County of Ontario, New York v. Brian Gunsalus, et al.

BFP v. Resolution Trust Corp., 511 U.S. 531 (1994) (“BFP”) held the auction price obtained at a mortgage foreclosure conducted in accordance with the statutory requirements of state law constitutes “reasonably equivalent value” in the context of a fraudulent conveyance action under 11 U.S.C. § 548 of the Bankruptcy Code. The question presented here is: did the Second Circuit err in refusing to extend the holding of BFP to a lawfully conducted tax foreclosure, where New York tax foreclosure law provides for ample notice, opportunity to cure and judicial oversight of the process, and where there is no evidence of a clear and manifest intent by Congress to allow 11 U.S.C. § 548 to impinge upon the important state interests in securing real estate titles and collecting real property taxes?