ILCS » Chapter 740 · Act 160
Illinois Compiled Statutes

740 ILCS 160/9 (2026)

(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

✓ current as of May 2026
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(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.)

    
Notes of Decisions
Cited in 31 cases (3 in the last 5 years), 1995–2025 · leading case: Steinberg v. Schneider (In Re Schneider), 417 B.R. 907 (Bankr. N.D. Ill. 2009).
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Steinberg v. Schneider (In Re Schneider), 417 B.R. 907 (Bankr. N.D. Ill. 2009). · cites it 4× “740 ILCS 160/9(a); Zeigler, 320 B.R. at 374 , In re Hennings Feed and Crop Care, Inc.”
Baldi v. Lynch (In Re McCook Metals, L.L.C.), 319 B.R. 570 (Bankr. N.D. Ill. 2005). “740 ILCS 160/9 (West 1990). Either term would be applicable to a natural person such as Lynch, since the Code defines “entity” as including "person.”
Grochocinski v. Zeigler (In Re Zeigler), 320 B.R. 362 (Bankr. N.D. Ill. 2005). “740 ILCS 160/9(a) (emphasis supplied). Courts have recognized that a defense under § 9 of the UFTA consists of two elements: good faith and reasonably equivalent value.”
Fid. Nat'l Title Ins. Co. of New York v. Howard Sav. Bank, 436 F.3d 836 (7th Cir. 2006). “Fidelity argues that the transfers to the banks of the money used to buy the certificates of deposit were fraudulent because no consideration was given to the equitable owners of the money transferred, that is, to the owners of the escrow money and to Fidelity itself as their…”
Scholes v. Lehmann, 56 F.3d 750 (7th Cir. 1995). “We add that the ex-wife's claims against Douglas, to the extent supported by consideration, would not be extinguished by a finding of actual fraud (and her complicity); they would simply be thrown into the pool with the claims of the other creditors of the corporations, the…”
1550 MP Road LLC v. Teamsters Local Union No. 700, 2017 IL App (1st) 153300 (Ill. App. Ct. 2017). · cites it 2× “" 740 ILCS 160/9(b) (West 2014). The creditor may obtain a judgment 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…”
Aps Sports Collectibles, Inc. v. Sports Time, Inc., 299 F.3d 624 (7th Cir. 2002). “" 740 ILCS 160/9(b)-(c) (emphasis added). The trial court calculated both of these amounts and determined that the amount necessary to satisfy APS's claim was the lesser.”
Kennedy v. Four Boys Labor Servs., Inc., 664 N.E.2d 1088 (Ill. App. Ct. 1996). “740 ILCS 160/9 (West 1994). In the case at bar, Miriam transferred the assets of Four Boys to the Kozin brothers who, in turn, subsequently transferred those assets to SMRJ.”
Wachovia Sec., LLC v. Jahelka, 586 F. Supp. 2d 972 (N.D. Ill. 2008). “(a) In an action for relief against a transfer or obligation under this Act, a creditor, subject to the limitations in Section 9 [740 ILCS 160/9], may obtain: (1) avoidance of the transfer or obligation to the extent necessary to satisfy the creditor’s claim; (2) an attachment…”
Peterson v. Atradius Trade Credit Ins. (In Re Lancelot Investors Fund, LP), 451 B.R. 833 (Bankr. N.D. Ill. 2011). “Section 548(c) of the Bankruptcy Code (as does the Illinois UFTA at 740 ILCS 160/9) provides an exception to the voiding of fraudulent transfers: a “transferee or obligee of such a transfer or obligation that takes for value and in good faith has a lien on or may retain any…”
Cordes & Co., LLC v. Mitchell Companies, LLC, 605 F. Supp. 2d 1015 (N.D. Ill. 2009). “See 740 ILCS 160/9(b) (“[Jjudgment may be entered against the first transferee of the asset or the person for whose benefit the transfer was made.”
APS Sports Collectibles, Inc. v. Sports Time, Inc., 299 F.3d 624 (7th Cir. 2002). “” 740 ILCS 160/9(b)-(c) (emphasis added). The trial court calculated both of these amounts and determined that the amount necessary to satisfy APS’s claim was the lesser.”
Show all 31 citing cases →
— 740 ILCS 160/9(a) — 11 cases
Grochocinski v. Zeigler (In Re Zeigler), 320 B.R. 362 (Bankr. N.D. Ill. 2005). “740 ILCS 160/9(a) (emphasis supplied). Courts have recognized that a defense under § 9 of the UFTA consists of two elements: good faith and reasonably equivalent value.”
Fid. Nat'l Title Ins. Co. of New York v. Howard Sav. Bank, 436 F.3d 836 (7th Cir. 2006). “Fidelity argues that the transfers to the banks of the money used to buy the certificates of deposit were fraudulent because no consideration was given to the equitable owners of the money transferred, that is, to the owners of the escrow money and to Fidelity itself as their…”
Steinberg v. Schneider (In Re Schneider), 417 B.R. 907 (Bankr. N.D. Ill. 2009). “740 ILCS 160/9(a); Zeigler, 320 B.R. at 374 , In re Hennings Feed and Crop Care, Inc.”
For Your Ease Only, Inc. v. Calgon Carbon Corp., 560 F.3d 717 (7th Cir. 2009).
Brandt v. KLC Fin., Inc. (In re Equip. Acquisition Resources, Inc.), 481 B.R. 422 (Bankr. N.D. Ill. 2012).
— 740 ILCS 160/9(b) — 11 cases
Aps Sports Collectibles, Inc. v. Sports Time, Inc., 299 F.3d 624 (7th Cir. 2002). “" 740 ILCS 160/9(b)-(c) (emphasis added). The trial court calculated both of these amounts and determined that the amount necessary to satisfy APS's claim was the lesser.”
Steinberg v. Schneider (In Re Schneider), 417 B.R. 907 (Bankr. N.D. Ill. 2009). “740 ILCS 160/9(a); Zeigler, 320 B.R. at 374 , In re Hennings Feed and Crop Care, Inc.”
Cordes & Co., LLC v. Mitchell Companies, LLC, 605 F. Supp. 2d 1015 (N.D. Ill. 2009). “See 740 ILCS 160/9(b) (“[Jjudgment may be entered against the first transferee of the asset or the person for whose benefit the transfer was made.”
APS Sports Collectibles, Inc. v. Sports Time, Inc., 299 F.3d 624 (7th Cir. 2002). “” 740 ILCS 160/9(b)-(c) (emphasis added). The trial court calculated both of these amounts and determined that the amount necessary to satisfy APS’s claim was the lesser.”
1550 MP Road LLC v. Teamsters Local Union No. 700, 2017 IL App (1st) 153300 (Ill. App. Ct. 2017). “" 740 ILCS 160/9(b) (West 2014). The creditor may obtain a judgment 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…”
— 740 ILCS 160/9(b)(1) — 5 cases
1550 MP Road LLC v. Teamsters Local Union No. 700, 2017 IL App (1st) 153300 (Ill. App. Ct. 2017). “" 740 ILCS 160/9(b) (West 2014). The creditor may obtain a judgment 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…”
1550 MP Road LLC v. Teamsters Local Union No. 700, 2017 IL App (1st) 153300 (Ill. App. Ct. 2018).
U.S. Bank Nat'l Ass'n v. Londrigan, Potter & Randle, P.C. (C.D. Ill. 2021).
1550 MP Road LLC v. Teamsters Local Union No. 700, 2017 IL App (1st) 153300 (Ill. App. Ct. 2017).
Macdonald, II v. Est. of, 469 F.3d 1079 (7th Cir. 2006).
— 740 ILCS 160/9(b)(2) — 1 case
White v. Funeral Fin. Sys., Ltd, 2022 IL App (1st) 201385-U (Ill. App. Ct. 2022).
— 740 ILCS 160/9(b)(l) — 2 cases
Paloian v. Geneva Seal, Inc. (In re Canopy Fin., Inc.), 477 B.R. 696 (N.D. Ill. 2012).
MacDonald Ex Rel. Walter Middleton & Co. Ret. Plan & Walter Middleton & Co. Frozen Ret. Plan v. Est. of Gayton, 469 F.3d 1079 (7th Cir. 2006).
— 740 ILCS 160/9(c) — 1 case
Steinberg v. Schneider (In Re Schneider), 417 B.R. 907 (Bankr. N.D. Ill. 2009). “740 ILCS 160/9(a); Zeigler, 320 B.R. at 374 , In re Hennings Feed and Crop Care, Inc.”
— 740 ILCS 160/9(d) — 3 cases
Scholes v. Lehmann, 56 F.3d 750 (7th Cir. 1995). “We add that the ex-wife's claims against Douglas, to the extent supported by consideration, would not be extinguished by a finding of actual fraud (and her complicity); they would simply be thrown into the pool with the claims of the other creditors of the corporations, the…”
Steinberg v. Schneider (In Re Schneider), 417 B.R. 907 (Bankr. N.D. Ill. 2009). “740 ILCS 160/9(a); Zeigler, 320 B.R. at 374 , In re Hennings Feed and Crop Care, Inc.”
Scholes v. Lehmann, 56 F.3d 750 (7th Cir. 1995).
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