33-208. Defenses, liability and protection of transferee.
33-208
33-208. Defenses, liability and protection oftransferee.(a) A transfer or obligation is not voidable under subsection(a)(1) of K.S.A. 33-204 against a person who took in good faith andfor areasonably equivalent value or against any subsequent transferee or obligee.
(b) Except as otherwise provided in this section, to the extent a transferis voidable in an action by a creditor under subsection (a)(1) of K.S.A.33-207,the creditor may recover judgment for the value of the asset transferred, asadjusted under subsection (c), or the amount necessary to satisfy thecreditor's claim, whichever is less. The judgment may be entered against:
(1) The first transferee of the asset or the person for whose benefit thetransfer was made; or
(2) any subsequent transferee other than a good faith transferee who tookfor value or from any subsequent transferee.
(c) If the judgment under subsection (b) is based upon the value of theassettransferred, the judgment must be for an amount equal to the value of the assetat the time of the transfer, subject to adjustment as the equities may require.
(d) Notwithstanding voidability of a transfer or an obligation under thisact, a good faith transferee or obligee is entitled, to the extent of the valuegiven 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 subsection (a)(2) of K.S.A.33-204 or33-205 if the transfer results from:
(1) Termination of a lease upon default by the debtor when the terminationis pursuant to the lease and applicable law; or
(2) enforcement of a security interest in compliance with article 9 of theuniform commercial code.
(f) A transfer is not voidable under subsection (b) of K.S.A.33-205:
(1) To the extent the insider gave new value to or for the benefit of thedebtor after the transfer was made unless the new value was secured by a validlien;
(2) if made in the ordinary course of business or financial affairs of thedebtor and the insider; or
(3) if made pursuant to good faith effort to rehabilitate the debtor and thetransfer secured present value given for that purpose as well as an antecedentdebt of the debtor.
History: L. 1998, ch. 13, § 8; Jan. 1, 1999.