Case Summary:
Chapter 7 trustee sought to avoid a mortgage as a preferential transfer. The debtor had refinanced his home and executed a promissory note for $187,000 on March 1, 2004. The defendant did not fund the loan until March 19, and did not record the mortgage until March 26. The trustee contended that this delay took the mortgage outside the safe harbor provision of 547(e)(2). The court found that the transaction qualified for the safe harbor provision, and that even if it did not, the delay did not preclude the transaction from being considered as a contemporaneous exchange for new value under 547(c)(1). Under the facts of the case, the Court found the transaction to be such a contemporaneous exchange. Judgment was entered in favor of the defendant.

Statute/Rule References:
11 U.S.C. § 547 -- Preferences