Source: http://www.law.cornell.edu/uscode/text/11/548?quicktabs_8=1
Timestamp: 2015-01-30 04:06:32
Document Index: 68684225

Matched Legal Cases: ['§ 548', '§ 548', '§ 548', '§ 5', '§ 394', '§ 283', '§ 104', '§ 204', '§ 501', '§ 2', '§ 907', '§ 1402', '§ 1402', '§ 1402', '§ 1402', '§ 1402', '§ 907', '§ 907', '§ 907', '§ 907', '§ 1402', '§ 3', '§ 2', '§ 501', '§ 501', '§ 204', '§ 104', '§ 463', '§ 463', '§ 463', '§ 463', '§ 463', '§ 463', '§ 394']

11 U.S. Code § 548 - Fraudulent transfers and obligations | LII / Legal Information Institute
U.S. Code › Title 11 › Chapter 5 › Subchapter III › § 548 11 U.S. Code § 548 - Fraudulent transfers and obligations
The trustee may avoid any transfer (including any transfer to or for the benefit of an insider under an employment contract) of an interest of the debtor in property, or any obligation (including any obligation to or for the benefit of an insider under an employment contract) incurred by the debtor, that was made or incurred on or within 2 years before the date of the filing of the petition, if the debtor voluntarily or involuntarily—
made such transfer or incurred such obligation with actual intent to hinder, delay, or defraud any entity to which the debtor was or became, on or after the date that such transfer was made or such obligation was incurred, indebted; or
made such transfer to or for the benefit of an insider, or incurred such obligation to or for the benefit of an insider, under an employment contract and not in the ordinary course of business.
A transfer of a charitable contribution to a qualified religious or charitable entity or organization shall not be considered to be a transfer covered under paragraph (1)(B) in any case in which—
the amount of that contribution does not exceed 15 percent of the gross annual income of the debtor for the year in which the transfer of the contribution is made; or
the contribution made by a debtor exceeded the percentage amount of gross annual income specified in subparagraph (A), if the transfer was consistent with the practices of the debtor in making charitable contributions.
“value” means property, or satisfaction or securing of a present or antecedent debt of the debtor, but does not include an unperformed promise to furnish support to the debtor or to a relative of the debtor;
a commodity broker, forward contract merchant, stockbroker, financial institution, financial participant, or securities clearing agency that receives a margin payment, as defined in section 101, 741, or 761 of this title, or settlement payment, as defined in section 101 or 741 of this title, takes for value to the extent of such payment;
a repo participant or financial participant that receives a margin payment, as defined in section 741 or 761 of this title, or settlement payment, as defined in section 741 of this title, in connection with a repurchase agreement, takes for value to the extent of such payment;
a swap participant or financial participant that receives a transfer in connection with a swap agreement takes for value to the extent of such transfer; and
a master netting agreement participant that receives a transfer in connection with a master netting agreement or any individual contract covered thereby takes for value to the extent of such transfer, except that, with respect to a transfer under any individual contract covered thereby, to the extent that such master netting agreement participant otherwise did not take (or is otherwise not deemed to have taken) such transfer for value.
In this section, the term “charitable contribution” means a charitable contribution, as that term is defined in section 170(c) of the Internal Revenue Code of 1986, if that contribution—
is made by a natural person; and
a financial instrument (as that term is defined in section 731(c)(2)(C) of the Internal Revenue Code of 1986); or
In this section, the term “qualified religious or charitable entity or organization” means—
an entity described in section 170(c)(1) of the Internal Revenue Code of 1986; or
an entity or organization described in section 170(c)(2) of the Internal Revenue Code of 1986.
For the purposes of this subsection, a transfer includes a transfer made in anticipation of any money judgment, settlement, civil penalty, equitable order, or criminal fine incurred by, or which the debtor believed would be incurred by—
any violation of the securities laws (as defined in section 3(a)(47) of the Securities Exchange Act of 1934 (15 U.S.C. 78c
(a)(47))), any State securities laws, or any regulation or order issued under Federal securities laws or State securities laws; or
fraud, deceit, or manipulation in a fiduciary capacity or in connection with the purchase or sale of any security registered under section 12 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78l and 78o
(d)) or under section 6 of the Securities Act of 1933 (15 U.S.C. 77f).
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2600; Pub. L. 97–222, § 5,July 27, 1982, 96 Stat. 236; Pub. L. 98–353, title III, §§ 394, 463,July 10, 1984, 98 Stat. 365, 378; Pub. L. 99–554, title II, § 283(n),Oct. 27, 1986, 100 Stat. 3117; Pub. L. 101–311, title I, § 104, title II, § 204,June 25, 1990, 104 Stat. 268, 269; Pub. L. 103–394, title V, § 501(b)(5),Oct. 22, 1994, 108 Stat. 4142; Pub. L. 105–183, §§ 2, 3(a),June 19, 1998, 112 Stat. 517; Pub. L. 109–8, title IX, § 907(f), (o)(4)–(6), title XIV, § 1402,Apr. 20, 2005, 119 Stat. 177, 182, 214.)
(d)(2) is modified to reflect general application of a provision contained in section 766 of the Senate amendment with respect to commodity brokers. In particular, section 548(d)(2)(B) of the House amendment makes clear that a commodity broker who receives a margin payment is considered to receive the margin payment in return for “value” for purposes of section 548.
If a transferee’s only liability to the trustee is under this section, and if he takes for value and in good faith, then subsection (c) grants him a lien on the property transferred, or other similar protection.
Subsection (d) specifies that for the purposes of fraudulent transfer section, a transfer is made when it is valid against a subsequent bona fide purchaser. If not made before the commencement of the case, it is considered made immediately before then. Subsection (d) also defines “value” to mean property, or the satisfaction or securing of a present or antecedent debt, but does not include an unperformed promise to furnish support to the debtor or a relative of the debtor.
Sections 170(c) and 731(c)(2)(C) of the Internal Revenue Code of 1986, referred to in subsec. (d)(3), (4), are classified to sections 170
(c) and 731
(c)(2)(C), respectively, of Title 26, Internal Revenue Code.
2005—Subsec. (a)(1). Pub. L. 109–8, § 1402(2), in introductory provisions, inserted “(including any transfer to or for the benefit of an insider under an employment contract)” after “avoid any transfer” and “(including any obligation to or for the benefit of an insider under an employment contract)” after “or any obligation”.
Pub. L. 109–8, § 1402(1), substituted “2 years” for “one year” in introductory provisions.
Subsec. (a)(1)(B)(ii)(IV). Pub. L. 109–8, § 1402(3), added subcl. (IV).
Subsec. (b). Pub. L. 109–8, § 1402(1), substituted “2 years” for “one year”.
Subsec. (d)(2)(B). Pub. L. 109–8, § 907(o)(4), inserted “financial participant,” after “financial institution,”.
Subsec. (d)(2)(C). Pub. L. 109–8, § 907(o)(5), inserted “or financial participant” after “repo participant”.
Subsec. (d)(2)(D). Pub. L. 109–8, § 907(o)(6), inserted “or financial participant” after “swap participant”.
Subsec. (d)(2)(E). Pub. L. 109–8, § 907(f), added subpar. (E).
Subsec. (e). Pub. L. 109–8, § 1402(4), added subsec. (e).
1998—Subsec. (a). Pub. L. 105–183, § 3(a), designated existing provisions as par. (1), redesignated former pars. (1) and (2) as par. (1)(A) and (B), respectively, redesignated former par. (2)(A) and (B) as par. (1)(B)(i) and (ii), respectively, and redesignated former par. (2)(B)(i) to (iii) as par. (1)(B)(ii)(I) to (III), respectively, and added par. (2).
Subsec. (d)(3), (4). Pub. L. 105–183, § 2, added pars. (3) and (4).
1994—Subsec. (d)(2)(B). Pub. L. 103–394, § 501(b)(5)(A), substituted “section 101, 741, or 761” for “section 101
(15)” and “section 101 or 741” for “section 101
Subsec. (d)(2)(C). Pub. L. 103–394, § 501(b)(5)(B), substituted “section 741 or 761” for “section 741
1990—Subsec. (d)(2)(B). Pub. L. 101–311, § 204, inserted reference to sections 101
Subsec. (d)(2)(D). Pub. L. 101–311, § 104, added subpar. (D).
1986—Subsec. (d)(2)(B). Pub. L. 99–554substituted “, financial institution” for “financial institution,”.
1984—Subsec. (a). Pub. L. 98–353, § 463(a)(1), substituted “if the debtor voluntarily or involuntarily” for “if the debtor” in provisions preceding par. (1).
Subsec. (a)(1). Pub. L. 98–353, § 463(a)(2), substituted “was made” for “occurred”.
Subsec. (a)(2)(B)(ii). Pub. L. 98–353, § 463(a)(3), inserted “or a transaction” after “engaged in business”.
Subsec. (c). Pub. L. 98–353, § 463(b), inserted “or may retain” after “lien on” and struck out “, may retain any lien transferred,” before “or may enforce any obligation incurred”.
Subsec. (d)(1). Pub. L. 98–353, § 463(c)(1), substituted “is so” for “becomes so far”, “applicable law permits such transfer to be” for “such transfer could have been”, and “is made” for “occurs”.
Subsec. (d)(2)(B). Pub. L. 98–353, § 463(c)(2), inserted “financial institution,” after “stockbroker”.
Subsec. (d)(2)(C). Pub. L. 98–353, § 394(2), added subpar. (C).
1982—Subsec. (d)(2)(B). Pub. L. 97–222substituted “a commodity broker, forward contract merchant, stockbroker, or securities clearing agency that receives a margin payment, as defined in section 741
(15) of this title, or settlement payment, as defined in section 741
(8) of this title, takes for value to extent of such payment” for “a commodity broker or forward contract merchant that receives a margin payment, as defined in section 761
(15) of this title, takes for value”.
Amendment by section 1402 ofPub. L. 109–8effective Apr. 20, 2005, and applicable only with respect to cases commenced under this title on or after such date, with amendment by par. (1) of such section applicable only with respect to cases commenced under this title more than 1 year after Apr. 20, 2005, see section 1406 ofPub. L. 109–8, set out as a note under section 507 of this title.
Amendment by section 907 ofPub. L. 109–8effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 ofPub. L. 109–8, set out as a note under section 101 of this title.