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conveyance of the Alhambra property occurred in California, we
examine California law. See Adams v. Commissioner, 70 T.C. 373,
389 (1978), affd. in part without published opinion and dismissed
in part 688 F.2d 815 (2d Cir. 1982).
In 1986, California adopted the Uniform Fraudulent Transfer
Act (UFTA), which applies to transfers made or obligations incurred
on or after January 1, 1987. Cal. Civ. Code sec. 3439.12 (West
1997). The transfer at issue in this case--the conveyance of the
Alhambra property from Jaussaud Enterprises to petitioner--occurred
in July 1990. Thus, the UFTA applies herein.
California's UFTA contains two provisions for determining
whether a fraudulent conveyance occurred. The provision we believe
applicable in this case is section 3439.046 of the California Civil
Code (1997), which provides:
A transfer made or obligation incurred by a debtor
is fraudulent as to a creditor, whether the creditor's
claim arose before or after the transfer was made or the
obligation incurred, if the debtor made the transfer or
incurred the obligation as follows:
(a) With actual intent to hinder, delay, or defraud
any creditor of the debtor.
6 The other potentially applicable provision is Cal. Civ.
Code sec. 3439.05 (West 1997), which relates to constructive
fraud that occurs after a creditor's claim arises. Arguably,
that is not the case here because the transfer from Jaussaud
Enterprises to petitioner created respondent's claim for tax, and
that transfer occurred before respondent's claim arose. However,
we need not decide this issue because either Cal. Civ. Code sec.
3439.04(b)(1) or (2) (West 1997) provides other bases for finding
constructive fraud.
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