§651C-5 - Transfers fraudulent as to present creditors.
[§651C-5] Transfers fraudulent as to present creditors. (a) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor becomes insolvent as a result of the transfer or obligation.
(b) A transfer made by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for other than a present, reasonably equivalent value, the debtor was insolvent at that time, and the insider had reasonable cause to believe that the debtor was insolvent. [L 1985, c 216, pt of §1]
Case Notes
Plaintiffs pled facts with sufficient particularity to support a cause of action for fraudulent conveyance under subsection (a) and §651C-4(a)(1) and (a)(2)(B). 529 F. Supp. 2d 1190.
Where partner was not a "creditor" as defined under §651C-1, other partner was not entitled to relief under this chapter. 92 H. 243, 990 P.2d 713.