1. The act of favoring one person or thing over another; the person or thing so favored.
2. Priority of payment given to one or more creditors by a debtor; a creditor’s right to receive such priority.
3. Bankruptcy. PREFERENTIAL TRANSFER.
insider preference. A transfer of property by a bankruptcy debtor to an insider more than 90 days before but within one year after the filing of the bankruptcy petition. [Cases: Bankruptcy 2608(2). C.J.S. Bankruptcy §§ 138–139.]
liquidation preference. A preferred shareholder’s right, once the corporation is liquidated, to receive a specified distribution before common shareholders receive anything. [Cases: Corporations 629. C.J.S. Corporations §§ 875–878.]
voidable preference. See PREFERENTIAL TRANSFER.
