When Is a Preferential Transfer Required to Be Recorded?

In the recent case of Carey v. Donohue, 36 Sup. Ct. 386, the Supreme Court of the United States has passed on a question that has for years been vexing the Circuit Courts of Appeals, namely: When is the recording of a preferential transfer required under § 60 of the\u27Bankruptcy Act of 1898 as amended in 1903 and 1910. § 60a (as amended in 1903) defines a preference as a transaction by which property of an insolvent debtor is transferred, within four months before his bankruptcy, in such a way that the debt owing to one of his creditors will be paid in a greater percentage than the debts owing to other creditors, and adds: Where the preference consists in a transfer, such period of four months shall not expire until four months after the date of the recording or registering of the transfer, if by law such recording or registering is required. § 60b (as amended in 1903 and in 1910) provides that the debtor\u27s trustee in bankruptcy may recover property so transferred preferentially, if the preferred creditor had reasonable cause to believe that a preference was to be effected at the time of the transfer or of the recording or registering of the transfer if by law recording or registering thereof is required, such time being within four months before bankruptcy