Barnhill v. Johnson, 503 U.S. 393, 4 (1992)

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396

BARNHILL v. JOHNSON

Opinion of the Court

The Court of Appeals for the Tenth Circuit reversed, concluding that a date of honor rule should govern actions under § 547(b). In re Antweil, 931 F. 2d 689 (1991). It distinguished a prior decision, In re White River Corp., 799 F. 2d 631 (1986), in which it held that, for purposes of § 547(c), a date of delivery rule should govern when a transfer occurs.2 The Tenth Circuit concluded that §§ 547(b) and 547(c) have different purposes and functions, justifying different rules for each. It further concluded that a date of honor rule was appropriate because such a rule was consistent with provisions of the Uniform Commercial Code (U. C. C.), was capable of easier proof, and was less subject to manipulation. We granted certiorari to resolve a Circuit split.3 502 U. S. 807 (1991).

In relevant part, § 547(b) provides:

"(b) Except as provided in subsection (c) of this section, the trustee may avoid any transfer of an interest of the debtor in property—

. . . . . "(4) made— "(A) on or within 90 days before the date of the filing of the petition . . . ."

2 Section 547(c) establishes certain transfers that are not recoverable as preferences, even if they fall within the 90-day preference period. See infra, at 402.

3 Those selecting a date of honor rule include Nicholson v. First Investment Co., 705 F. 2d 410 (CA11 1983) (Bankruptcy Act), and In re New York City Shoes, Inc., 880 F. 2d 679 (CA3 1989) (dicta). Those selecting date of delivery include Global Distribution Network, Inc. v. Star Expansion Co., 949 F. 2d 910 (CA7 1991); In re Virginia Information Systems Corp., 932 F. 2d 338 (CA4 1991); In re Belknap, Inc., 909 F. 2d 879 (CA6 1990); and In re Kenitra, Inc., 797 F. 2d 790 (CA9 1986), cert. denied sub nom. Morrow, Inc. v. Agri-Beef Co., 479 U. S. 1054 (1987).

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