Arizona Revised Statutes § 44-1008 Defenses, Liability And Protection Of Transferee

44-1008. Defenses, liability and protection of transferee

A. A transfer or obligation is not voidable under section 44-1004, subsection A, paragraph 1 against a person who took in good faith and for a reasonably equivalent value or against any subsequent transferee or obligee.

B. Except as otherwise provided in this section, to the extent a transfer is voidable in an action by a creditor under section 44-1007, subsection A, paragraph 1, the creditor may recover judgment for the value of the asset transferred, as adjusted under subsection C of this section, or the amount necessary to satisfy the creditor's claim, whichever is less. The judgment may be entered against either:

1. The first transferee of the asset or the person for whose benefit the transfer was made.

2. Any subsequent transferee other than a good faith transferee who took for value or from any subsequent transferee.

C. If the judgment under subsection B of this section is based on the value of the asset transferred, the judgment must be for an amount equal to the value of the asset at the time of the transfer, subject to adjustment as the equities may require.

D. Notwithstanding voidability of a transfer or an obligation under this article, a good faith transferee or obligee is entitled, to the extent of the value given the debtor for the transfer or obligation, to any of the following:

1. A lien on or a right to retain any interest in the asset transferred.

2. Enforcement of any obligation incurred.

3. A reduction in the amount of the liability on the judgment.

E. A transfer is not voidable under section 44-1004, subsection A, paragraph 2 or section 44-1005 if the transfer results from:

1. Termination of a lease on default by the debtor if the termination is pursuant to the lease and applicable law.

2. Enforcement of a security interest in compliance with title 47, chapter 9.

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Last modified: October 13, 2016