28-U.S.C.-3307
§3307 – Defenses, Liability, and Protection of Transferee
Pathway
Title 28 > Part VI > Chapter 176 > Subchapter D > Section 3307
Details
- Reference: Section 3307
- Legend: §3307 – Defenses, Liability, and Protection of Transferee
- USCode Year: 2013
Provision Content
(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.
(Added Pub. L. 101–647, title XXXVI, §3611, Nov. 29, 1990, 104 Stat. 4963.)
U.S. Encyclopedia of Law Coverage
28-U.S.C.-3201 in the Legal Encyclopedia: Judiciary
In this entry about 28-U.S.C.-3201, find legal reference material, bibliographies and premiere content related to judiciary in the American Encyclopedia of Law, presenting a comprehensive view of the United States judiciary-specific issues, written by authorities in the field.
28-U.S.C.-3104 in the Legal Encyclopedia: Proceedings
In this entry about 28-U.S.C.-3104, find legal reference material, bibliographies and premiere content related to proceedings in the American Encyclopedia of Law, presenting a comprehensive view of the United States proceedings-specific issues, written by authorities in the field.
28-U.S.C.-3301 in the Legal Encyclopedia: Federal Debt Collection Procedure
In this entry about 28-U.S.C.-3301, find legal reference material, bibliographies and premiere content related to federal debt collection procedure in the American Encyclopedia of Law, presenting a comprehensive view of the United States federal debt collection procedure-specific issues, written by authorities in the field.
Leave a Reply