“A security granted by a debtor within sixty days of his bankruptcy for a debt contracted before that period is reducible as a fraudulent preference. But security or payment granted in consideration of a novum debitum — a debt presently contracted — is not reducible although granted within the sixty days.” John Trayner, Trayner’s Latin Maxims 402 (4th ed. 1894).
nova debita
nova debita (noh-v[schwa] deb-i-t[schwa]). [Latin] Scots law. New debts, as distinguished from preexisting ones.
