Title 11 — Bankruptcy
Chapter 5 — Creditors, the Debtor, and the Estate
§ 549. Postpetition transactions
Statutory text
Except as provided in subsection (b) or (c) of this section, the trustee may avoid a transfer of property of the estate—
that occurs after the commencement of the case; and
that is authorized only under section 303(f) or 542(c) of this title; or
that is not authorized under this title or by the court.
In an involuntary case, the trustee may not avoid under subsection (a) of this section a transfer made after the commencement of such case but before the order for relief to the extent any value, including services, but not including satisfaction or securing of a debt that arose before the commencement of the case, is given after the commencement of the case in exchange for such transfer, notwithstanding any notice or knowledge of the case that the transferee has.
The trustee may not avoid under subsection (a) of this section a transfer of an interest in real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of an interest in such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such real property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to such interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected.
An action or proceeding under this section may not be commenced after the earlier of—
two years after the date of the transfer sought to be avoided; or
the time the case is closed or dismissed.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 549
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2601
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2601Pub. L. 98–353 § 464(a)(1) · 98 Stat. 333
Substituted · 11 U.S.C. § 549(a)
Pub. L. 98–353, § 464(a)(1), (2), substituted “(b) or (c)” for “(b) and (c)” in provisions preceding par. (1)
Inserted · 11 U.S.C. § 549(a)
Pub. L. 98–353, § 464(a)(1), (2), inserted “only” between “authorized” and “under” in par. (2)(A). In the original of Pub. L. 98–353, subsec. (a)(2) of section 464 thereof ended with a period but was followed by pars. (3), (4), and (5). Such pars. (3), (4), and (5) purported to amend subsec. (a) of this section in ways not susceptible of execution. In a predecessor bill [S. 445], these pars. (3), (4), and (5) formed a part of a subsec. (b) of section 361 thereof which amended subsec. (b) of this section. Such subsec. (b) of section 361 of S. 445 was not carried into Pub. L. 98–353, § 464
Source evidence
Code amendment note
Subsec. (a). Pub. L. 98–353, § 464(a)(1), (2), substituted “(b) or (c)” for “(b) and (c)” in provisions preceding par. (1) and inserted “only” between “authorized” and “under” in par. (2)(A). In the original of Pub. L. 98–353, subsec. (a)(2) of section 464 thereof ended with a period but was followed by pars. (3), (4), and (5). Such pars. (3), (4), and (5) purported to amend subsec. (a) of this section in ways not susceptible of execution. In a predecessor bill [S. 445], these pars. (3), (4), and (5) formed a part of a subsec. (b) of section 361 thereof which amended subsec. (b) of this section. Such subsec. (b) of section 361 of S. 445 was not carried into Pub. L. 98–353, § 464.Enacted provision · exact public law section
(1) by striking out “(b) and (c)” and inserting in lieu thereof “(b) or (c)”; andPub. L. 98–353 § 464(c) · 98 Stat. 333
Amended · 11 U.S.C. § 549(c)
Pub. L. 98–353, § 464(c), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “The trustee may not avoid under subsection (a) of this section a transfer, to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value or to a purchaser at a judicial sale, of real property located other than in the county in which the case is commenced, unless a copy of the petition was filed in the office where conveyances of real property in such county are recorded before such transfer was so far perfected that a bona fide purchaser of such property against whom applicable law permits such transfer to be perfected cannot acquire an interest that is superior to the interest of such good faith or judicial sale purchaser. A good faith purchaser, without knowledge of the commencement of the case and for less than present fair equivalent value, of real property located other than in the county in which the case is commenced, under a transfer that the trustee may avoid under this section, has a lien on the property transferred to the extent of any present value given, unless a copy of the petition was so filed before such transfer was so perfected.”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 98–353, § 464(c), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “The trustee may not avoid under subsection (a) of this section a transfer, to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value or to a purchaser at a judicial sale, of real property located other than in the county in which the case is commenced, unless a copy of the petition was filed in the office where conveyances of real property in such county are recorded before such transfer was so far perfected that a bona fide purchaser of such property against whom applicable law permits such transfer to be perfected cannot acquire an interest that is superior to the interest of such good faith or judicial sale purchaser. A good faith purchaser, without knowledge of the commencement of the case and for less than present fair equivalent value, of real property located other than in the county in which the case is commenced, under a transfer that the trustee may avoid under this section, has a lien on the property transferred to the extent of any present value given, unless a copy of the petition was so filed before such transfer was so perfected.”Enacted provision · exact public law section
(c) Section 549(c) of title 11 of the United States Code is amended Real property. to read as follows: “(c) The trustee may not avoid under subsection (a) of this section a transfer of real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to the interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected”.Pub. L. 98–353 § 464(d) · 98 Stat. 333
Substituted · 11 U.S.C. § 549(d)(1)
Pub. L. 98–353, § 464(d), substituted “or” for “and”
Source evidence
Code amendment note
Subsec. (d)(1). Pub. L. 98–353, § 464(d), substituted “or” for “and”.Enacted provision · exact public law section
(d) Section 549(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 title II § 283 · 100 Stat. 3088
Substituted · 11 U.S.C. § 549(b)
Pub. L. 99–554 substituted “made” for “that occurs”
Substituted · 11 U.S.C. § 549(b)
Pub. L. 99–554 substituted “to the extent” for “is valid against the trustee to the extent of”
Inserted · 11 U.S.C. § 549(b)
Pub. L. 99–554 inserted “is” before “given”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 99–554 substituted “made” for “that occurs”, and “to the extent” for “is valid against the trustee to the extent of”, and inserted “is” before “given”.Enacted provision · exact public law section
SEC. 283. TECHNICAL CORRECTIONS. (a) (1) Section 101(43)(A)(xv) of title 11, United States Code, as amended by section 251, is amended by striking out “secuity” and inserting in lieu thereof “security”. (2) Section 101(51) of title 11, United States Code, as amended by section 251, is amended by striking out the semicolon at the end thereof and inserting in lieu thereof a period. (b) (1) Section 303(b) of title 11, United States Code, is amended by striking out “subject on” and inserting in lieu thereof “subject of”. (2) Section 303(h)(1) of title 11, United States Code, is amended by striking out “that”. (c) Section 346(j)(7) of title 11, United States Code, is amended by striking out “owned” and inserting in lieu thereof “owed”. (d) Section 362(b) of title 11, United States Code, is amended— (1) in paragraph (6) by striking out “financial institution,” each place it appears and inserting in lieu thereof “, financial institutions”, (2) striking “or” after the semicolon in the first paragraph (9), (3) striking out “(9)” in the second paragraph (9), and “(10)” in paragraph (10) and inserting in lieu thereof “(10)” and “(11)”, respectively, and (4) in paragraph (10), as so redesignated, by striking out the period at the end thereof and inserting in lieu thereof “; or”. (e) (1) Section 365(c) of title 11, United States Code, is amended by— (1) striking “or and assignee of such contract or lease” in subparagraph (1)(A), and (2) in paragraph (3) by— (A) inserting “is” after “lease”, and (B) inserting “and” after “property”. (2) Paragraph (1) of section 365(h) of title 11, United States Code, is amended by inserting “or timeshare plan” after “lease” the fourth place it appears. (3) Section 365(m) of title 11, United States Code, is amended by striking out “362(b)(9)” and inserting in lieu thereof “362(b)(10)”. (f) (1) Section 502(b)(6)(A)(ii) of title 11, United States Code, is amended by striking out “reposessed” and inserting in lieu thereof “repossessed”. (2) Section 502(i) of title 11, United States Code, is amended by striking out “507(a)(6)” and inserting in lieu thereof “507(a)(7)”. (g) Section 503(b) of title 11, United States Code, is amended— (1) in subparagraph (1)(B) by striking out “507(a)(6)” and inserting in lieu thereof “507(a)(7)”. (2) in paragraph (5) by inserting “and” after the semicolon, and (3) in paragraph (6) by striking out “; and” and inserting in lieu thereof a period. (h) Section 521(4) of title 11, United States Code, is amended by inserting “, whether or not immunity is granted under section 344 of this title” after “estate” the second place it appears. (i) (1) Section 522(h)(1) of title 11, United States Code, is amended by striking out “tittle” and inserting in lieu thereof “title”. (2) Section 522(i)(2) of title 11, United States Code, is amended by striking out “his” and inserting in lieu thereof “this”. (j) (1) Section 523(a) of title 11, United States Code, is amended— (A) in subparagraph (1)(A) by striking out “507(a)(6)” and inserting in lieu thereof “507(a)(7)”, and (B) by redesignating the second paragraph (9) as paragraph (10). (2) Section 523(b) of title 11, United States Code, is amended by striking out “Services” and inserting in lieu thereof “Service”. (k) Section 524(d)(2) of title 11, United States Code, is amended by striking out “subsection” the second place it appears and inserting in lieu thereof “section”. (l) Section 546(e) of title 11, United States Code, is amended by inserting a comma after “stockbroker”. (m) Section 547(b)(4)(B) of title 11, United States Code, is amended by inserting “and” after the semicolon. (n) Section 548(d)(2)(B) of title 11, United States Code, is amended by striking out “financial institution,” and inserting in lieu thereof “, financial institution”. (o) Section 549(b) of title 11, United States Code, is amended— (1) by striking out “that occurs” and inserting in lieu thereof “made”, (2) by striking out “is valid against the trustee to the extent of’ and inserting in lieu thereof “to the extent”, and (3) by inserting “is” before “given”. (p) Section 554(c) of title 11, United States Code, is amended by striking out “521(a)(1)” and inserting in lieu thereof “521(1)”. (q) The items relating to sections 557, 558, and 559 in the table of 11 USC 541 et seq. sections for subchapter III of chapter 5 of title 11, United States Code, are amended to read as follows: “557. Expedited determination of interests in, and abandonment or other disposition of grain assets. “558. Defenses of the estate. “559. Contractual right to liquidate a repurchase agreement.”. (r) Section 724(b)(2) of title 11, United States Code, is amended by— (1) striking out “or”, and (2) inserting “, or 507(a)(6)” after “507(a)(5)”. (s) Section 726(b) of title 11, United States Code, is amended by striking out “or (6)” and inserting in lieu thereof “(6) or (7)”. (t) Section 743 of title 11, United States Code, is amended by striking out “(d)”. (u) Section 1121(d) of title 11, United States Code, is amended by striking out “subsection” and inserting in lieu thereof “subsections (b) and”. (v) Section 1129(a) of title 11, United States Code, is amended— (1) in paragraph (7) by striking out “of” the first time it appears, (2) in subparagraph (9)(B) by striking out “or 507(a)(5)” the first time it appears and inserting in lieu thereof “507(a)(5) or 507(a)(6)”, and (3) in paragraph (9)(C) by striking out “(6)” and inserting in lieu thereof “(7)”. (w) Section 1302(e)(1) of title 11, United States Code, is amended by striking out “fix” and inserting in lieu thereof “set for such individual”. (x) Section 1324 of title 11, United States Code, is amended in the second sentence by striking out “the” the first place it appears. (y) Section 1325(b)(2)(A) of title 11, United States Code, is amended by striking out “or” after the semicolon and inserting in lieu thereof “and”. (z) Section 1326(a)(2) of title 11, United States Code, is amended by striking out “payments” and inserting in lieu thereof “payment”. (aa) 11 USC app. Official Bankruptcy Form No. 1, referred to in Rule 1002 of the Bankruptcy Rules, is amended— (1) in paragraph (6) by striking out “7 or 13” and inserting in lieu thereof “7,11,12, or 13”, and (2) by striking out “7 or 13” and inserting in lieu thereof “7, 11,12, or 13” in the statement to be made by the attorney in “Exhibit ‘B’”.Bankruptcy Reform Act of 1994
Pub. L. 103–394 title V § 501(d)(18) · 108 Stat. 4106
Inserted · 11 U.S.C. § 549(b)
Pub. L. 103–394 inserted “the trustee may not avoid under subsection (a) of this section” after “involuntary case,”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 103–394 inserted “the trustee may not avoid under subsection (a) of this section” after “involuntary case,”.Enacted provision · exact public law section
(18) in section 549(b) inserting “the trustee may not avoid under subsection (a) of this section” after “involuntary case,”,Pub. L. 109–8 title XII § 1214 · 119 Stat. 23
Inserted · 11 U.S.C. § 549(c)
Pub. L. 109–8 inserted “an interest in” after “transfer of” in two places
Substituted · 11 U.S.C. § 549(c)
Pub. L. 109–8 substituted “purchaser of such real property” for “purchaser of such property”
Substituted · 11 U.S.C. § 549(c)
Pub. L. 109–8 substituted “such interest” for “the interest”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 109–8 inserted “an interest in” after “transfer of” in two places and substituted “purchaser of such real property” for “purchaser of such property” and “such interest” for “the interest”.Enacted provision · exact public law section
SEC. 1214. POSTPETITION TRANSACTIONS. Section 549(c) of title 11, United States Code, is amended— (1) by inserting “an interest in” after “transfer of” each place it appears; (2) by striking “such property” and inserting “such real property”; and (3) by striking “the interest” and inserting “such interest”.Effective date note
Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
11 of 12 references resolved to an enrolled provision · 1 partial
Notes
Historical and Revision Notes
legislative statements
Section 549 of the House amendment has been redrafted in order to incorporate sections 342(b) and (c) of the Senate amendment. Those sections have been consolidated and redrafted in section 549(c) of the House amendment. Section 549(d) of the House amendment adopts a provision contained in section 549(c) of the Senate amendment.
senate report no. 95–989
This section modifies section 70d of current law [section 110(d) of former title 11]. It permits the trustee to avoid transfers of property that occur after the commencement of the case. The transfer must either have been unauthorized, or authorized under a section that protects only the transferor. Subsection (b) protects “involuntary gap” transferees to the extent of any value (including services, but not including satisfaction of a debt that arose before the commencement of the case), given after commencement in exchange for the transfer. Notice or knowledge of the transferee is irrelevant in determining whether he is protected under this provision.
Editorial Notes
Amendments1984–2005 · 4 rounds
2005
Subsec. (c). Pub. L. 109–8 inserted “an interest in” after “transfer of” in two places and substituted “purchaser of such real property” for “purchaser of such property” and “such interest” for “the interest”.
1994
Subsec. (b). Pub. L. 103–394 inserted “the trustee may not avoid under subsection (a) of this section” after “involuntary case,”.
1986
Subsec. (b). Pub. L. 99–554 substituted “made” for “that occurs”, and “to the extent” for “is valid against the trustee to the extent of”, and inserted “is” before “given”.
1984
Subsec. (a). Pub. L. 98–353, § 464(a)(1), (2), substituted “(b) or (c)” for “(b) and (c)” in provisions preceding par. (1) and inserted “only” between “authorized” and “under” in par. (2)(A). In the original of Pub. L. 98–353, subsec. (a)(2) of section 464 thereof ended with a period but was followed by pars. (3), (4), and (5). Such pars. (3), (4), and (5) purported to amend subsec. (a) of this section in ways not susceptible of execution. In a predecessor bill [S. 445], these pars. (3), (4), and (5) formed a part of a subsec. (b) of section 361 thereof which amended subsec. (b) of this section. Such subsec. (b) of section 361 of S. 445 was not carried into Pub. L. 98–353, § 464.
Subsec. (c). Pub. L. 98–353, § 464(c), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “The trustee may not avoid under subsection (a) of this section a transfer, to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value or to a purchaser at a judicial sale, of real property located other than in the county in which the case is commenced, unless a copy of the petition was filed in the office where conveyances of real property in such county are recorded before such transfer was so far perfected that a bona fide purchaser of such property against whom applicable law permits such transfer to be perfected cannot acquire an interest that is superior to the interest of such good faith or judicial sale purchaser. A good faith purchaser, without knowledge of the commencement of the case and for less than present fair equivalent value, of real property located other than in the county in which the case is commenced, under a transfer that the trustee may avoid under this section, has a lien on the property transferred to the extent of any present value given, unless a copy of the petition was so filed before such transfer was so perfected.”
Subsec. (d)(1). Pub. L. 98–353, § 464(d), substituted “or” for “and”.
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendment by Pub. L. 109–8 effective 180 days after , and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
Effective Date of 1994 Amendment
Amendment by Pub. L. 103–394 effective , and not applicable with respect to cases commenced under this title before , see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–554 effective 30 days after , see section 302(a) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after , see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.