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What is Bankruptcy Preference and Security Interests about?

This document is a court case regarding whether an untimely perfected security interest securing an enabling loan can be protected from avoidance as a preference using the contemporaneous exchange exception. The court held that the contemporaneous exchange exception does not apply in this situation and that an enabling loan must be perfected within the 10-day grace period specified in section 547(c)(3) to be protected, in order to promote uniformity and prevent section 547(c)(3) from being rendered meaningl

Author

Scribd Government Docs

Language

EN