Insights

Defending Preferential Transfers: The Ordinary Business Terms Defense- Part II: Today's Ordinary Business Terms Defense

Defending Preferential Transfers, Ordinary Business Terms Defense

March 7, 2014 / Joseph M. Coleman

Under the pre-October 2005 version of Bankruptcy Code section 547(c)(2), a creditor wishing to shield a transfer from avoidance using an "ordinary course" defense had to prove, by a preponderance of the evidence, that the preferential transfer was: ( […]

Defending Preferential Transfers: The Ordinary Business Terms Defense- Part I: Background of the Ordinary Business Terms Defense

Defending Preferential Transfers, Ordinary Business Terms Defense

February 28, 2014 / Joseph M. Coleman

Credit managers are generally familiar with the "ordinary course of business" and "new value" defenses, which receive the predominant amount of attention in print and case authority.  However, the ordinary business terms defense can be just as effective […]