Bluegrass Ford-Mercury, Inc. v. Farmers National Bank of Cynthiana

RALPH B. GUY, Jr., Circuit Judge.

Defendant, Farmers National Bank of Cynthiana (Farmers), appeals the district court’s decision, which affirmed the bankruptcy court’s order, setting aside certain liens held on Bluegrass Ford-Mercury’s (Bluegrass or debtor) property as preferential and allowing Bluegrass to recover certain payments made during the preference period from the bank.

Farmers argues that it was a perfected, secured creditor and, thus, did not receive any preferential transfers. Additionally, Farmers argues that the plaintiff has failed to prove all of the essential elements of a…