§ 39-23.8. Defenses, liability, and protection of transferee. - North Carolina Statutes

§39‑23.8.  Defenses, liability, and protection of transferee.

(a)        A transfer orobligation is not voidable under G.S. 39‑23.4(a)(1) against a person whotook in good faith and for a reasonably equivalent value or against anysubsequent transferee or obligee.

(b)        Except as otherwiseprovided in this section, to the extent a transfer is voidable in an action bya creditor under G.S. 39‑23.7(a)(1), the creditor may recover judgmentfor the value of the asset transferred, as adjusted under subsection (c) of thissection, or the amount necessary to satisfy the creditor's claim, whichever isless. The judgment may be entered against:

(1)        The first transfereeof the asset or the person for whose benefit the transfer was made; or

(2)        Any subsequenttransferee other than a good‑faith transferee who took for value or fromany subsequent transferee.

(c)        If the judgmentunder subsection (b) of this section is based upon the value of the assettransferred, the judgment shall be for an amount equal to the value of the assetat the time of the transfer, subject to adjustment as the equities may require.

(d)        Notwithstandingvoidability of a transfer or an obligation under this Article, a good‑faithtransferee or obligee is entitled, to the extent of the value given the debtorfor the transfer or obligation, to:

(1)        A lien on or a rightto retain any interest in the asset transferred;

(2)        Enforcement of anyobligation incurred; or

(3)        A reduction in theamount of the liability on the judgment.

(e)        A transfer is notvoidable under G.S. 39‑23.4(a)(2) or G.S. 39‑23.5 if the transferresults from:

(1)        Termination of alease upon default by the debtor when the termination is pursuant to the leaseand applicable law; or

(2)        Enforcement of asecurity interest in compliance with Article 9 of Chapter 25 of the GeneralStatutes, the Uniform Commercial Code.

(f)         A transfer is notvoidable under G.S. 39‑23.5(b):

(1)        To the extent theinsider gave new value to or for the benefit of the debtor after the transferwas made unless the new value was secured by a valid lien;

(2)        If made in theordinary course of business or financial affairs of the debtor and the insider;or

(3)        If made pursuant toa good‑faith effort to rehabilitate the debtor, and the transfer securedpresent value given for that purpose as well as an antecedent debt of thedebtor. (1997‑291, s. 2.)