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Banking and Finance Laws

Sixth Circuit Trims Bank's Good-Faith Defense to Fraudulent Transfer Claims

Part One of a Two-Part Article

The issue of what constitutes a good-faith defense to a fraudulent transfer claim is a murky question that has produced a wide variety of reported decisions from appellate courts over the years. But a recent Sixth Circuit opinion sheds some clear light on a complicated fact pattern.

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The issue of what constitutes a good-faith defense to a fraudulent transfer claim is a murky question that has produced a wide variety of reported decisions from appellate courts over the years. This issue has continued its serpentine course, but a recent Sixth Circuit opinion sheds some clear light on a complicated fact pattern. In this two-part article, we review the Sixth’s Circuit’s most recent decision in detail and offer some guidance on this thorny question.

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