28 U.S.C. § 3307 : US Code - Section 3307: Defenses, liability, and protection of transferee

Search 28 U.S.C. § 3307 : US Code - Section 3307: Defenses, liability, and protection of transferee

(a) Good Faith Transfer. - A transfer or obligation is not
voidable under section 3304(b) with respect to a person who took in
good faith and for a reasonably equivalent value or against any
transferee or obligee subsequent to such person.
(b) Limitation. - Except as provided in subsection (d), to the
extent a transfer is voidable in an action or proceeding by the
United States under section 3306(a)(1), the United States may
recover judgment for the value of the asset transferred, but not to
exceed the judgment on a debt. 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 any subsequent transferee of
such good-faith transferee.
(c) Value of Asset. - For purposes of subsection (b), the value
of the asset is the value of the asset at the time of the transfer,
subject to adjustment as the equities may require.
(d) Rights of Good Faith Transferees and Obligees. -
Notwithstanding voidability of a transfer or an obligation under
this subchapter, 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) Exceptions. - A transfer is not voidable under section
3304(a) or section 3304(b)(2) 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 or its equivalent in
effect in the State where the property is located.
(f) Limitation of Voidability. - A transfer is not voidable under
section 3304(a)(2) -
(1) to the extent the insider gives new value to or for the
benefit of the debtor after the transfer is made unless the new
value is 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 both present value given for that
purpose and an antecedent debt of the debtor.