Telecash Indus., Inc. v. Universal Assets (In re Telecash Indus., Inc.), 104 B.R. 401 (Bankr.D.Utah)
PUBLISHED
Debtor-in-possession sought to avoid creditor's security interest under 11 U.S.C. § 547(b). Debtor claimed that creditor's perfection of its security interest had been preferential because creditor filed its UCC-1 financing statement more than ten days after the security interest was granted, and that such delayed perfection constituted a transfer for or on account of an antecedent debt, which is prohibited by § 547(e)(2). The court agreed that creditor's delayed perfection constituted a transfer on account of an antecedent debt within the meaning of the preference statute, but disagreed that creditor was thereby precluded from claiming that the perfection was subject to the § 547(c) preference exception . Because fact issues needed to be resolved on the issue of whether the perfection was part of a "substantially contemporaneous exchange" within the meaning of the exception, the court denied debtor's motion for summary judgment.