[§651C-8]  Defenses, liability, and
protection of transferee.  (a)  A transfer or obligation is not voidable
under section 651C-4(a)(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 651C-7(a)(1), 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 651C-4(a)(2)
or section 651C-5 if the transfer results from:



(1)  Termination of a lease upon default by the debtor
when the termination is pursuant to the lease and applicable law; or



(2)  Enforcement of a security interest in compliance
with Article 9 of the Uniform Commercial Code.



(f)  A transfer is not voidable under section
651C-5(b):



(1)  To the extent the insider gave new value to or
for the benefit of the debtor after the transfer was made unless the new value
was secured by a valid lien;



(2)  If made in the ordinary course of business or
financial affairs of the debtor and the insider; or



(3)  If made pursuant to a good-faith effort to
rehabilitate the debtor and the transfer secured present value given for that
purpose as well as an antecedent debt of the debtor. [L 1985, c 216, pt of §1]



 



Case Notes



 



  Fraudulent transfers, discussed.  916 F.2d 528.