NRS 112.220 Avoidance of transfer or obligation: Protection of good faith transferee or obligee; recovery of judgment for value of asset transferred; certain transfers not voidable.

443 words·~2 min read·/nv/chapter-112-fraudulent-transfers-uniform-act/112-220·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. A transfer or obligation is not voidable under paragraph

(a)of subsection 1 of NRS 112.180 against a person who took in good faith and for a reasonably equivalent value or against any subsequent transferee or obligee.

2. Except as otherwise provided in this section, to the extent a transfer is voidable in an action by a creditor under paragraph

(a)of subsection 1 of NRS 112.210 , the creditor may recover judgment for the value of the asset transferred, as adjusted under subsection 3 of this section, or the amount necessary to satisfy the creditor’s claim, whichever is less. The judgment may be entered against:

(a)The first transferee of the asset or the person for whose benefit the transfer was made; or

(b)Any subsequent transferee other than a transferee who took in good faith for value or from any subsequent transferee.

3. If the judgment under subsection 2 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.

4. Notwithstanding voidability of a transfer or an obligation under this chapter, a transferee or obligee who took in good faith is entitled, to the extent of the value given the debtor for the transfer or obligation, to:

(a)A lien on or a right to retain any interest in the asset transferred;

(b)Enforcement of any obligation incurred; or

(c)A reduction in the amount of the liability on the judgment.

5. A transfer is not voidable under paragraph

(b)of subsection 1 of NRS 112.180 or NRS 112.190 if the transfer results from:

(a)Termination of a lease upon default by the debtor when the termination is pursuant to the lease and applicable law; or

(b)Enforcement of a security interest in compliance with NRS 104.9101 to 104.9709 , inclusive.

6. A transfer is not voidable under subsection 2 of NRS 112.190 :

(a)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;

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

(c)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.