Issue link: https://mbozikis.ufcontent.com/i/1422521
120 perfection of such transfer. 11 U.S.C. § 549(c). A good faith purchaser without knowledge of the commencement of the case that acquired an interest in real estate for less than present fair equivalent value holds a lien on the property transferred to the extent of the value provided unless a copy or notice of the bankruptcy petition was filed with the applicable real estate recording office prior to the perfection of the transfer. Id. Also, courts have generally been loath to read Section 549(c) too broadly. See, e.g., In re Miller, 454 F.3d 899, 902 (8th Cir. 2006) (citing Ford v. A.C. Loftin (In re Ford), 296 B.R. 537, 553 (Bankr. N.D. Ga. 2003) ("[T]he use of 'present fair' indicates an intent [by Congress] that the protection of § 549(c) be limited to truly innocent purchasers who have actually paid a fair price in the transaction.") (emphasis added). Finally, Rule 6001 of the Bankruptcy Rules provides that "[a]ny entity asserting the validity of a transfer under [Section] 549 shall have the burden of proof." In most cases, a proceeding to contest a transfer under Section 549 will be brought by the trustee or debtor-in-possession. Such proceeding, however, may not be commenced after the earlier of (i) two years after the date of the transfer sought to be avoided or (ii) the time the case is closed. 11 U.S.C. § 549(d). 5. Statutory Liens Section 545 of the Bankruptcy Code authorizes the trustee to avoid the fixing of a statutory lien 70 on property of the debtor to the extent that such lien: (i) first becomes effective against the debtor upon the bankruptcy or insolvency of the debtor or the 70 The Bankruptcy Code defines a "statutory lien" as a "lien arising solely by force of a statute on specified circumstances or conditions, or lien of distress for rent, whether or not statutory, but does not include security interest or judicial lien, whether or not such interest or lien is provided by or is dependent on a statute and whether or not such interest or lien is made fully effective by statute." 11 U.S.C. § 101(53).