This matter is before the Court on the plaintiff's Motion for Summary Judgment. The plaintiff, the trustee herein, seeks to avoid the lien of defendant Monticello Banking Company ("the Bank") pursuant to 11 U.S.C. '547. This Court has jurisdiction of this matter pursuant to 28 U.S.C. '1334(b); it is a core proceeding pursuant to 28 U.S.C. '157(b)(2)(K).

This action was commenced by the filing of the plaintiff's Complaint on March 22, 1991. Therein the plaintiff alleged that on April 17, 1990, prior to the filing of the debtors' bankruptcy petition on November 5, 1990, they executed and delivered to the Bank a Simple Interest Note and Security Agreement which granted a security interest in a 1988 Chevrolet Corsica. The Bank did not perfect its lien until August 28, 1990, when the title was presented to the Wayne County Court Clerk for recording of the lien on the certificate of title. The plaintiff maintains that this is an avoidable preference pursuant to 11 U.S.C. '547.

Perfection of a lien on a motor vehicle is accomplished by the notation of the lien on the certificate of title. KRS 186A.190. This is the sole and exclusive method of perfection of such liens. The record in this case demonstrates that the Bank did not perfect its lien on the vehicle in question until August 28, 1990. 11 U.S.C. '547(c)(3)(b) provides that the trustee may not avoid a transfer that creates a security interest in property acquired by the debtor that is perfected on or before ten days after the debtor receives possession of the property. Clearly the Bank's security interest was not perfected within ten days of the debtor's possession of the property.

In addition, 11 U.S.C. '547(e)(2)(B) provides that for the purposes of this section, a transfer is made at the time such transfer is perfected, if the transfer is perfected after ten days after the transfer takes effect between the transferor and transferee. Therefore, according to these two provisions the plaintiff may avoid the lien of the Bank pursuant to 11 U.S.C. '547(b), since the requisite elements are present: the transfer was for the benefit of a creditor, for on account of an antecedent debt, made while the debtor was insolvent, on or within 90 days before the date of filing of the petition. The cases cited by the plaintiff, Matter of Hamilton (Howard Thornton Ford, Inc. v. Fitzpatrick), 892 F.2d 1230 (5th Cir. 1990), and In re Arnette, 731 F.2d 358 (6th Cir. 1984) support such a finding.