(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
(c) Made while the bank was insolvent;
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;
(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.
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