Issue link: https://mbozikis.ufcontent.com/i/1422521
114 of the estate. See McCuskey v. Nat'l Bank of Waterloo (In re Bohlen Enters., Ltd.), 859 F.2d 561, 565 (8th Cir. 1988). The trustee or debtor-in-possession has the burden of proof for establishing the elements of a preference under Section 547(b), and the party against whom a preference action has been brought has the burden of proof for establishing the existence of the various defenses under Section 547(c). 11 U.S.C. § 547(g). Section 547(e) of the Bankruptcy Code sets forth certain timing provisions applicable to the avoidance of preferential transfers (i.e., establishing when a transfer is deemed to occur for preference purposes). This is critical since a transfer is only preferential (and therefore subject to avoidance under this Section) if the transfer occurs after the incurrence of the obligation by the debtor. A transfer is deemed made (i) at the time of the transfer if such transfer is perfected at, or within thirty days after, such time (the "Thirty-Day Grace Period"); (ii) at the time such transfer is perfected, if such transfer is perfected after the Thirty-Day Grace Period; or (iii) immediately before the date of the filing of the petition if such transfer is not perfected at the later of the commencement of the case or thirty days after such transfer takes effect. Furthermore, a transfer cannot be made for preference purposes before the debtor has acquired rights in the property transferred. Thus, the timing of a transfer depends on the time when such transfer was perfected. The determination of when a transfer is perfected depends entirely on applicable nonbankruptcy law. See Barnhill v. Johnson, 503 U.S. 393 (1992). Real property transfers (other than transfers of fixtures) are perfected when the transfer would be invulnerable to attack by a bona fide purchaser. 11 U.S.C. § 547(e)(1)(A). However, transactions relating to personal property or fixtures are perfected when a creditor on a simple contract cannot acquire a judicial lien that is superior to the interest of the transferee. 11 U.S.C. § 547(e)(1)(B). This generally occurs when a Uniform Commercial Code (UCC) financing statement is filed. A cash payment by a debtor to a