Ostrander v. Gardner, (In Re Millivision). No. 06-9006. This case involves the trustee’s power under 11 U.S.C. § 544(a) to avoid an unperfected and unsecured security interest in assets. The appellants unsuccessfully argued that the trustee could not invoke this power, because 11 U.S.C. § 547(c) permits the creditors later perfection to “relate back” to the date of the original loan. (These events took place in under a week.) The First holds that 11 U.S.C. §§ 547(c), (e) is not “generally applicable [relation-back] law” because other caselaw and legislative history says that reference is to non-bankruptcy relation-back provisions.
Finally, the equitable arguments are dismissed by pointing out that the creditors could have secured their interests before advancing the money.
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