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UNION BANK v. WOLAS Opinion of the Court

Thus, the Ninth Circuit concluded, its holding in CHG Int’l, Inc. dictated a reversal in this case. 921 F. 2d 968, 969 (1990).5 The importance of the question of law decided by the Ninth Circuit, coupled with the fact that the Sixth Circuit had interpreted § 547(c)(2) in a contrary manner, In re Finn, 909 F. 2d 903 (1990), persuaded us to grant the Bank’s petition for certiorari. 500 U. S. 915 (1991). I We shall discuss the history and policy of § 547 after examining its text. In subsection (b), Congress broadly authorized bankruptcy trustees to “avoid any transfer of an interest of the debtor in property” if five conditions are satisfied and unless one of seven exceptions defined in subsection (c) is applicable.6 In brief, the five characteristics of a voidable 5

In so holding, the Ninth Circuit rejected the Bank’s argument that the revolving line of credit in this case was not “long-term” because it was for less than one year. 921 F. 2d, at 969. Because we hold that the ordinary course of business exception applies to payments on long-term as well as short-term debt, we need not decide whether the revolving line of credit was a “long-term” debt. 6 Title 11 U. S. C. § 547(b) provides: “Except as provided in subsection (c) of this section, the trustee may avoid any transfer of an interest of the debtor in property— “(1) to or for the benefit of a creditor; “(2) for or on account of an antecedent debt owed by the debtor before such transfer was made; “(3) made while the debtor was insolvent; “(4) made— “(A) on or within 90 days before the date of the filing of the petition; or “(B) between ninety days and one year before the date of the filing of the petition, if such creditor at the time of such transfer was an insider; and “(5) that enables such creditor to receive more than such creditor would receive if— “(A) the case were a case under chapter 7 of this title; “(B) the transfer had not been made; and “(C) such creditor received payment of such debt to the extent provided by the provisions of this title.”