Sec. 202. Prevention of fraudulent transfers

405 words·~2 min read·/bill/116/s/2155/is/section-202

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Section 546(e) of title 11, United States Code, is amended by inserting after 548(b) of this title, the following: and except in the case of a transfer made in connection with a change in control transaction, as defined in section 3 of the . Stop Wall Street Looting Act , or during the protected period, as defined in section 548(f) of this title, Section 548 of title 11, United States Code, is amended by adding at the end the following: In this subsection— the terms change in control transaction , control person , and target firm have the meanings given those terms in section 3 of the Stop Wall Street Looting Act ; and the term protected period means the shorter of— the 8-year period beginning on the date on which a change in control transaction closed; or the period beginning on the date on which a change in control transaction closed and ending on the earliest subsequent date on which a public offering of a controlling share of the common equity securities of the target firm occurs.

For purposes of this section, the debtor is presumed to have made a transfer or incurred an obligation described in subparagraphs

(A)and

(B)of subsection (a)(1) if— the transfer is made to or obligation is incurred by a target firm or an affiliate in connection with a change in control transaction; or the transfer is made to a target firm or an affiliate by, or obligation is incurred by a target firm or an affiliate from, a control person, an affiliate, or an insider during a protected period. For the purposes of this section, a court shall, in analyzing related transactions, link together as a single transaction any interrelated yet formally distinct steps in an integrated transaction (commonly known as the step transaction doctrine ). . Section 3306(b) of title 28, United States Code, is amended— in paragraph (2), by striking or at the end; in paragraph (3), by striking the period at the end and inserting ; or ; and by adding at the end the following: within 8 years after the transfer was made or the obligation was incurred, if the transfer was made or the obligation was incurred— in connection with a change in control transaction, as defined in section 3 of the Stop Wall Street Looting Act ; or during a protected period, as defined in section 548(f) of title 11. .