Transferee's defenses, liability, and protections
Sec. 18. (a) A transfer or an obligation is not voidable under
section 14(1) of this chapter 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 chapter, to the extent a
transfer is voidable in an action by a creditor under section 17(a)(1)
of this chapter, the creditor may recover judgment for the value of
the asset transferred, as adjusted under subsection (c), or the amount
necessary to satisfy the creditor's claim, whichever is less. The
judgment may be entered against:
(1) the first transferee of the asset or the person for whose
benefit the transfer was made; or
(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) is based upon 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 chapter, a good faith transferee or obligee is entitled, to
the extent of the value given the debtor for the transfer or obligation,
to:
(1) a lien on or a right to retain any interest in the asset
transferred;
(2) enforcement of any obligation incurred; or
(3) a reduction in the amount of the liability on the judgment.
(e) A transfer is not voidable under section 14(2) or section 15 of
this chapter if the transfer results from:
(1) termination of a lease upon default by the debtor when the
termination is permitted by the lease and applicable law; or
(2) enforcement of a security interest in compliance with Article
9 of the Uniform Commercial Code.
As added by P.L.2-2002, SEC.3.
Last modified: May 24, 2006