How Safe Is the Harbor?

Do the Bankruptcy Code safe-harbor provisions have some unintended consequences? Can they adequately address systemic risk in an environment of ever-changing complex financial transactions? A complete analysis.

38 minute read April 27, 2010 at 10:13 AM

Robert W. Dremluk

This article: 1) summarizes the evolution of safe harbor protections for financial transactions under the Bankruptcy Code; 2) briefly reviews case law developments involving ” 559 and 560 of the Bankruptcy Code; 3) identifies some key unresolved issues; and 4) concludes with some thoughts about whether or not these Bankruptcy Code safe-harbor provisions have some unintended consequences and can adequately address systemic risk in an environment of ever-changing complex financial transactions.

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