LexisNexis ( December 20, 2017, 10:51 AM EST) -- In a notable piece of bankruptcy litigation, the Eighth Circuit has wrestled with the issue of whether a debtor's drawee bank, in allowing provisional settlement of checks presented through the clearinghouse, was making short-term "loans" to the drawer when the settlement created a negative collected balance on the day of presentment (Day-1). The debtor's bankruptcy trustee contended that the provisional settlements created a series of unsecured short-term loans that were repaid on Day-2 by incoming wire deposits. The trustee argued that the covering wires were "transfers on account of antecedent debt" that were voidable as preferences to the extent they occurred within 90 days of the debtor's Chapter 11 petition. In an adversary proceeding, the trustee sought recovery of over $61 million on this theory....