test folder

112 that is not an insider for the benefit of an insider, such transfer shall be avoidable only with respect to the creditor that is an insider. If all the elements of Section 547(b) are satisfied, the trustee may seek to avoid such transfer unless the transferee can prove that it is entitled to rely on one of the affirmative defenses listed in Section 547(c). Pursuant to Section 547(c), exempted transfers include the following: (i) transfers that were intended by the debtor and the creditor to be contemporaneous exchanges for new value 63 to the debtor and that were in fact "substantially contemporaneous" exchanges; (ii) payments of debts arising in the ordinary course of the debtor's and the transferee's business or financial affairs and which were made in the ordinary course of the debtor's and the transferee's business or financial affairs or according to ordinary business terms; (iii) grants of a security interest for enabling or purchase money loans where the creditor perfects its security interest within thirty days after receipt of the property by the debtor; (iv) transfers to the extent that the transferee gives new value to or for the benefit of the debtor on an unsecured basis after receiving a preferential transfer and on account of which the debtor did not make an otherwise unavoidable transfer to or for the benefit of the creditor; (v) transfers that create a perfected security interest in inventory or accounts receivable (a "floating lien"), except for any amount by which a creditor's position 63 The Bankruptcy Code defines "new value" as money's worth in goods, services or new credit, but not substitution of an old obligation with a new one. 11 U.S.C. § 547(a)(2).

• Cover