Which of the following transfers by a debtor, within ninety days of filing for bankruptcy, could be set aside as a preferential payment?
　　a.Borrowing money from a bank secured by giving a mortgage on business property.
　　b.Prepaying an installment loan on inventory.
　　c.Making a gift to charity.
　　d.Paying a business utility bill.
　　Answer:B
　　Choice "B" is correct. A transfer of the debtor's property to or for the benefit of a creditor for an antecedent debt at a time when the debtor was insolvent and within 90 days of filing the bankruptcy petition constitutes a preference if the transfer gives the transferee more than the transferee would have obtained under the Bankruptcy Code. Prepayment of an installment loan falls within this description. This transaction does not qualify for the exception for payment of ordinary business because the prepayment is not under the usual terms of the contract.
　　Choice "c" is incorrect. Although the gift to the charity here is voidable, it is voidable as a fraudulent transfer (a trustee in bankruptcy has the power to void transfers of property where the debtor did not receive reasonably equivalent value). This transaction is not a preference because a preference occurs where there is a payment of an antecedent debt.
　　Choice "d" is incorrect. A transfer is not voidable as a preference to the extent that it was made in the ordinary course of the business of the debtor, according to the ordinary business terms, and for the purpose of repaying a debt incurred in the ordinary course of the debtor's business. Payment of a utility bill falls within this exception.
　　Choice "a" is incorrect. A transfer is not voidable by the trustee where there is a contemporaneous exchange for value. Here, money was given in exchange for the mortgage.