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IN RE N.A. FLASH FOUNDATION, INC.

No. 07-50803.

541 F.3d 385 (2008)

In The Matter Of: N.A. FLASH FOUNDATION, INC., Debtor. Trustee John Patrick Lowe, Appellant, v. Palmetco, Inc., Appellee.

United States Court of Appeals, Fifth Circuit.

August 18, 2008.

Attorney(s) appearing for the Case

John Patrick Lowe (argued), Dodson & Lowe, Uvalde, TX, pro se.

Ronald S. Schmidt (argued), Schmidt & Davis, San Antonio, TX, for Palmetco, Inc.

Thomas J. Walthall, Jr., Jay K. Farwell, The Gardner Law Firm, San Antonio, TX, for American Subcontractors Ass'n, Inc., Amicus Curiae.

Before PRADO, ELROD and HAYNES, Circuit Judges.

PRADO, Circuit Judge:

In this appeal, we are called upon to decide whether Texas law concerning construction trust funds and materialman's liens prevents a bankruptcy trustee from avoiding three prepetition transfers of funds as preferential transfers under 11 U.S.C. § 547(b). Because the creditor in this case would have received the same amount in a hypothetical Chapter 7 proceeding as a result of Texas construction trust fund law as it did in the allegedly...

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