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Second Circuit Reinforces Bankruptcy Code Settlement Payment Safe Harbor

The Second Circuit affirmed the lower courts' judgment that a "transfer made … in connection with a securities contract … by a qualifying financial institution" was entitled "to the protection of ... §546 (e)'s safe harbor ...."

8 minute read November 01, 2024 at 12:11 AM
By
Michael L. Cook
Second Circuit Reinforces Bankruptcy Code Settlement Payment Safe Harbor

The Second Circuit affirmed the lower courts' judgment that a "transfer made … in connection with a securities contract … by a qualifying financial institution" was entitled "to the protection of [Bankruptcy] Code §546 (e)'s safe harbor, which pre-empts the trustee's state-law fraudulent [transfer] claims."

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