(740 ILCS 160/9) (from Ch. 59, par. 109)
Sec. 9.
(a) A transfer or obligation is not voidable under paragraph
(1) of subsection (a) of Section
5 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 paragraph (1) of
subsection (a) of Section 8, the
creditor may recover judgement 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:
(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 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 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) A transfer is not voidable under paragraph (2) of subsection (a) of
Section 5 or Section 6 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.
(f) A transfer is not voidable under subsection (b) of Section 6:
(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;
(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.
(Source: P.A. 86-814.)
|