New Jersey § 15a:14-14

§ 15a:14-14.

a. For the purpose of this chapter, a preference arises when: (1) A corporation which, while insolvent, and within 4 months of the commencement

of a receivership action by or against it, transfers any property to or for the benefit

of a creditor for or on account of an antecedent debt; and (2) The effect of the transfer will be to enable the creditor to obtain a greater

percentage of a debt than some other creditor of the same class; and (3) The creditor receiving or to be benefited by the transfer, or the creditor's agent

acting with reference thereto, has, at the time when the transfer is made, reasonable

cause to believe that the corporation is insolvent. b. For the purpose of determining whether a preference has arisen: (1) A transfer of property other than real property shall be deemed to have been made

or suffered at a time when it became so far perfected that no subsequent lien obtainable

by legal or equitable proceedings on a simple contract could become superior to the

rights of the transferee; (2) A transfer of real property shall be deemed to have been made or suffered when

it became so far perfected that no subsequent bona fide purchase from the corporation

could create rights in the property superior to the rights of the transferee. c. If any transfer of real property is not so perfected against a bona fide purchase,

or if any transfer of other property is not so perfected against liens by legal or

equitable proceedings prior to the commencement of a receivership action it shall

be deemed to have been made immediately before the commencement of the action d. When a preference has arisen, the receiver may recover the property or, if it has

been converted, its value, from any person who has received or converted the property,

except a bona fide purchaser from or lienor of the corporation's transferee for a

present fair consideration. Where the bona fide purchaser or lienor has given less than that value, the person

shall nevertheless have a lien upon the property, but only to the extent of the consideration

actually given by that person. When a preference is by way of lien or security title, the Superior Court may on

due notice order the lien or title to be preserved for the benefit of the insolvent

corporation's estate, in which event the lien or title shall pass to the receiver. e. If a creditor has been preferred and afterward in good faith gives the corporation

further credit without security of any kind for property which becomes a part of the

insolvent corporation's property, the amount of the new credit remaining unpaid at

the time of the commencement of the receivership action may be set off against the

amount which would otherwise be recoverable from the creditor.