The Bankruptcy Code (“Code”) has at least nine so-called “safe harbor” (i.e., bankruptcy insulating) provisions for financial contracts. See, e.g.
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.
By
Michael L. Cook
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