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

Oklahoma Statutes AnnotatedTitle 24. Debtor and Creditor

Oklahoma Statutes Annotated
Title 24. Debtor and Creditor (Refs & Annos)
Chapter 7. Uniform Fraudulent Transfer Act (Refs & Annos)
24 Okl.St.Ann. § 120
§ 120. Voidable and nonvoidable transfers--Creditor's remedies and limitations thereon
Currentness
A. A transfer or obligation is not voidable as provided for in paragraph 1 of subsection A of Section 5 of this act1 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,2 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:
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,3 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. A transfer is not voidable pursuant to the provisions of paragraph 2 of subsection A of Section 5 or Section 6 of this act4 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.5
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.

Credits

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

Footnotes

1
Title 24, § 116.
2
Title 24, § 119.
3
Title 24, § 112 et seq.
4
Title 24, § 116 or 117.
5
Title 12A, § 9-101 et seq.
24 Okl. St. Ann. § 120, OK ST T. 24 § 120
Current with emergency effective legislation through Chapter 3 of the Second Regular Session of the 59th Legislature (2024). Some sections may be more current, see credits for details.
End of Document