An Argument for Creating an Exception to § 547 for Payments on Intraday Overdrafts

Author:Zachary Gray Sanderson
Position:J.D. Candidate, The University of Iowa College of Law, 2015; B.A., Iowa State University, 2011
Pages:1865-1889
SUMMARY

Banks routinely advance intraday or "daylight" credit to their customers by provisionally honoring checks that overdraft the customer's account. Banks can dishonor these provisionally honored checks before midnight on the day after the check is presented. Under the terms of the Bankruptcy Code, these provisional credits create a corresponding claim, such that repayment of the claim may be a... (see full summary)


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