Fraudulent Transfers and Conveyances

ORS 95.270
Transferee’s defenses, liability and protections


(1)

A transfer or obligation is not voidable under ORS 95.230 (Transfers fraudulent as to present and future creditors) (1)(a) as against a person who took in good faith and for a reasonably equivalent value or any subsequent transferee or obligee.

(2)

Except as otherwise provided in this section, to the extent a transfer is voidable in an action by a creditor under ORS 95.260 (Creditor’s remedies) (1)(a), the creditor may recover judgment for the value of the asset transferred, as adjusted under subsection (3) of this section, or the amount necessary to satisfy the creditor’s claim, whichever is less. The judgment may be entered against:

(a)

The first transferee of the asset or the person for whose benefit the transfer was made; or

(b)

Any subsequent transferee.

(3)

If the judgment under subsection (2) of this section 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.

(4)

A creditor may not recover under subsection (2)(b) of this section from a good-faith transferee or obligee who took for value or from any subsequent transferee or obligee.

(5)

Notwithstanding voidability of a transfer or an obligation under ORS 95.200 (Definitions for ORS 95.200 to 95.310) to 95.310 (Short title), a good-faith transferee or obligee is entitled, to the extent of the value given the debtor for the transfer or obligation, to:

(a)

A lien on or a right to retain any interest in the asset transferred;

(b)

Enforcement of any obligation incurred; or

(c)

A reduction in the amount of the liability on the judgment.

(6)

A transfer is not voidable under ORS 95.240 (Transfers fraudulent as to present creditors) (2):

(a)

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 an otherwise unavoidable lien;

(b)

If made in the ordinary course of business or financial affairs of the debtor and the insider; or

(c)

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.

(7)

A transfer is not voidable under ORS 95.230 (Transfers fraudulent as to present and future creditors) (1)(b) or 95.240 (Transfers fraudulent as to present creditors) if the transfer results from:

(a)

Termination of a lease upon default by the debtor when the termination is pursuant to the terms of the lease and applicable law; or

(b)

Enforcement of a security interest in compliance with ORS chapter 79. [1985 c.664 §8; 2001 c.445 §167]

Notes of Decisions

Action could not be maintained directly against trustee of property rather than against transferee. Cadle Co. II v. Schellman, 126 Or App 372, 868 P2d 773 (1994)

Good faith required of taker is subjective good faith. Cushman v. Wilkinson, 129 Or App 317, 879 P2d 873 (1994)

§§ 95.200 to 95.310

Notes of Decisions

Where plaintiff brought products liability action against corporation and holding company entirely owned by former shareholders of corporation for asbestos related injury, corporate restructuring resulting in formation of holding company was designed for improper purpose of escaping asbestos related liabilities and holding company was successor in liability and responsible for corporations' strict liability torts. Schmoll v. Acands, Inc., 703 F Supp 868 (D. Or. 1988)


Source

Last accessed
Jun. 26, 2021