Texas Business & Commerce Code - Section 24.003. Insolvency
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§ 24.003. INSOLVENCY. (a) A debtor is insolvent if the
sum of the debtor's debts is greater than all of the debtor's assets
at a fair valuation.
(b) A debtor who is generally not paying the debtor's debts
as they become due is presumed to be insolvent.
(c) A partnership is insolvent under Subsection (a) of this
section if the sum of the partnership's debts is greater than the
aggregate, at a fair valuation, of all of the partnership's assets
and the sum of the excess of the value of each general partner's
nonpartnership assets over the partner's nonpartnership debts.
(d) Assets under this section do not include property that
has been transferred, concealed, or removed with intent to hinder,
delay, or defraud creditors or that has been transferred in a manner
making the transfer voidable under this chapter.
(e) Debts under this section do not include an obligation to
the extent it is secured by a valid lien on property of the debtor
not included as an asset.
Amended by Acts 1987, 70th Leg., ch. 1004, § 1, eff. Sept. 1,
1987; Acts 1993, 73rd Leg., ch. 570, § 8, eff. Sept. 1, 1993.
Section: 23.24 23.30 23.31 23.32 23.33 24.001 24.002 24.003 24.004 24.005 24.006 24.007 24.008 24.009 24.010
Last modified: August 11, 2007
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