Chase Manhattan Mortgage Corp. v. Shapiro
Jan 01, 2005OUTCOME: In a 2-1 split, the Sixth Circuit found that the earmarking defense does not “protect the late-perfecting refinancer from preference exposure” under § 547.
Complaint filed on behalf of the Chapter 7 Trustee seeking to avoid Chase's refinance mortgage as a preferential transfer under 11 U.S.C. §. 547, since Chase recorded the mortgage beyond the 10-day g ... race period under former § 547(e)(2). Chase argued that the earmarking doctrine prohibited the Trustee from avoiding the new mortgage.
