United Western Bancorp Inc (fka UWBKQ)

[LGL8054]

Insiders
The Code treats insiders differently than other creditors. Insiders include a debtor's corporate officers, their family members, general partners, as well as corporate affiliates of the debtor. Transfers made to these creditors are subject to a look-back period of one year rather than the standard 90 days. However, the presumption that the debtor is insolvent applies only to the 90-day window. Thus, if the trustee sues an insider for return of a transfer made more than 90 days before the filing of the petition, the trustee must prove that the debtor was insolvent at the time of the transfer.

After the 2005 amendments, transfers to a noninsider that occur between 90 days and one year of the petition filing that are avoided as benefitting an insider creditor are only avoided as to the insider. So if a debtor transfers money to a noninsider bank to pay down a loan 100 days prior to filing bankruptcy, any avoidance of the transfer would operate against an insider who guaranteed the loan, but not against the bank.