In Re Chase & Sanborn Corporation, Debtor. Paul C. Nordberg, Creditor Trustee v. Arab Banking Corporation

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• holding that case law applying the concept of “fair consideration” under the old Bankruptcy Act of 1898 has been adopted as applicable to the concept of “reasonably equivalent value” under the Bankruptcy Code of 1978
• determining whether a fraudulent transfer had occurred under the Bankruptcy Code, 11 U.S.C. S 548
• finding a bank to be the initial transferee of a fraudulent transfer where the funds were transferred to the bank to pay off part of a loan
• corporate debt- or/guarantor’s loan payments to creditor were on account of antecedent debt even though obligation to pay was contingent on guarantee’s default and had not matured at time payments were made
• “[T]he extent of [the principal’s] control over [the debtor] generally, and over [the debtor’s] actions in transferring the disputed funds to [the creditor] in particular, is entirely irrelevant to the ‘initial transferee’ issue.”
• payment made by guarantor before a guarantee was called, in anticipation of liability under the guarantee and in an effort to forestall a call on the guarantee, was a payment on an antecedent debt.

Source: CourtListener parenthetical corpus (CC0).