- 7 -
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). All the transfers that respondent alleges
are fraudulent took place after 1987. Accordingly, the UFTA
applies.
California Civil Code section 3439.04 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.
(b) Without receiving a reasonably equivalent
value in exchange for the transfer or obligation, and
the debtor:
(1) Was engaged or was about to engage
in a business or a transaction for which the
remaining assets of the debtor were
unreasonably small in relation to the
business or transaction; or
(2) Intended to incur, or believed or
reasonably should have believed that he or
she would incur, debts beyond his or her
ability to pay as they became due.
California Civil Code section 3439.05 provides:
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 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
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011