Title 28 — Judiciary and Judicial ProcedureRelease 119-73

§3303 Value for transfer or obligation

Title 28 › Part PART VI— - PARTICULAR PROCEEDINGS › Chapter CHAPTER 176— - FEDERAL DEBT COLLECTION PROCEDURE › Subchapter SUBCHAPTER D— - FRAUDULENT TRANSFERS INVOLVING DEBTS › § 3303

Last updated Apr 6, 2026|Official source

Summary

Explains when a transfer or obligation has value: property is given or an earlier debt is secured or paid; it excludes an unfulfilled promise to provide support if that promise was not made in the promisor’s normal business. "Reasonably equivalent value" covers regular, noncollusive foreclosures. "Present value" means the exchange is intended and happens at the same time.

Full Legal Text

Title 28, §3303

Judiciary and Judicial Procedure — Source: USLM XML via OLRC

(a)Value is given for a transfer or an obligation if, in exchange for the transfer or obligation, property is transferred or an antecedent debt is secured or satisfied, but value does not include an unperformed promise made otherwise than in the ordinary course of the promisor’s business to furnish support to the debtor or another person.

(b)For the purposes of section 3304 and 3307, a person gives a reasonably equivalent value if the person acquires an interest of the debtor in an asset pursuant to a regularly conducted, noncollusive foreclosure sale or execution of a power of sale for the acquisition or disposition of such interest upon default under a mortgage, deed of trust, or security agreement.

(c)A transfer is made for present value if the exchange between the debtor and the transferee is intended by them to be contemporaneous and is in fact substantially contemporaneous.

Legislative History

Notes & Related Subsidiaries

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.

Reference

Citations & Metadata

Citation

28 U.S.C. § 3303

Title 28 — Judiciary and Judicial Procedure

Last Updated

Apr 6, 2026

Release point: 119-73