Opinion ID: 501876
Heading Depth: 2
Heading Rank: 1

Heading: The Strong Arm Clause

Text: 11 Title 11 U.S.C. Sec. 544(a) (Supp. IV 1986), the strong arm clause, gives a bankruptcy trustee power to avoid certain transfers or liens against property in the bankruptcy estate. 12 Section 544(a)(3) allows the trustee to avoid all obligations and transfers that would be avoidable by a bona fide purchaser of real property ... that obtains the status of a bona fide purchaser ... at the time of the commencement of the [bankruptcy] case, whether or not such a purchaser exists. Section 544(a) grants the bankruptcy trustee this power without regard to any knowledge of the trustee or of any creditor. The powers of a bona fide purchaser for purposes of section 544(a) are defined by state law. Maine Nat'l Bank v. Morse (In re Morse ), 30 B.R. 52, 54 (Bankr. 1st Cir.1983); Saghi v. Walsh (In re Gurs ), 27 B.R. 163, 164 (Bankr. 9th Cir.1983); C.R. Loup v. Great Plains W. Ranch Co., 38 B.R. 899, 905 (Bankr.C.D.Cal.1984); see 4 Collier on Bankruptcy p 544.02 (L. King 15th ed. 1986). 13 Placer Savings & Loan Ass'n v. Walsh (In re Marino ), 813 F.2d 1562, 1565 (9th Cir.1987). A debtor in possession has the same rights, powers, functions, and duties, except the right to compensation, as a bankruptcy trustee. 11 U.S.C. Sec. 1107 (1982 & Supp. IV 1986).