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(a) A transfer or an obligation is not voidable under
paragraph (1) of subdivision (a) of Section 3439.04, against a person
who took in good faith and for a reasonably equivalent value or
against any subsequent transferee or obligee.
(b) Except as otherwise provided in this section, to the extent a
transfer is voidable in an action by a creditor under paragraph (1)
of subdivision (a) of Section 3439.07, the creditor may recover
judgment for the value of the asset transferred, as adjusted under
subdivision (c), or the amount necessary to satisfy the creditor’s
claim, whichever is less. The judgment may be entered against the
(1) The first transferee of the asset or the person for whose
benefit the transfer was made.
(2) Any subsequent transferee other than a good faith transferee
who took for value or from any subsequent transferee.
(c) If the judgment under subdivision (b) is based upon the value
of the asset transferred, the judgment shall 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 chapter, a good faith transferee or obligee is entitled,
to the extent of the value given the debtor for the transfer or
obligation, to the following:
(1) A lien on or a right to retain any interest in the asset
(2) Enforcement of any obligation incurred.
(3) A reduction in the amount of the liability on the judgment.
(e) A transfer is not voidable under paragraph (2) of subdivision
(a) of Section 3439.04 or Section 3439.05 if the transfer results
from the following:
(1) Termination of a lease upon default by the debtor when the
termination is pursuant to the lease and applicable law.
(2) Enforcement of a lien in a noncollusive manner and in
compliance with applicable law, including Division 9 (commencing with
Section 9101) of the Commercial Code, other than a retention of
collateral under Sections 9620 and 9621 of the Commercial Code and
other than a voluntary transfer of the collateral by the debtor to
the lienor in satisfaction of all or part of the secured obligation.
A cause of action with respect to a fraudulent transfer or
obligation under this chapter is extinguished unless action is
brought pursuant to subdivision (a) of Section 3439.07 or levy made
as provided in subdivision (b) or (c) of Section 3439.07:
(a) Under paragraph (1) of subdivision (a) of Section 3439.04,
within four years after the transfer was made or the obligation was
incurred or, if later, within one year after the transfer or
obligation was or could reasonably have been discovered by the
(b) Under paragraph (2) of subdivision (a) of Section 3439.04 or
Section 3439.05, within four years after the transfer was made or the
obligation was incurred.
(c) Notwithstanding any other provision of law, a cause of action
with respect to a fraudulent transfer or obligation is extinguished
if no action is brought or levy made within seven years after the
transfer was made or the obligation was incurred.