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KRS 286.3-864

"Preference" defined

Effective: July 13, 1984 History: Created 1984 Ky

(1) A preference is a transfer of any of the property of the bank:

(a) To or for the benefit of a creditor;

(b) For or on account of an antecedent debt owed by the bank before such transfer was made;

(c) Made while the bank was insolvent;

(d) Made:

1. On or within ninety (90) days before the date of the closing of a bank under KRS 286.3-854 if such creditor had reasonable cause to believe the bank was insolvent at the time of such transfer; or 2. On or within one (1) year before the date of the closing of a bank under KRS 286.3-854 if such creditor was a director, officer or person in control of the state bank and had reasonable cause to believe the bank was insolvent at the time of such transfer; and (e) That enables such creditor to obtain a greater percentage of his debt than some other creditor of the same class.

(2) A preference does not include a transfer:

(a) To the extent that such transfer was a substantially contemporaneous exchange for new value given to the bank; or (b) To the extent that such transfer was made in payment of a debt incurred in the ordinary course of the bank's business made not later than forty-five (45) days after such debt was incurred.

Official source: Kentucky General Assembly. Reproduced from public-domain Kentucky statutes; confirm against the official source for the current text. Not legal advice.