Preference

The act of an insolvent debtor who, in distributing his property or in assigning it for the benefit of his creditors, pays or secures to one or more creditors the full amount of their claims or a larger amount than they would be entitled to receive on a pro rata distribution. Also the right held by a creditor, in virtue of some lien or security, to be preferred above others (i. e., paid first) out of the debtor's assets constituting the fund for creditors.

See Pirie v. Chicago Title & Trust Co.., 182 U. S. 438, 21 Sup. Ct 906, 45 In Ed 1171; Ashby v. Steere, 2 Fed. Cas. 15; Chad-bourne v. Harding, 80 Me. 580, 16 Atl. 248; Chism v. Citizens' Bank, 77 Miss. 599, 27 South. 637; In re Ratliff (D. C.) 107 Fed. 80; In re Stevens, 38 Minn. 432, 38 N. W. 111.