House Journal: Page 1370: Monday, April 23, 2001
Page 49
1 of an establishment to or for the benefit of a
2 creditor for an antecedent debt made or suffered by
3 the establishment within one year before the filing of
4 a successful petition for liquidation under this
5 chapter, the effect of which transfer may be to enable
6 the creditor to obtain a greater percentage of this
7 debt than another creditor of the same class would
8 receive. If a liquidation order is entered while the
9 establishment is already subject to a receivership,
10 then the transfers are preferences if made or suffered
11 within one year before the filing of the successful
12 petition for the receivership, or within two years
13 before the filing of the successful petition for
14 liquidation, whichever time is shorter.
15 (2) A preference may be avoided by the liquidator
16 if any of the following exist:
17 (a) The establishment was insolvent at the time of
18 the transfer.
19 (b) The transfer was made within four months
20 before the filing of the petition.
21 (c) At the time the transfer was made, the
22 creditor receiving it or to be benefited by the
23 transfer or the creditor's agent acting with reference
24 to the transfer had reasonable cause to believe that
25 the establishment was insolvent or was about to become
26 insolvent.
27 (d) The creditor receiving the transfer was an
28 officer, or an employee, attorney, or other person who
29 was in fact in a position of comparable influence in
30 the establishment to an officer whether or not the
31 person held the position of an officer, owner, or
32 other person, firm, corporation, association, or
33 aggregation of persons with whom the establishment did
34 not deal at arm's length.
35 (3) Where the preference is voidable, the
36 liquidator may recover the property. If the property
37 has been converted, the liquidator may recover its
38 value from a person who has received or converted the
39 property. However, if a bona fide purchaser or lienor
40 has given less than the present fair equivalent value,
41 the purchaser or lienor shall have a lien upon the
42 property to the extent of the consideration actually
43 given. Where a preference by way of lien or security
44 interest is voidable, the court may on due notice
45 order the lien or security interest to be preserved
46 for the benefit of the estate, in which event the lien
47 or title shall pass to the liquidator.
48 b. (1) A transfer of property other than real
49 property is made when it becomes perfected so that a
50 subsequent lien obtainable by legal or equitable
© 2001 Cornell College and
League of Women Voters of Iowa
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