In the case of Manufacturers Trust Co., Trustee, v. Becker et al., 1949, the U.S Supreme Court was tasked with determining whether a bankruptcy trustee could recover payments made by an insolvent debtor to its creditors within four months prior to filing for bankruptcy under Section 60b of the Bankruptcy Act. The debtor in question had borrowed money from two banks and repaid them shortly before declaring bankruptcy. The trustee argued that these repayments constituted preferential transfers which should be recovered and distributed among all creditors equally. The court held that while normally such payments would indeed be considered preferential transfers, there existed an exception when it came to enabling loans (loans given on good faith belief they would enable a company avoid insolvency). In this case, both banks had provided their loans believing they were helping the company stay solvent; hence their repayment did not constitute unfair preference over other creditors. Therefore, despite being paid within four months prior to declaration of bankruptcy - usually grounds for recovery by trustees - these particular transactions were protected due to their nature as enabling loans intended at averting insolvency rather than defrauding other creditors.

In the dissenting opinion for Manufacturers Trust Co. v. Becker, Justice Jackson argued that the majority's decision to allow a trustee in bankruptcy to set aside preferential transfers of property was incorrect and inconsistent with previous rulings by the Court. He contended that this ruling would undermine confidence in commercial transactions because it allowed trustees to undo deals made before bankruptcy proceedings began, even if those deals were made in good faith and without any intention of defrauding creditors or evading debt obligations. Furthermore, he believed that such an interpretation of Section 60b of the Bankruptcy Act went beyond what Congress intended when it enacted this law; rather than protecting all creditors equally as intended by Congress, this interpretation favored some over others based on their relationship with the debtor or timing of their transaction.