KRS 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 wi thin 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 ban k 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.