Source: http://law.justia.com/codes/us/2012/title-11/chapter-5/subchapter-iii/section-550/
Timestamp: 2017-09-22 18:37:00
Document Index: 278201962

Matched Legal Cases: ['§ 550', '§ 501', '§ 541', '§465', '§202', '§ 550', '§465', '§465', '§465', '§465', '§465', '§465']

THE ESTATE - 11 U.S.C. § 550 (2012) Liability of transferee of avoided transfer :: Title 11 - Bankruptcy :: 2012 US Code :: US Codes and Statutes :: US Law :: Justia
Justia US Law US Codes and Statutes US Code 2012 US Code Title 11 - Bankruptcy Chapter 5 - CREDITORS, THE DEBTOR, AND THE ESTATE (§§ 501 - 562) Subchapter III - THE ESTATE (§§ 541 - 562) Section 550 - Liability of transferee of avoided transfer
Sec. 550 - Liability of transferee of avoided transfer
Contains section 550
Source Credit Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2601; Pub. L. 98-353, title III, §465, July 10, 1984, 98 Stat. 379; Pub. L. 103-394, title II, §202, Oct. 22, 1994, 108 Stat. 4121.
Statutes at Large References 92 Stat. 2601
98 Stat. 379
THE ESTATE - 11 U.S.C. § 550 (2012)
Section 550 prescribes the liability of a transferee of an avoided transfer, and enunciates the separation between the concepts of avoiding a transfer and recovering from the transferee. Subsection (a) permits the trustee to recover from the initial transferee of an avoided transfer or from any immediate or mediate transferee of the initial transferee. The words “to the extent that” in the lead in to this subsection are designed to incorporate the protection of transferees found in proposed 11 U.S.C. 549(b) and 548(c). Subsection (b) limits the liability of an immediate or mediate transferee of the initial transferee if such secondary transferee takes for value, in good faith and without knowledge of the voidability of the transfer. An immediate or mediate good faith transferee of a protected secondary transferee is also shielded from liability. This subsection is limited to the trustee's right to recover from subsequent transferees under subsection (a)(2). It does not limit the trustee's rights against the initial transferee under subsection (a)(1). The phrase “good faith” in this paragraph is intended to prevent a transferee from whom the trustee could recover from transferring the recoverable property to an innocent transferee, and receiving a retransfer from him, that is, “washing” the transaction through an innocent third party. In order for the transferee to be excepted from liability under this paragraph, he himself must be a good faith transferee. Subsection (c) is a further limitation on recovery. It specifies that the trustee is entitled to only one satisfactory, under subsection (a), even if more than one transferee is liable.
1984—Subsec. (a). Pub. L. 98–353, §465(a), substituted “549, 553(b), or 724(a) of this title” for “549, or 724(a) of this title”.
Subsec. (d)(1)(A). Pub. L. 98–353, §465(b)(1), inserted “or accruing to” after “by”.
Subsec. (d)(1)(B). Pub. L. 98–353, §465(b)(2), substituted “the value of such property” for “value”.
Subsec. (d)(2)(D). Pub. L. 98–353, §465(b)(3), substituted “payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and” for “payment of any debt secured by a lien on such property.”
Subsec. (d)(2)(E), (F). Pub. L. 98–353, §465(b)(3), (4), struck out subpar. (E) “discharge of any lien against such property that is superior or equal to the rights of the trustee; and” and redesignated subpar. (F) as (E).
Subsec. (e)(1). Pub. L. 98–353, §465(c), substituted “or” for “and”.