strong-arm clause

strong-arm clause
The provision of the Bankruptcy Act that the trustee in bankruptcy, as to all property, whether or not coming into possession or control of the court upon which a creditor of the bankrupt could have obtained a lien by legal or equitable proceedings at the date of bankruptcy, shall be deemed vested as of such date with all the rights, remedies, and powers of a creditor than holding a lien thereon by such proceeding, whether or not such a creditor actually exists. Bankruptcy Act § 70(c); 11 USC § 110(c); 9 Am J2d Bankr § 857.

Ballentine's law dictionary. . 1998.

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