Law360, New York (April 6, 2015, 5:27 PM EDT) -- There are numerous issues to be taken into consideration regarding escrow agreements in the context of a bankruptcy. One such question is whether the escrow agreement is an executory contract that the trustee can potentially reject pursuant to Section 365(a) of the Bankruptcy Code. A second important question is whether the escrowed funds constitute property of the bankruptcy estate in accordance with Section 541(a)(1) of the Bankruptcy Code, if one of the parties to the escrow files a Chapter 11 petition. Moreover, there is also a concern with escrow agreements that property that is deposited in an escrow account before the petition date can be deemed to be a preferential transfer or a fraudulent transfer and thus be avoided pursuant to Section 547 of the Bankruptcy Code, Section 544 of the Bankruptcy Code or Section 548 of the Bankruptcy Code....