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| I. Introduction | 1 |
| II. Preferential Transfers | 5 |
| A. Objective Application. | 5 |
| B. Transfer Requirement. | 5 |
| C. Interest of the Debtor in Property Requirement. | 9 |
| D. Antecedent Debt Requirement. | 17 |
| E. Insolvency Requirement. | 18 |
| F. Transfer Made on or Within 90 Days Before the Petition Date. | 22 |
| G. Greater Percentage Test - Section 547(b)(5). | 25 |
| III. Preference Defenses | 28 |
| A. Purpose of Defenses. | 28 |
| B. Waiver of Defenses. | 29 |
| C. Burden of Proof. | 29 |
| D. Section 547(c)(1) - Contemporaneous Exchange for New Value. | 30 |
| E. Section 547(c)(2) - Ordinary Course of Business Defense. | 36 |
| F. Section 547(c)(3) - Relating Back. | 64 |
| G. Section 547(c)(4) - New Value Exception. | 66 |
| H. Section 547(c)(5) Floating Liens. | 72 |
| I. Section 547(c)(6) - Statutory Liens. | 75 |
| J. Section 547(c)(7) - Bona Fide Payments for Alimony, Maintenance, and Support. | 75 |
| K. Section 547(c)(8) - "De Minimis" Transfers in Consumer Cases. | 76 |
| L. Section 547(c)(9) Ð "De Minimis" Transfers in Nonconsumer Cases. | 77 |
| M. Alternate Repayment Schedule. | 77 |
| N. Venue/Limited Liability. | 78 |
| O. Preferential Liability in Construction Cases | 78 |
| P. Ten Practical Tips in Defending an Avoidance Action | 80 |
| Q. Avoiding Powers under Chapter 9 | 88 |
| IV. PLAN, PLEADING AND PROCESS ISSUES. | 92 |
| A. Introduction | 92 |
| B. Retention of Avoidance Actions in a Plan of Reorganization. | 92 |
| C. Observations with Respect to Plan Drafting. | 95 |
| D. Miscellaneous Chapter II Plan Issues. | 98 |
| E. Chapter 7 and Chapter 13 Issues. | 101 |
| F. Section 550 of the Bankruptcy Code. | 101 |
| G. Pleading and Process Issues. | 118 |
| H. Other Pleading Issues. | 122 |
