POST-PETITION TRANSFEREE
to a property’s fair market value. See
Shaw v. County of San Bernardino (In
re Shaw), 157 B.R. 151, 153-54 (9th Cir.
BAP 1993).” Hopkins v. Suntrust Mortg.,
Inc., 441 B.R. 656, 665 (Bankr. D. Idaho
2010)
10.
11 U.S.C. § 549(c)
11.
Positions on interpretation of the
undefined term of “good faith purchaser”
by various Circuit Court of Appeals
include:
“The Bankruptcy Code does not define
‘good faith purchaser,’ but the Second
Circuit has adopted the traditional
equitable definition: ‘one who purchases
the assets for value, in good faith
and without notice of adverse claims.’
Licensing by Paolo, Inc. v. Sinatra (In re
Gucci), 126 F.3d 380, 390 (2d Cir. 1997)”
BDC Fin., L.L.C. v. Metaldyne Corp. (In
re Metaldyne Corp.), 421 B.R. 620, 625
(S.D.N.Y. 2009)
does not define the term ‘good faith
purchaser,’ courts have adopted the
‘traditional equitable definition of a ‘good
faith purchaser,’ defined as ‘one who
purchases the assets for value, in good
faith, and without notice of adverse
claims.’ In re Rock Indus. Mach. Corp.,
572 F.2d 1195, 1197 (7th Cir. 1978).”
Made in Detroit, Inc. v. Official Comm. of
Unsecured creditors of Made in Detroit,
Inc. (In re Made in Detroit, Inc.), 414 F.3d
576, 581 (6th Cir. Mich. 2005)
“Though the bankruptcy code does
not define ‘good faith purchaser,’ we
have adopted the traditional equitable
definition of the term: one who purchases
the assets for value, in good faith, and
without notice of adverse claims.” In re
Alan Gable Oil Dev. Co., 1992 U.S. App.
LEXIS 29833 (4th Cir. W. Va. 1992)
The Fifth Circuit has characterized a
good faith purchase in bankruptcy as
one that lacks “fraud, collusion between
the purchaser and other bidders or the
trustee, or an attempt to take grossly
unfair advantage of other bidders.” In re
Bleaufontaine, Inc., 634 F.2d 1383, 1388
n.7 (5th Cir. Unit B Jan. 1981)) (quoting
In re Rock Indus. Mach. Corp., 572 F.2d
1195, 1198 (7th Cir. 1978)).
12.
This portion of 11 U.S.C. §
549(c) uses only the term “property”
as opposed to “real property”, but the
subsequent provision regarding recoding
of lien in county and more must lead one
to believe that the lack of the adjective
“real” was oversight.
13.
11 U.S.C. § 549(c)
“Though the bankruptcy code itself
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