Section 588FG(2)(b)(i) and (b)(ii) impose independent tests: (b)(i) incorporates subjective elements of the creditor's actual knowledge and deductive processes, while (b)(ii) requires a purely objective assessment of whether a reasonable person in the creditor's circumstances would have had grounds for suspecting insolvency. A creditor who has subjectively lulled itself into a false sense of security through its own flawed deductive processes will not be protected under (b)(ii) if a reasonable person should have read the signs differently. The creditor's subjective appreciation of the facts is not relevant under (b)(ii) unless it reflects what would be expected of the reasonable person.
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