintained a signed record that releases the bank from any further obligation to comply with instructions originated by the secured party;(b) A secured party having control of a deposit account under KRS 355.9-104(1)(c) shall: 1. Pay the debtor the balance on deposit in the deposit account; or2. Transfer the balance on deposit into a deposit account in the debtor's name;(c) A secured party, other than a buyer, having control under KRS 355.9-105 of an authoritative electronic copy of a record evidencing chattel paper shall transfer control of the electronic copy to the debtor or a person designated by the debtor ;
(d) A secured party having control of investment property under KRS 355.8-106(4)(b) or 355.9-106(2) shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained a signed record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party;(e) A secured party having control of a letter-of-credit right under KRS 355.9-107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party a signed release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party;(f) A secured party having control under Section 38 of this Act of an authoritative electronic copy of an electronic document shall transfer control of the electronic copy to the debtor or a person designated by the debtor; (g) A secured party having control under Section 47 of this Act of electronic money shall transfer control of the electronic copy to the debtor or a person designated by the debtor; and (h) A secured party having control under Section 98 of this Act of a controllable electronic record, other than a buyer of a controllable account or controllable payment intangible evidenced by the controllable electronic record, shall transfer control of the controllable electronic record to the debtor or a person designated by the debtor.Amended by 2024 Ky. Acts ch. 10,§ 53, eff. 1/1/2025.Amended by 2012 Ky. Acts ch. 132,§ 64, eff. 7/11/2012. Repealed and reenacted 2001, Ky. Acts ch. 119, sec. 5, effective 7/1/2001. -- Repealed and reenacted 2000, Ky. Acts ch. 408, sec. 38, effective 7/1/2001. --Created 1958 Ky. Acts ch. 77, sec. 9-208, effective 7/1/1960.This section is set out more than once due to postponed, multiple, or conflicting amendments.