NY Debt & Cred L § 277 (2021)
2021 New York Laws DCD - Debtor and Creditor Article 10 - Uniform Voidable Transactions Act. 277 - Defenses, Liability, and Protection of Transferee or Obligee.

§  277.  Defenses, liability, and protection of transferee or obligee. (a) A transfer or obligation is not  voidable  under  paragraph  one  of subdivision  (a)  of  section  two hundred seventy-three of this article against a person that took in good faith and for a reasonably equivalent value given the debtor or against any subsequent transferee or obligee.  (b) To the extent a transfer is avoidable in an action by  a  creditor under   paragraph   one  of  subdivision  (a)  of  section  two  hundred seventy-six of this article the following rules apply:  (1) Except as otherwise provided in this  section,  the  creditor  may recover  judgment  for  the  value of the asset transferred, as adjusted under subdivision (c) of  this  section,  or  the  amount  necessary  to satisfy  the  creditor's  claim,  whichever is less. The judgment may be entered against:  (i) the first transferee of the asset or the person for whose  benefit the transfer was made; or  (ii) an immediate or mediate transferee of the first transferee, other than:  (A) a good-faith transferee that took for value; or  (B)  an  immediate  or  mediate  good-faith  transferee  of  a  person described in clause (A) of this subparagraph.  (2)  Recovery  pursuant  to  paragraph  one  of  subdivision  (a)   or subdivision (b) of section two hundred seventy-six of this article of or from  the  asset  transferred  or its proceeds, by levy or otherwise, is available only against a person described in subparagraph (i) or (ii) of paragraph one of this subdivision.  (c) If the judgment under subdivision (b) of  this  section  is  based upon  the  value  of  the asset transferred, the judgment must be for an amount equal to the value of the asset at  the  time  of  the  transfer, subject to adjustment as the equities may require.  (d)  Notwithstanding  voidability of a transfer or an obligation under this article, 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.  (e) A transfer is not voidable under paragraph two of subdivision  (a) of section two hundred seventy-three or section two hundred seventy-four of this article 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 nine of the uniform commercial code, other than acceptance of  collateral  in full or partial satisfaction of the obligation it secures.  (f)  A  transfer  is not voidable under subdivision (b) of section two hundred seventy-four of this article:  (1) to the extent the insider gave new value to or for the benefit  of the  debtor  after  the  transfer was made, except to the extent the new value was 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 present value given for that purpose as well as an antecedent debt of the debtor.  (g) The following  rules  determine  the  burden  of  proving  matters referred to in this section:  (1)  A  party that seeks to invoke subdivision (a), (d), (e) or (f) of this section has  the  burden  of  proving  the  applicability  of  that subdivision.  (2)  Except as otherwise provided in paragraphs three and four of this subdivision, the creditor has the  burden  of  proving  each  applicable element of subdivision (b) or (c) of this section.  (3)  The transferee has the burden of proving the applicability to the transferee of clause (A) or (B) of subparagraph (ii) of paragraph one of subdivision (b) of this section.  (4) A party that  seeks  adjustment  under  subdivision  (c)  of  this section 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.