§3305 When transfer is made or obligation is incurred

Summary

A transfer of property is treated as “made” at different times depending on the type of asset and how its legal rights are protected. For real property (not fixtures, but including a buyer’s or seller’s contract interest), the transfer counts as made when the transferee’s rights are protected so well that a good-faith buyer from the debtor cannot get a better right. For non-real property and for fixtures, the transfer counts as made when the transferee’s rights are protected so a simple-contract creditor cannot get a court lien that is better than the transferee’s. If the law lets the transfer be protected that way but it was not protected before a bankruptcy case started, the transfer is treated as having been made just before the case began. If the law does not allow that kind of protection, the transfer is made when it is effective between the debtor and the transferee. A transfer only counts after the debtor had rights in the asset. An obligation is incurred when it takes effect between the parties if spoken, or when a signed written promise by the person who owes it is delivered to the person owed.