A payment made in exchange for contemporaneous delivery of goods (a COD transaction) is not a payment 'in respect of an unsecured debt' under s 588FA(1) of the Corporations Law, even where the goods were manufactured before delivery and an invoice was raised before production was complete. The fact that work was done to create equipment before delivery does not convert a COD transaction into payment of an antecedent debt. For the s 588FG(2) defence, indicia of insolvency such as habitual late payment, dishonoured cheques, and changed trading terms must be assessed in the context of the parties' entire relationship and the creditor's overall knowledge of the debtor's business.
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