§ 6-16-8 - Defenses, liability, and protection of transferee.
SECTION 6-16-8
§ 6-16-8 Defenses, liability, andprotection of transferee. – (a) A transfer or obligation is not voidable under § 6-16-4(a)(1) againsta person who took in good faith and for a reasonably equivalent value oragainst any subsequent transferee or obligee.
(b) Except as otherwise provided in this section, to theextent a transfer is voidable in an action by a creditor under §6-16-7(a)(1), the creditor may recover judgment for the value of the assettransferred, as adjusted under subsection (c) of this section, or the amountnecessary to satisfy the creditor's claim, whichever is less. The judgment maybe entered against:
(1) The first transferee of the asset or the person for whosebenefit the transfer was made; or
(2) Any subsequent transferee other than a good faithtransferee who took for value or from any subsequent transferee.
(c) If the judgment under subsection (b) is based upon thevalue of the asset transferred, the judgment must be for an amount equal to thevalue of the asset at the time of the transfer, subject to adjustment as theequities may require.
(d) Notwithstanding voidability of a transfer or anobligation under this chapter, a good faith transferee or obligee, to theextent of the value given the debtor for the transfer or obligation, isentitled to:
(1) A lien on or a right to retain any interest in the assettransferred;
(2) Enforcement of any obligation incurred; or
(3) A reduction in the amount of the liability on thejudgment.
(e) A transfer is not voidable under § 6-16-4(a)(2) or6-16-5 if the transfer results from:
(1) Termination of a lease upon default by the debtor whenthe termination is pursuant to the lease and applicable law; or
(2) Enforcement of a security interest in compliance withchapter 9 of title 6A of the Uniform Commercial Code.
(f) A transfer is not voidable under § 6-16-5(b):
(1) To the extent the insider gave new value to or for thebenefit of the debtor after the transfer was made unless the new value wassecured by a valid lien;
(2) If made in the ordinary course of business or financialaffairs of the debtor and the insider; or
(3) If made pursuant to a good faith effort to rehabilitatethe debtor and the transfer secured present value given for that purpose aswell as an antecedent debt of the debtor.