
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 28USC3307]

 
               TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE
 
                     PART VI--PARTICULAR PROCEEDINGS
 
             CHAPTER 176--FEDERAL DEBT COLLECTION PROCEDURE
 
           SUBCHAPTER D--FRAUDULENT TRANSFERS INVOLVING DEBTS
 
Sec. 3307. Defenses, liability, and protection of transferee

    (a) Good Faith Transfer.--A transfer or obligation is not voidable 
under section 3304(b) with respect to a person who took in good faith 
and for a reasonably equivalent value or against any transferee or 
obligee subsequent to such person.
    (b) Limitation.--Except as provided in subsection (d), to the extent 
a transfer is voidable in an action or proceeding by the United States 
under section 3306(a)(1), the United States may recover judgment for the 
value of the asset transferred, but not to exceed the judgment on a 
debt. The judgment may be entered against--
        (1) the first transferee of the asset or the person for whose 
    benefit the transfer was made; or
        (2) any subsequent transferee, other than a good faith 
    transferee who took for value or any subsequent transferee of such 
    good-faith transferee.

    (c) Value of Asset.--For purposes of subsection (b), the value of 
the asset is the value of the asset at the time of the transfer, subject 
to adjustment as the equities may require.
    (d) Rights of Good Faith Transferees and Obligees.--Notwithstanding 
voidability of a transfer or an obligation under this subchapter, 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 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.

    (e) Exceptions.--A transfer is not voidable under section 3304(a) or 
section 3304(b)(2) 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 9 of the Uniform Commercial Code or its equivalent in effect 
    in the State where the property is located.

    (f) Limitation of Voidability.--A transfer is not voidable under 
section 3304(a)(2)--
        (1) to the extent the insider gives new value to or for the 
    benefit of the debtor after the transfer is made unless the new 
    value is 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 both present value given for that 
    purpose and an antecedent debt of the debtor.

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104 Stat. 
4963.)

                  Section Referred to in Other Sections

    This section is referred to in sections 3303, 3304, 3306 of this 
title.
