Texas Business & Commerce Code

§ 24.009 — DEFENSES, LIABILITY, AND PROTECTION OF TRANSFEREE

BC § 24.009Title 3. INSOLVENCY, FRAUDULENT TRANSFERS, AND FRAUD · Ch. 24. UNIFORM FRAUDULENT TRANSFER ACT

Statute text

(a)A transfer or obligation is not voidable under Section 24.005(a)(1) of this code 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 in this section, to the extent a transfer is voidable in an action by a creditor under Section 24.008(a)(1) of this code, the creditor may recover judgment for the value of the asset transferred, as adjusted under 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)(1) Except as provided by Subdivision (2) of this subsection, if the judgment under 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.

(2)The value of the asset transferred is not to be adjusted to include the value of improvements made by a good faith transferee, including:

(A)physical additions or changes to the asset transferred;

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Legislative history

Amended by Acts 1987, 70th Leg., ch. 1004, Sec. 1, eff. Sept. 1, 1987; Acts 1993, 73rd Leg., ch. 570, Sec. 11, eff. Sept. 1, 1993.