Tennessee Code Annotated
Tenn. Code Ann. § 66-3-309 (2026)
Defenses, liability, and protection of transferee
✓ current as of May 2026
- (a) A transfer or obligation is not voidable under § 66-3-305(a)(1) 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 § 66-3-308(a)(1), 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:
- (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 or obligee who took for value or from any subsequent transferee or obligee.
- (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 part, 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 § 66-3-305(a)(2) or § 66-3-306 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 title 47, chapter 9 of the Uniform Commercial Code.
- (f) A transfer is not voidable under § 66-3-306(b):
- (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.
Acts 2003, ch. 42, § 1.
Notes of Decisions
Cited in 14
cases (6 in the last 5 years), 2007–2024 · leading case: Billy F. Hawk, Jr., GST Non-Exempt Marital Trust v. Comm'r of Internal Revenue, 924 F.3d 821 (6th Cir. 2019).
Billy F. Hawk, Jr., GST Non-Exempt Marital Trust v. Comm'r of Internal Revenue, 924 F.3d 821 (6th Cir. 2019). “See Tenn. Code Ann. § 66-3-309 (d). Some history shows why.”
Farinash v. Silvey (In Re Silvey), 378 B.R. 186 (Bankr. E.D. Tenn. 2007). “§ 550 (a), (e); compare Tenn.Code Ann. § 66-3-309(c), (d). The court will enter an order.”
Edgefield Holdings, LLC v. The Blumberg 2 Trust (E.D. Tenn. 2023). “” See Tenn. Code Ann. §66-3-309 (a). Indeed, the facts are opposite.”
Perkins v. Brunger, 303 S.W.3d 688 (Tenn. Ct. App. 2009). “That section reads as follows: (a) In an action for relief against a transfer or obligation under this part, a creditor, subject to the limitations in § 66-3-309, may obtain: (1) Avoidance of the transfer or obligation to the extent necessary to satisfy the creditor’s claim; (2)…”
Lindsey v. Collier (M.D. Tenn. 2021). “” Tenn. Code Ann. § 66-3-309 (b). That section further provides that the Court may enter judgment against “[t]he first transferee of the asset or the person whose benefit the transfer was made” or against “[a]ny subsequent transferee other than a good-faith transferee or obligee…”
Hawk v. Comm'r, 2017 T.C. Memo. 217 (Tax Ct. 2017). “Under TUFTA a creditor can recover judgment against a transferee for the value of the property transferred or, if less, the amount of the creditor's claim.”
George A. Bavelis v. Ted Doukas (Tenn. Ct. App. 2018). “Moreover, section 66-3-309, entitled “Defenses, liability, and protection of transferee,” provides that a creditor may recover a judgment for the value of the asset transferred and that the judgment may be entered against “[t]he first transferee of the asset or the person for…”
State of Tennessee Ex Rel. Herbert H. Slatery, III, Attorney Gen. & Reporter v. HRC Med. Centers, Inc., 603 S.W.3d 1 (Tenn. Ct. App. 2019). “with the requirement of the HCLA, Tennessee Code Annotated 29-26- 7 On October 28, 2016, the State moved for summary judgment against Dixie and Bonnie Hale, asserting that Dixie Hale should be held individually liable for HRC Medical’s violations of the TCPA, and that Bonnie…”
JRS Partners, GP v. Warren (M.D. Tenn. 2021). “'* ELI RICHARDSON UNITED STATES DISTRICT JUDGE '! Tenn. Code Ann. § 66-3-309 provides that to the extent a transfer is voidable in an action by a creditor under Section 66-3-308, the creditor may recover judgment for the value of the asset transferred and judgment may be entered…”
Adrian Lynn McWilliams v. Brenda Chaney Vaughn (Tenn. Ct. App. 2019). “This section provides that “In an action for relief against a transfer or obligation under this part, a creditor, subject to the limitations in § 66-3-309, may obtain . . . avoidance of the transfer or obligation to the extent necessary to satisfy the creditor’s claim.”
N. Am. Specialty Ins. v. Heritage Glass, LLC (6th Cir. 2020). “Tenn. Code Ann. § 66-3-309 (b). Cording was an LLC member, not a creditor, of Heritage Glass.”
Fam. Trust Servs. LLC v. Green Wise Homes LLC (Tenn. Ct. App. 2022). “Moreover, Plaintiffs propounded that pursuant to Tennessee Code Annotated § 66-3-309, the court could issue a judgment against each defendant for the value of the asset transferred or the amount necessary to satisfy Plaintiffs’ claims, whichever is less.”
Tenn. Code Ann. § 66-3-309(a): 1 case
Edgefield Holdings, LLC v. The Blumberg 2 Trust (E.D. Tenn. 2023). “” See Tenn. Code Ann. §66-3-309 (a). Indeed, the facts are opposite.”
Tenn. Code Ann. § 66-3-309(b): 2 cases
Edgefield Holdings, LLC v. The Blumberg 2 Trust (E.D. Tenn. 2023). “” See Tenn. Code Ann. §66-3-309 (a). Indeed, the facts are opposite.”
Lindsey v. Collier (M.D. Tenn. 2021). “” Tenn. Code Ann. § 66-3-309 (b). That section further provides that the Court may enter judgment against “[t]he first transferee of the asset or the person whose benefit the transfer was made” or against “[a]ny subsequent transferee other than a good-faith transferee or obligee…”
Tenn. Code Ann. § 66-3-309(b)(1): 2 cases
Edgefield Holdings, LLC v. The Blumberg 2 Trust (E.D. Tenn. 2023). “” See Tenn. Code Ann. §66-3-309 (a). Indeed, the facts are opposite.”
George A. Bavelis v. Ted Doukas (Tenn. Ct. App. 2018). “Moreover, section 66-3-309, entitled “Defenses, liability, and protection of transferee,” provides that a creditor may recover a judgment for the value of the asset transferred and that the judgment may be entered against “[t]he first transferee of the asset or the person for…”
Tenn. Code Ann. § 66-3-309(c): 2 cases
Farinash v. Silvey (In Re Silvey), 378 B.R. 186 (Bankr. E.D. Tenn. 2007). “§ 550 (a), (e); compare Tenn.Code Ann. § 66-3-309(c), (d). The court will enter an order.”
Edgefield Holdings, LLC v. The Blumberg 2 Trust (E.D. Tenn. 2023). “” See Tenn. Code Ann. §66-3-309 (a). Indeed, the facts are opposite.”
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