The "Devil's Dictionary" is a quick-reference guide for commercial lenders and other restructuring professionals. In this series, we highlight many of the buzz words found in the Dictionary and used in today's bankruptcy arena.

STRONG ARM POWERS: The right of a debtor to avoid unperfected liens and other transfers through the Code-created mechanism of allowing the debtor to assume the status of a hypothetical lien creditor or bona fide purchaser of real estate. The strong arm powers are also frequently employed to avoid unperfected security interests and unrecorded real estate liens. The strong arm powers allow the debtor to avoid transfers by using state fraudulent transfer statutes that usually have longer look-back periods than the two year Code provision.

Bankruptcy Code § 544. See also Bona Fide Purchaser, Fraudulent Transfer, Hypothetical Lien Creditor, Perfected.

"The Devil's Dictionary" is an excellent reference tool that reflects the collective wisdom of its four authors, Brett Anders, Jim Bird, David Ferguson, and Dan Flanigan, who have a combined total of more than 110 years working in the forefront of real estate and other commercial finance, loan enforcement, financial restructuring and bankruptcy law.