Category Archives: Preference
New York Modernizes the Debtor and Creditor Law
On December 6, 2019, the Governor signed a bill repealing Article 10 of the Debtor and Creditor Law (“DCL”) and replacing it with provisions contained in the Uniform Voidable Transactions Act (known until recently as the Uniform Fraudulent Transfer Act). Until now, New York State remained one of only two states that had not adopted the UVTA. The existing DCL provisions derived from the UFCA adopted by New York State in 1925. In this blog, I have made some preliminary observations about the new Article 10. Many of the changes bring Article 10 into line with Section 548 of the […]
Bankruptcy Preference Amendment(s) Effective February 19, 2020
On August 23, 2019, the Small Business Reorganization Act (H.R. 3311; S. 1091) (the “SBRA”) was signed into law. The law is effective 180-days following enactment, that is on February 19, 2020. Congress incorporated two important changes into the SBRA that may have broader implications beyond small business reorganizations as applicable to the recovery of “preferential transfers” under Section 547 of the Bankruptcy Code. First, a debtor or trustee is required to consider a party’s statutory defenses “based on reasonable due diligence in the circumstances of the case and taking into account a party’s known or reasonably knowable affirmative defenses” […]
