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286.3-864 "Preference" defined.
(1)
(2)
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.
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: July 13, 1984
History: Created 1984 Ky. Acts ch. 324, sec. 48, effective July 13, 1984.
Formerly codified as KRS 287.864.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts
ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the
Kentucky Financial Services Code, KRS Chapter 286, and KRS references within
this statute have been adjusted to conform with the 2006 renumbering of that code.
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