Defenses, liability, and protection of transferee.

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(1) A transfer or obligation is not voidable under section 38-8-105 (1)(a) against a person who took in good faith and for a reasonably equivalent value or against any subsequent transferee or obligee.

(2) Except as otherwise provided in this section, to the extent a transfer is voidable in an action by a creditor under section 38-8-108 (1)(a), the creditor may recover judgment for the value of the asset transferred, as adjusted under subsection (3) of this section, or the amount necessary to satisfy the creditor's claim, whichever is less. The judgment may be entered against:

  1. The first transferee of the asset or the person for whose benefit the transfer wasmade; or

  2. Any subsequent transferee other than a good-faith transferee or obligee who took forvalue or from any subsequent transferee or obligee.

  1. If the judgment under subsection (2) of this section is based upon the value of theasset 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.

  2. Notwithstanding voidability of a transfer or an obligation under this article, a goodfaith 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.

(5) A transfer is not voidable under section 38-8-105 (1)(b) or 38-8-106 if the transfer results from:

  1. Termination of a lease upon default by the debtor when the termination is pursuant tothe lease and applicable law; or

  2. Enforcement of a security interest in compliance with the provisions of the "UniformCommercial Code - Secured Transactions", article 9 of title 4, C.R.S.

(6) A transfer is not voidable under section 38-8-106 (2):

  1. To the extent the insider gave new value to or for the benefit of the debtor after thetransfer was made unless 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 theinsider; or

  3. If made pursuant to a good-faith effort to rehabilitate the debtor and the transfersecured present value given for that purpose as well as an antecedent debt of the debtor.

Source: L. 91: Entire article added, p. 1687, § 1, effective July 1.

Editor's note - Colorado legislative change: This section was numbered as section 8 in the uniform act. In subsection (2) (b), the phrase "or obligee" has been added after "transferee" in both places where "transferee" appears.


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