Kentucky Statutes 286.3-864 – “Preference” defined
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(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.
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.
(b) For or on account of an antecedent debt owed by the bank before such transfer was made;
Terms Used In Kentucky Statutes 286.3-864
- Director: means a member of the board of directors. See Kentucky Statutes 286.3-010
- Person: means a natural person, or any type or form of corporation, company, partnership, proprietorship, association, or other legal entity. See Kentucky Statutes 286.1-010
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Statute: A law passed by a legislature.
- Year: means calendar year. See Kentucky Statutes 446.010
(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.
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.