Defense ~ Transferee Good Faith For Value
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- 2022.06.20 ... Understanding The Limits Of The Transferee's Good Faith Defense In Voidable Transaction Law
ARTICLES ON THE GOOD FAITH DEFENSE
- 2019.05.20 ... Good Faith Not Enough For Transferee To Establish Fraudulent Transfer Defense In Hawk
- 2017.05.30 ... The Good Faith Transferee Defined In Nautilus
- 2014.11.18 ... Positive Health Of The Fraudulent Transferee's Good Faith Defense
- 2013.10.30 ... Good Faith Transferees And The Perils Of Third-Party Payers
- 2012.10.29 ... Elephants And Donkeys Find Unhappiness In Sir Scam-A-Lot's Court
(d) Notwithstanding voidability of a transfer or an obligation under this [Act], a good-faith transferee or obligee is entitled, to the extent of the value given the debtor for the transfer or obligation, to:
(d) Notwithstanding voidability of a transfer or an obligation under this [Act], 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 an interest in the asset transferred;
(2) enforcement of an obligation incurred; or
(3) a reduction in the amount of the liability on the judgment.
(1) A party that seeks to invoke subsection (a), (d), (e), or (f) has the burden of proving the applicability of that subsection.
(2) Except as otherwise provided in paragraphs (3) and (4), the creditor has the burden of proving each applicable element of subsection (b) or (c).
(3) The transferee has the burden of proving the applicability to the transferee of subsection (b)(1)(ii)(A) or (B).
(4) A party that seeks adjustment under subsection (c) has the burden of proving the adjustment.
- {Section 8(e) is considered in the sections to which it applies, being §§ 4(a)(2) and 5}{Section 8(f) is considered in Section 5(b) which is the only section to which it applies.}
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(:title Defense ~ Transferee Good Faith For Value:) (:Summary: Defense ~ Transferee Good Faith For Value::) (:description Defense ~ Transferee Good Faith For Value::) (:keywords voidable transaction, uvta, fraudulent transfer, ufta, fraudulent conveyance, defense, transferee, good faith, value, reasonably equivalent value:)
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Defense_Good_Faith Defenses Mainuvta08agoodfaithrev
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TRANSFEREE GOOD FAITH FOR VALUE DEFENSE
TRANSFEREE GOOD FAITH FOR VALUE DEFENSE § 8.
(a) A transfer or obligation is not voidable under Section 4(a)(1) against a person that took in good faith and for a reasonably equivalent value given the debtor or against any subsequent transferee or obligee.
(d) Notwithstanding voidability of a transfer or an obligation under this [Act], 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 an interest in the asset transferred;
(2) enforcement of an obligation incurred; or
(3) a reduction in the amount of the liability on the judgment.
(g) The following rules determine the burden of proving matters referred to in this section:
(1) A party that seeks to invoke subsection (a), (d), (e), or (f) has the burden of proving the applicability of that subsection.
(2) Except as otherwise provided in paragraphs (3) and (4), the creditor has the burden of proving each applicable element of subsection (b) or (c).
(3) The transferee has the burden of proving the applicability to the transferee of subsection (b)(1)(ii)(A) or (B).
(4) A party that seeks adjustment under subsection (c) has the burden of proving the adjustment.
(h) The standard of proof required to establish matters referred to in this section is preponderance of the evidence.
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GENERAL RULE 8(a)
(a) A transfer or obligation is not voidable under Section 4(a)(1) against a person that took in good faith and for a reasonably equivalent value given the debtor or against any subsequent transferee or obligee.
TRANSFEREE'S SET-OFF 8(d)
- {Section 8(b) and (c) are considered in reference to Creditor's Remedies}
(d) Notwithstanding voidability of a transfer or an obligation under this [Act], 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 an interest in the asset transferred;
(2) enforcement of an obligation incurred; or
(3) a reduction in the amount of the liability on the judgment.
SECTION 8 BURDEN 8(g)
(g) The following rules determine the burden of proving matters referred to in this section:
(1) A party that seeks to invoke subsection (a), (d), (e), or (f) has the burden of proving the applicability of that subsection.
(2) Except as otherwise provided in paragraphs (3) and (4), the creditor has the burden of proving each applicable element of subsection (b) or (c).
(3) The transferee has the burden of proving the applicability to the transferee of subsection (b)(1)(ii)(A) or (B).
(4) A party that seeks adjustment under subsection (c) has the burden of proving the adjustment.
SECTION 8 STANDARD OF PROOF 8(h)
(h) The standard of proof required to establish matters referred to in this section is preponderance of the evidence.
BANKRUPTCY CODE § 548
(a)
(c) Except to the extent that a transfer or obligation voidable under this section is voidable under section 544, 545, or 547 of this title, a transferee or obligee of such a transfer or obligation that takes for value and in good faith has a lien on or may retain any interest transferred or may enforce any obligation incurred, as the case may be, to the extent that such transferee or obligee gave value to the debtor in exchange for such transfer or obligation.
(d)
BANKRUPTCY CODE § 550
(b) The trustee may not recover under section [1] (a)(2) of this section from—
(e)
- (1) A good faith transferee from whom the trustee may recover under subsection (a) of this section has a lien on the property recovered to secure the lesser of—(A) the cost, to such transferee, of any improvement made after the transfer, less the amount of any profit realized by or accruing to such transferee from such property; and(B) any increase in the value of such property as a result of such improvement, of the property transferred.(2) In this subsection, “improvement” includes—(A) physical additions or changes to the property transferred;(B) repairs to such property;(C) payment of any tax on such property;(D) payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and(E) preservation of such property.
COURT OPINIONS: TRANSFEREE'S GOOD FAITH DEFENSE
- Hawk v. CIR, 2019 WL 2120170 (6th Cir., May 15, 2019).UBS Financial Services, Inc. v. Lacava, 2018 Ohio 3055, 2018 WL 3689450 (Ohio App., Aug. 2, 2018).Nautilus, Inc. v. Yang, 2017 WL 1422602 (Cal.App., 4th Distr., 2017).NOTE: Court opinions on the reasonably equivalent value element of transferee's good faith are covered on the webpage for court opinions on value and reasonably equivalent value.
TRANSFEREE GOOD FAITH TOPICS AND OPINIONS
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