2023 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.