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BANKRUPTCY · UNITED STATES CODE
Creditors, the Debtor and the Estate
Subchapter III. The Estate
USC § 550. Liability of transferee of avoided transfer
(a) Except as otherwise provided in this section, to the extent that a
transfer is avoided under section
of this title, the trustee may recover, for the benefit of the estate, the
property transferred, or, if the court so orders, the value of such property, from--
(1) the initial transferee of such transfer or the entity for whose
benefit such transfer was made; or
(2) any immediate or mediate transferee of such initial transferee.
(b) The trustee may not recover under section (a)(2) of this section from--
(1) a transferee that takes for value, including satisfaction or securing
of a present or antecedent debt, in good faith, and without knowledge of the
voidability of the transfer avoided; or
(2) any immediate or mediate good faith transferee of such transferee.
(c) If a transfer made between 90 days and one year before the filing of
(1) is avoided under section
547(b) of this title; and
(2) was made for the benefit of a creditor that at the time of such
transfer was an insider;
the trustee may not recover under subsection
(a) from a transferee that is not an insider.
(d) The trustee is entitled to only a single satisfaction under subsection
(a) of this section.
(1) A good faith transferee from whom the trustee may recover under subsection
(a) of this section has a lien on the property recovered to secure the
(A) the cost, to such transferee, of any improvement made after the
transfer, less the amount of any profit realized by or accruing to such
transferee from such property; and
(B) any increase in the value of such property as a result of such
improvement, of the property transferred.
(2) In this subsection, "improvement" includes--
(A) physical additions or changes to the property transferred;
(B) repairs to such property;
(C) payment of any tax on such property;
(D) payment of any debt secured by a lien on such property that is
superior or equal to the rights of the trustee; and
(E) preservation of such property.
(f) An action or proceeding under this section may not be commenced after
the earlier of--
(1) one year after the avoidance of the transfer on account of which
recovery under this section is sought; or
(2) the time the case is closed or dismissed.