IN RE BUFFALO RESTAURANT EQUIPMENT, INC.

Bankruptcy No. 98-15124 K. Adversary No. 00-1069 K.

284 B.R. 770 (2002)

In re BUFFALO RESTAURANT EQUIPMENT, INC., d/b/a Bison City Icemakers, Debtor. Mark S. Wallach, Trustee in Bankruptcy of Buffalo Restaurant Equipment, Inc., Plaintiff, v. Henry Kurowski, Defendant.

United States Bankruptcy Court, W.D. New York.

October 23, 2002.


Attorney(s) appearing for the Case

Mark S. Wallach, Penney, Maier & Wallach, Buffalo, NY, trustee.

Michael O. Morse, Buffalo, NY, for Defendant.


DECISION AFTER TRIAL

MICHAEL J. KAPLAN, Bankruptcy Judge.

This case presents an interesting question, apparently of first impression.

In a fraudulent conveyance action in which a corporation paid cash to the transferee, and the transferee shows that the "past consideration" was a loan to the principal of the corporation, is it a complete defense to show that loan proceeds are traceable into the corporate bank account? Stated otherwise, must a...

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