Contemporaneous Exchange for New Value Defense

One of the defenses available to a creditor in a preference action. The defense requires a showing that the creditor gave new value to the debtor in exchange for the allegedly preferential transfer and that the creditor gave the value to the debtor at substantially the same time that the debtor made its transfer to the creditor.

Bankruptcy Code ยง 547(c)(1). See also Ordinary Course Defense, Preference.

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