4th Circ. Twists The Section 548(c) Good-Faith Norm

Law360, New York (March 21, 2014, 12:37 PM EDT) -- Section 548(c) of the Bankruptcy Code provides transferees subject to fraudulent conveyance actions with an affirmative defense if they received the transfer for value and in good faith. As with any affirmative defense, the transferee bears the burden of proof.

In cases where the trustee attempts to avoid a debtor’s repayment of a monetary obligation — such as a repayment of a loan or a return of an investor’s cash investment — the “for value” component is rarely at issue because the property transferred — cash...
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