Legal Dictionary of Pakistan

Durrett rule

Bankruptcy. The principle that a transfer of property in exchange for less than 70% of the property's value should be invalidated as a preferential transfer. Durrett u. Washington Natl Ins. Co., 621 F.2d 201 (5th Cir. 1980); 11 USCA § 548. 0 This rule has been applied most frequently to foreclosure sales. But it has essentially been overruled by the U.S. Supreme Court, which has held that, at least for mortgage foreclosure sales, the price received at a regularly conducted, noncollusive sale represents a reasonably equivalent value of the property, and the transfer is presumed valid. BFP u. Resolution Trust Corp., 511 U.S. 531, 114 S.Ct. 1757 (1994).