Table of Contents

• Jurisdiction: United States

Table of Contents

Chapter 1 Introduction to Preference Analyses and the Ordinary Course of Business Defense....................................................................................1

Creditor Defenses to Preference Claims.........................................2

Ordinary Between the Parties: Subjective Test................................4

Ordinary in the Industry: Objective Test........................................4

Factors Often Considered by the Courts........................................5

Who This Book Is For.................................................................6

Overview of Topics Covered in the Book.......................................7

Chapter 2 Background: The Bankruptcy Code and the Ordinary Course of Business Defense....................................................................................9

What Is a "Transfer"?................................................................10

When Does a Transfer Occur?....................................................11

Defenses to Preference Claims Under § 547(c)..............................14

Creditor Approaches to Defending Preference Claims...................18

Introduction to the Ordinary Course Defense..............................19

Introduction to the Subsequent New Value Defense......................25

Summary................................................................................. 26

Chapter 3 The Role of Accounting Systems in the Ordinary Course.................31

General Statistics......................................................................33

Processes and Documents.......................................................... 34

Terms of Credit ........................................................................ 41

Collection Activity.................................................................... 42

Standard Processes & Procedures...............................................42

Summary ................................................................................ 44

Chapter 4 The Data-Gathering Process and Assessing "Reasonably Certain"..............................................................................55

Establishing the Time Period for Analysis....................................55

Extracting Information from Accounting Platforms......................60

Common Concerns or Questions Pertaining to Data Extractions ....62

Assessing the Integrity of the Data to Be Relied Upon....................64

The Reasonable Certainty...