test folder

115 creditor or an actual delivery of tangible personal property are perfected as soon as such transactions are made because, at that point, they are also perfected against subsequent judicial liens obtainable against the debtor. 11 U.S.C. § 547(e)(2). However, in response to the COVID-19 pandemic and to encourage landlords to enter into rent deferral agreements, Section 547 was amended under the CAA Amendments so that "covered payment of rental arrearages" (i.e., payments of arrearages made in connection with an agreement between a debtor and a lessor to defer or postpone payment of rent and other periodic charges under a lease of non-residential property) and "covered payment of supplier arrearages" (i.e., payments of arrearages made in connection with an agreement between a debtor and a supplier of goods or services to defer or postpone payment of amounts due under an executory contract) may not be avoided by a debtor during the preference period. This amendment will expire in December 2022. 11 U.S.C. § 547. 2. Fraudulent Conveyances Fraudulent transfers are prepetition transfers made or obligations incurred in which the value of the property transferred or the amount of the obligation incurred by the debtor is greater (by more than a minimal amount) than the value of the consideration received by the debtor in exchange for such property or obligation, either as a result of a concerted scheme by the debtor to defraud its creditors or simply as a result of the facts and circumstances of the transfer or obligation. As such transfers or obligations result in diminishment of the estate, Section 548 of the Bankruptcy Code grants a trustee the power to avoid such transactions. According to the Bankruptcy Code, transfers and obligations may be avoided as fraudulent transfers if they were made or incurred within two years before the petition date and (i) were "actually fraudulent" in that they were made or incurred with the actual intent to hinder, delay or defraud the debtor's creditors or

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