DURRETT RULE

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 v. Washington

Nat’l Ins. Co., 621  F.2d 201 (5th Cir. 1980); 11 USCA § 548. • 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 v. Resolution Trust Corp., 511 U.S. 531, 114 S.Ct. 1757 (1994)

[Cases: Bankruptcy    2650. C.J.S. Bankruptcy § 156.] [Blacks Law 8th]