{"data":{"id":"us-ky/krs-378a.080","jurisdiction":"us-ky","citation":"KRS 378A.080","heading":"Defenses, liability, and protection of transferee or obligee.","body":"(1) A transfer or obligation is not voidable under KRS 378A.040(1)(a) against a person\nthat took in good faith and for a reasonably equivalent value given the debtor or\nagainst any subsequent transferee or obligee.\n(2) To the extent a transfer is avoidable in an action by a creditor under KRS\n378A.070(1)(a), the following rules apply:\n(a) Except as otherwise provided in this section, the creditor may recover\njudgment for the value of the asset transferred, as adjusted under subsection\n(3) of this section, or th e amount necessary to satisfy the creditor's claim,\nwhichever is less. The judgment may be entered against:\n1. The first transferee of the asset or the person for whose benefit the\ntransfer was made; or\n2. An immediate or mediate transferee of the first transferee, other than:\na. A good-faith transferee that took for value; or\nb. An immediate or mediate good -faith transferee of a person\ndescribed in subdivision a. of this subparagraph; and\n(b) Recovery pursuant to KRS 378A.070(1)(a) or (b) of or from the as set\ntransferred or its proceeds, by levy or otherwise, is available only against a\nperson described in subsection (2)(a)1. or 2. of this section.\n(3) If the judgment under subsection (2) of this section is based upon the value of the\nasset transferred, the judgment shall be for an amount equal to the value of the asset\nat the time of the transfer, subject to adjustment as the equities may require.\n(4) Notwithstanding voidability of a transfer or an obligation under this chapter, a\ngood-faith transferee or o bligee is entitled, to the extent of the value given the\ndebtor for the transfer or obligation, to:\n(a) A lien on or a right to retain an interest in the asset transferred;\n(b) Enforcement of an obligation incurred; or\n(c) A reduction in the amount of the liability on the judgment.\n(5) A transfer is not voidable under KRS 378A.040(1)(b) or 378A.050 if the transfer\nresults from:\n(a) Termination of a lease upon default by the debtor when the termination is\npursuant to the lease and applicable law; or\n(b) Enforcement of a security interest in compliance with Subtitle 9 of KRS\nChapter 355, other than acceptance of collateral in full or partial satisfaction\nof the obligation it secures.\n(6) A transfer is not voidable under KRS 378A.050(2):\n(a) To the extent the insider gave new value to or for the benefit of the debtor\nafter the transfer was made, except to the extent the new value was secured by\na valid lien;\n(b) If made in the ordinary course of business or financial affairs of the debtor and\nthe insider; or\n(c) If made pursuant to a good -faith effort to rehabilitate the debtor and the\ntransfer secured present value given for that purpose as well as an antecedent\ndebt of the debtor.\n(7) The following rules determine the burden of proving matters referred to in this\nsection:\n(a) A party that seeks to invoke subsection (1), (4), (5), or (6) of this section has\nthe burden of proving the applicability of the subsection invoked;\n(b) Except as otherwise provided in paragraphs (c) and (d)  of this subsection, the\ncreditor has the burden of proving each applicable element of subsections (2)\nor (3) of this section;\n(c) The transferee has the burden of proving the applicability to the transferee of\nsubsection (2)(a)2.a. or b. of this section; and\n(d) A party that seeks adjustment under subsection (3) of this section has the\nburden of proving the adjustment.\n(8) The standard of proof required to establish matters referred to in this section is\npreponderance of the evidence.","path":["KRS Chapter 378A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44728","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:09Z","sha256":"572a19e4b1b1bcf67c943776626105cd8657e8d86d3a76c642abd3456480ffc9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-378a.070","next":"us-ky/krs-378a.090"},"notice":"GroundRules: Original legal text. Not legal advice."}