{"data":{"id":"us-ky/krs-355.4-216","jurisdiction":"us-ky","citation":"KRS 355.4-216","heading":"Insolvency and preference.","body":"(1) If an item is in or comes into the possession of a payor or collecting bank that\nsuspends payment and the item has not been finally paid, the item must be returned\nby the receiver, trustee, or agent in charge of the closed bank to the presenting bank\nor the closed bank's customer.\n(2) If a payor bank finally pays an item and suspends payments without making a\nsettlement for the item with its customer or the presenting bank which settlement is\nor becomes final, the owner of the item has a preferred claim aga inst the payor\nbank.\n(3) If a payor bank gives or a collecting bank gives or receives a provisional settlement\nfor an item and thereafter suspends payments, the suspension does not prevent or\ninterfere with the settlement's becoming final if the finality o ccurs automatically\nupon the lapse of certain time or the happening of certain events.\n(4) If a collecting bank receives from subsequent parties settlement for an item which\nsettlement is or becomes final and the bank suspends payments without making a\nsettlement for the item with its customer which settlement is or becomes final, the\nowner of the item has a preferred claim against the collecting bank.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33540","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"b7550f24928fa78619d8b2b39cf55dd2175743e8ae9b5df035483e26d3b74512","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4-215","next":"us-ky/krs-355.4-301"},"notice":"GroundRules: Original legal text. Not legal advice."}