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Does Payment By Check Constitute A Transfer Upon Delivery Or Payment?, Kenneth D. Ferguson
Does Payment By Check Constitute A Transfer Upon Delivery Or Payment?, Kenneth D. Ferguson
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The inherent delay between delivery and a check's payment is significant in determining whether the transfer occurs upon delivery or payment of the check. A dilemma is created if a check is received on the 93rd day before the debtor's bankruptcy petition is filed, but payment occurs on the 89th day before the petition is filed. When is the transfer of funds considered to have occurred for the purpose of determining whether the payment is avoidable as a preference, on the 93rd or 89th day before the petition was filed?
The first section of this article analyzes of the legal …