Preferential transfers in insolvency are avoidable when they favor creditors or related parties during the relevant time. Preferential transfers by a corporate debtor are avoidable where property or an interest in property is transferred to a creditor, surety, or guarantor for antecedent liabilities and the transfer places that person in a better position than under distribution in liquidation. Transfers made in the ordinary course of business, or certain security interests securing new value and duly registered, are excluded. A preference is deemed to have been given during the relevant time if made to a related party within two years, or to any other person within one year, before the initiation date ending on the insolvency commencement date.
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Provisions expressly mentioned in the judgment/order text.
Preferential transfers in insolvency are avoidable when they favor creditors or related parties during the relevant time.
Preferential transfers by a corporate debtor are avoidable where property or an interest in property is transferred to a creditor, surety, or guarantor for antecedent liabilities and the transfer places that person in a better position than under distribution in liquidation. Transfers made in the ordinary course of business, or certain security interests securing new value and duly registered, are excluded. A preference is deemed to have been given during the relevant time if made to a related party within two years, or to any other person within one year, before the initiation date ending on the insolvency commencement date.
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