No extraterritorial application for Bankruptcy Code rules for recovering avoided transfers. A US District Court held that Bankruptcy Code Section 550(a), which allows a trustee to recover “property transferred to the extent that a transfer is avoided” under one of the Bankruptcy Code avoidance provisions, does not apply extraterritorially. The Securities Investor Protection Act trustee for Madoff securities sought to use Section 550(a) to recover assets transferred by foreign feeder funds abroad to their foreign customers. The Court held that although the chain of transfers originated in New York, that relationship was insufficient to make the recovery of otherwise foreign transfers into a domestic matter. The Court further found that even if Section 550(a) could be applied extraterritorially, such an application would be precluded here by considerations of international comity. (7/7/2014) SIPC v. Bernard L. Madoff Investment Securities, LLC.