No action under this Article shall be brought nor levy made more than six months after the date on which the transferee took possession of the goods unless the transfer has been concealed. If the transfer has been concealed, actions may be brought or levies made within six months after its discovery.
NOTES: UNIFORM LAWS COMMENT: Prior Uniform Statutory Provision: None.
Purposes:
1. This Article imposes unusual obligations on buyers of property. A short statute of limitations is therefore appropriate.
2. The main sanction for non-compliance with the Article is that the transfer "is ineffective against any creditor of the transferor." Sections 6-104, 6-105. This means, e.g., that a judgment creditor of the transferor may levy execution on the property. See Comment 2 to Section 6-104.
In such a case, which may be expected to be frequent, no "action under this Article" will be necessary. The action will have been brought and prosecuted to judgment on whatever the claim was. The only thing done "under this Article" will be the levy and resulting sale.
The short statute of limitations is therefore made applicable to levies as well as actions. "Levy", which is not a defined term in the Code, should be read broadly as including not only levies of execution proper but also attachment, garnishment, trustee process, receivership, or whatever proceeding, under the state's practice, is used to apply a debtor's property to payment of his debts.
Definitional Cross Reference:
"Action". Section 1-201.
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