Oklahoma § 24-120 - Voidable and nonvoidable transfers - Creditor's remedies

§ 24-120. Voidable and nonvoidable transfers - Creditor's remedies

and limitations thereon.

A. A transfer or obligation is not voidable as provided for in

paragraph 1 of subsection A of Section 5 of this act 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 for in this section, to the

extent a transfer is voidable in an action by a creditor pursuant to

the provisions of paragraph 1 of subsection A of Section 8 of this

act, the creditor may recover judgment for the value of the asset

transferred, as adjusted in accordance with the provisions of

subsection C of this section, or the amount necessary to satisfy the

creditor's claim, whichever is less. The judgment may be entered

against:

Oklahoma Statutes - Title 24. Debtor and Creditor

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 from any subsequent transferee.

C. If the judgment provided for in subsection B of this section

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

pursuant to the provisions of the Uniform Fraudulent Transfer Act, 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.

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.

F. A transfer is not voidable pursuant to the provisions of

subsection B of Section 6 of this act:

1. To the extent the insider gave new value to or for the

benefit of the debtor after the transfer was made unless the new

value was secured by a valid lien; or

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 present value given for that purpose

as well as an antecedent debt of the debtor.

Added by Laws 1986, c. 100, § 9, eff. Nov. 1, 1986.