§ 5108. Defenses, liability and protection of transferee or obligee.
(a) Certain transfers or obligations not voidable.--A transfer or obligation is not voidable under section 5104(a)(1) (relating to transfer
or obligation voidable as to present or future creditor) against a person that took
in good faith and for a reasonably equivalent value given the debtor or against any
subsequent transferee or obligee.
(b) Judgment for certain voidable transfers.--To the extent a transfer is avoidable in an action by a creditor under section 5107(a)(1)
(relating to remedies of creditor), the following rules apply:
(1) Except as otherwise provided in this section, the creditor may recover judgment 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:
(i) the first transferee of the asset or the person for whose benefit the transfer was
made; or
(ii) an immediate or mediate transferee of the first transferee, other than:
(A) a good faith transferee that took for value; or
(B) an immediate or mediate good faith transferee of a person described in clause (A).
(2) Recovery under section 5107(a)(1) or (b) of or from the asset transferred or its proceeds,
by levy or otherwise, is available only against a person described in paragraph (1).
(c) Measure of recovery.--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) Rights of good faith transferee or obligee.--Notwithstanding voidability of a transfer or an obligation under this chapter, 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 an interest in the asset transferred;
(2) enforcement of an obligation incurred; or
(3) a reduction in the amount of the liability on the judgment.
(e) Certain transfers not voidable.--A transfer is not voidable under section 5104(a)(2) or 5105 (relating to transfer
or obligation voidable as to present creditor) 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 13 Pa.C.S. Div. 9 (relating
to secured transactions), other than an acceptance of collateral in full or partial
satisfaction of the obligations it secures under 13 Pa.C.S. § 9620 (relating to acceptance
of collateral in full or partial satisfaction of obligation; compulsory disposition
of collateral).
The references to 13 Pa.C.S. Div. 9 and 13 Pa.C.S. § 9620 in paragraph (2) shall also
be deemed to refer to the corresponding provisions of the Uniform Commercial Code
as in effect in any other jurisdiction.
(f) Burden of proof.--The following rules determine the burden of proving matters referred to in this section:
(1) A party that seeks to invoke subsection (a), (d) or (e) has the burden of proving
the applicability of that subsection.
(2) Except as otherwise provided in paragraphs (3) and (4), the creditor has the burden
of proving each applicable element of subsection (b) or (c).
(3) The transferee has the burden of proving the applicability to the transferee of subsection
(b)(1)(ii)(A) or (B).
(4) A party that seeks adjustment under subsection (c) has the burden of proving the adjustment.
(g) Standard of proof.--The standard of proof required to establish matters referred to in this section is
preponderance of the evidence.
(June 8, 2001, P.L.123, No.18, eff. July 1, 2001; Dec. 22, 2017, P.L.1249, No.78,
eff. 60 days)
2017 Amendment. See section 7 of Act 78 in the appendix to this title for special provisions relating
to applicability.
Cross References. Section 5108 is referred to in section 5107 of this title.
Notes of Decisions
Xtreme Caged Combat v. Zarros, M., 247 A.3d 42 (Pa. Super. Ct. 2021).
· cites it 3× “12 Pa.C.S. § 5108(b) (in effect July 1, 2001 to February 19, 2018); see also Farhat, 74 A.”
Deborah Klein v. Douglas Weidner, 729 F.3d 280 (3rd Cir. 2013).
· cites it 3× “In turn, 12 Pa. Cons.Stat. Ann. § 5108 (“Defenses, liability and protection of transferee”) includes the following subsection: (b) Judgment for certain voidable transfers.”
United States v. Rocky Mountain Holdings, Inc., 782 F. Supp. 2d 106 (E.D. Pa. 2011).
· cites it 3× “See 12 Pa. Cons.Stat. § 5108 cmt. 2 (“The value of the asset transferred is limited to the value of the levyable interest of the transferor, exclusive of any interest encumbered by a valid lien.”
Feldman v. Chase Home Fin. (In Re Image Masters, Inc.), 421 B.R. 164 (Bankr. E.D. Pa. 2009).
· cites it 2× “§ 548 (c) 22 and 12 Pa.C.S. § 5108(a) *181 & (d). 23 Defendants maintain that these Counts therefore fail to state claims for avoidance of intentionally fraudulent transfers that are plausible on their face.”
Titus v. Shearer, 498 B.R. 508 (W.D. Pa. 2013).
· cites it 2× “Titus was *522 a “transferee” within the meaning of 12 Pa. Cons.Stat. § 5108. These issues of statutory interpretation present questions of law and are reviewed de novo by this court.”
Image Masters, Inc. v. Chase Home Fin., 489 B.R. 375 (E.D. Pa. 2013).
“Under the relevant statutes, a transferee may avoid liability in an action to avoid a transfer based upon actual fraud by demonstrating that it received the transfer for value and in good faith.”
Carroll v. Stettler, 941 F. Supp. 2d 572 (E.D. Pa. 2013).
“12 Pa. Cons. Stat. § 5108 (a); see also 12 Pa.”
Liebersohn v. Campus Crusade for Christ, Inc. (In re C.F. Foods, L.P.), 280 B.R. 103 (Bankr. E.D. Pa. 2002).
“§ 5104 infra, and Comments (1) and (6) to 12 Pa.C.S. § 5108 infra. Except for points specifically addressed, these matters are left to the courts to determine, giving appropriate consideration to, among other things, the policy of construing uniform laws to make uniform the laws…”
In Re Blatstein, 244 B.R. 290 (Bankr. E.D. Pa. 2000).
“We next pass on to determine (1) whether a judgment should be entered against Lori for the income fraudulently received by her in her accounts; (2) whether judgment should be entered, jointly and severally, against the Blatsteins; and (3) whether further equitable remedies are…”
— 12 Pa. Cons. Stat. § 5108(a) — 6 cases
Feldman v. Chase Home Fin. (In Re Image Masters, Inc.), 421 B.R. 164 (Bankr. E.D. Pa. 2009).
“§ 548 (c) 22 and 12 Pa.C.S. § 5108(a) *181 & (d). 23 Defendants maintain that these Counts therefore fail to state claims for avoidance of intentionally fraudulent transfers that are plausible on their face.”
Deborah Klein v. Douglas Weidner, 729 F.3d 280 (3rd Cir. 2013).
“In turn, 12 Pa. Cons.Stat. Ann. § 5108 (“Defenses, liability and protection of transferee”) includes the following subsection: (b) Judgment for certain voidable transfers.”
Image Masters, Inc. v. Chase Home Fin., 489 B.R. 375 (E.D. Pa. 2013).
“Under the relevant statutes, a transferee may avoid liability in an action to avoid a transfer based upon actual fraud by demonstrating that it received the transfer for value and in good faith.”
— 12 Pa. Cons. Stat. § 5108(b) — 7 cases
United States v. Rocky Mountain Holdings, Inc., 782 F. Supp. 2d 106 (E.D. Pa. 2011).
“See 12 Pa. Cons.Stat. § 5108 cmt. 2 (“The value of the asset transferred is limited to the value of the levyable interest of the transferor, exclusive of any interest encumbered by a valid lien.”
In Re Blatstein, 244 B.R. 290 (Bankr. E.D. Pa. 2000).
“We next pass on to determine (1) whether a judgment should be entered against Lori for the income fraudulently received by her in her accounts; (2) whether judgment should be entered, jointly and severally, against the Blatsteins; and (3) whether further equitable remedies are…”
— 12 Pa. Cons. Stat. § 5108(b)(1) — 1 case
— 12 Pa. Cons. Stat. § 5108(b)(2) — 2 cases
— 12 Pa. Cons. Stat. § 5108(c) — 2 cases
Deborah Klein v. Douglas Weidner, 729 F.3d 280 (3rd Cir. 2013).
“In turn, 12 Pa. Cons.Stat. Ann. § 5108 (“Defenses, liability and protection of transferee”) includes the following subsection: (b) Judgment for certain voidable transfers.”
— 12 Pa. Cons. Stat. § 5108(d)(3) — 1 case
— 12 Pa. Cons. Stat. § 5108(e)(2) — 1 case
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