---
kind: "section"
citation: "28 U.S.C. § 3307"
title: "28"
title_heading: "Judiciary and Judicial Procedure"
number: "3307"
heading: "Defenses, liability, and protection of trans­feree"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/28/3307"
units:
  - "Part VI — Particular Proceedings"
  - "Chapter 176 — Federal Debt Collection Procedure"
  - "Subchapter D — Fraudulent Transfers Involving Debts"
---

# §3307. Defenses, liability, and protection of trans­feree

- (a) **Good Faith Transfer.—** A transfer or obligation is not voidable under [section 3304(b)](/usc/28/3304.md?p=b) with respect to a [person](/usc/28/3002.md?p=10) who took in good faith and for a reasonably equivalent value or against any transferee or obligee subsequent to such [person](/usc/28/3002.md?p=10).
- (b) **Limitation.—** Except as provided in [subsection (d)](#d), to the extent a transfer is voidable in an action or proceeding by the [United States](/usc/28/3002.md?p=15) under [section 3306(a)(1)](/usc/28/3306.md?p=a-1), the [United States](/usc/28/3002.md?p=15) may recover [judgment](/usc/28/3002.md?p=8) for the value of the [asset](/usc/28/3301.md?p=2) transferred, but not to exceed the [judgment](/usc/28/3002.md?p=8) on a [debt](/usc/28/3002.md?p=3). The [judgment](/usc/28/3002.md?p=8) may be entered against—
  - (1) the first transferee of the [asset](/usc/28/3301.md?p=2) or the [person](/usc/28/3002.md?p=10) for whose benefit the transfer was made; or
  - (2) any subsequent transferee, other than a good faith transferee who took for value or any subsequent transferee of such good-faith transferee.
- (c) **Value of Asset.—** For purposes of [subsection (b)](#b), the value of the [asset](/usc/28/3301.md?p=2) is the value of the [asset](/usc/28/3301.md?p=2) at the time of the transfer, subject to adjustment as the equities may require.
- (d) **Rights of Good Faith Transferees and Obligees.—** Notwithstanding voidability of a transfer or an obligation under this subchapter, a good-faith transferee or obligee is entitled, to the extent of the value given the [debtor](/usc/28/3002.md?p=4) for the transfer or obligation, to—
  - (1) a lien on or a right to retain any interest in the [asset](/usc/28/3301.md?p=2) transferred;
  - (2) enforcement of any obligation incurred; or
  - (3) a reduction in the amount of the liability on the [judgment](/usc/28/3002.md?p=8).
- (e) **Exceptions.—** A transfer is not voidable under [section 3304(a)](/usc/28/3304.md?p=a) or [section 3304(b)(2)](/usc/28/3304.md?p=b-2) if the transfer results from—
  - (1) termination of a lease upon default by the [debtor](/usc/28/3002.md?p=4) 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 or its equivalent in effect in the [State](/usc/28/3002.md?p=14) where the [property](/usc/28/3002.md?p=12) is located.
- (f) **Limitation of Voidability.—** A transfer is not voidable under [section 3304(a)(2)](/usc/28/3304.md?p=a-2)—
  - (1) to the extent the [insider](/usc/28/3301.md?p=5) gives new value to or for the benefit of the [debtor](/usc/28/3002.md?p=4) after the transfer is made unless the new value is secured by a valid lien;
  - (2) if made in the ordinary course of business or financial affairs of the [debtor](/usc/28/3002.md?p=4) and the [insider](/usc/28/3301.md?p=5); or
  - (3) if made pursuant to a good-faith effort to rehabilitate the [debtor](/usc/28/3002.md?p=4) and the transfer secured both present value given for that purpose and an antecedent [debt](/usc/28/3002.md?p=3) of the [debtor](/usc/28/3002.md?p=4).

## Source credit

(Added Pub. L. 101–647, title XXXVI, § 3611, Nov. 29, 1990, 104 Stat. 4963.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective 180 days after Nov. 29, 1990, and applicable with respect to certain actions for debts owed the United States pending in court on that effective date, see section 3631 of Pub. L. 101–647, set out as a note under section 3001 of this title.