A bankruptcy trustee may invalidate a granting of a security interest from the debtor if it was made on the date of or within 90 days before the filing of the bankruptcy petition and it was for the benefit of a creditor for an antecedent debt and was made before the debtor became insolvent.

Question

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A bankruptcy trustee can avoid a transfer made within 90 days before the filing if it was for an antecedent debt, made while the debtor was insolvent, and benefited a creditor, not before insolvency.

A Bankruptcy Trustee May Invalidate a Granting of a Security