The Chapter 7 Debtor paid for goods at Menards, a home improvement store, for the benefit of non-debtor entities. In each transaction, an agent of the non-debtor entity would pick out goods, take it to the cash register, use the Debtor’s credit card (which he was authorized to use), and then take the goods out of the store for use by the non-debtor entity. The Trustee alleged both actual and constructive fraud and sought to recover all payments the Debtor made. Because Menard gave value to the debtor, as that term is understood in federal fraudulent conveyance law, it is not liable to return the payments as a good-faith transferee, even though third parties ultimately received the goods.

Statute: 11 U.S.C. §548(c)