Section 286.3-864 - "Preference" defined(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; or2. 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.Effective:7/13/1984
Created 1984 Ky. Acts ch. 324, sec. 48, effective7/13/1984.