§ 32-18-2-18 — Person taking in good faith and for equivalent value; creditor's remedies; limits on recovery; judgments based on value of asset transferred; remedies of good faith transferees or obligees; transfer resulting from lease termination or enforcement of security interest; burdens of proof

(a) A transfer or an obligation is not voidable
under section 14(a)(1) of this chapter 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 that a transfer is avoidable in an action by a
creditor under section 17(a)(1) of this chapter, the following rules
apply:
(1) Except as otherwise provided in this chapter, the creditor may
recover judgment for the value of the asset transferred, as
adjusted under subsection (c), or the amount necessary to satisfy
the creditor's claim, whichever is less. The judgment may be
entered against:
(A) the first transferee of the asset or the person for whose
benefit the transfer was made; or
(B) an immediate or mediate transferee of the first transferee,
other than:
(i) a good faith transferee that took for value; or
(ii) an immediate or mediate good faith transferee of a person
described in item (i).
(2) Recovery under section 17(a)(1) or 17(a)(2) of this chapter or
from the asset transferred or its proceeds, by levy or otherwise, is
available only against a person described in subdivision (1).
(c) If the judgment under subsection (b) 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 chapter, 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 section 14(a)(2) or section 15 of
this chapter if the transfer results from:
(1) termination of a lease upon default by the debtor when the
termination is permitted by the lease and applicable law; or
(2) enforcement of a security interest in compliance with Article
9 of the Uniform Commercial Code, other than acceptance of
collateral in full or partial satisfaction of the obligation it secures.
(f) The following rules determine the burden of proving matters
referred to in this section:
(1) A party that seeks to invoke subsection (a), (d), or (e) has the
burden of proving the applicability of that subsection.
(2) Except as otherwise provided in subdivisions (3) and (4), the
creditor has the burden of proving each applicable element of
subsection (b) or (c).
(3) The transferee has the burden of proving the applicability to
the transferee of subsection (b)(1)(B)(i) or (b)(1)(B)(ii).
(4) A party that seeks adjustment under subsection (c) has the
burden of proving the adjustment.
(g) The standard of proof required to establish matters referred to in
this section is by a preponderance of the evidence.
[Pre-2002 Recodification Citation: 32-2-7-18.]

Legislative History

As added by P.L.2-2002, SEC.3. Amended by P.L.61-2017, SEC.16.