Defending the Preference and Fraudulent Transfer Safe Harbor

As shown in this article, some lower courts have inconsistently enforced the safe harbor provisions in the preference and fraudulent transfer context, generating costly litigation for the asserted cause of creditor recovery.

25 minute readFebruary 23, 2010 at 10:36 AM
By
Michael L. Cook
Defending the Preference and Fraudulent Transfer Safe Harbor

The Bankruptcy Code (“Code”) has at least nine so-called “safe harbor” (i.e., bankruptcy insulating) provisions for financial contracts.See, e.g., ” 555 (securities contracts); ' 556 (commodities

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