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55-17-13. Bona fide purchaser defined.

For purposes of §55-17-12, the term, bona fide purchaser, means a purchaser of property for value who has not knowingly been a party to fraud or illegality affecting the interest of the spouses or other parties to the transaction, does not have notice of an adverse claim by a spouse, and has acted in the transaction in good faith.

For purposes of this section, the term, purchaser, means a person who acquires property by sale, lease, discount, negotiation, mortgage, pledge, or lien, or otherwise deals with property in a voluntary transaction other than making a gift.

A purchaser gives value for property if the property is acquired:

(1)In return for a binding commitment to extend credit;

(2)As security for or in total or partial satisfaction of a preexisting claim;

(3)By accepting delivery under a preexisting contract for purchase; or

(4)In return for other consideration sufficient to support a contract.

Source: SL 2016, ch 231, §41.