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If all four elements of UFTA section 24.006(a) are present,
a creditor of the transferor, such as respondent herein, may
recover from the transferee an amount equivalent to the lesser of
the amount of the assets transferred to the transferee (reduced
by the amount of assets or rights received by the transferor on
the transfer, if any) or the amount of the creditor's claim. See
UFTA sec. 24.009(b), (d).
Hanna PC argues that it was only acting as agent of
Associates PC for the purpose of winding up the affairs of
Associates PC, that the Transfer Document was not a binding
agreement, and that any transfer of assets to Hanna PC did not
constitute a fraudulent transfer under UFTA section 24.006(a).
UFTA section 24.002(12) contains a broad definition of a
transfer.5 Hanna PC and respondent stipulate that on February 2,
1994, Associates PC transferred all of its assets to Hanna PC,
and the record supports that stipulation. Hanna PC's argument
that no transfer occurred is meritless.
4(...continued)
without receiving a reasonably equivalent value in
exchange for the transfer or obligation and the debtor
was insolvent at that time or the debtor became
insolvent as a result of the transfer or obligation.
5 Under UFTA sec. 24.002(12), a transfer is defined as “every
mode, direct or indirect, absolute or conditional, voluntary or
involuntary, of disposing of or parting with an asset or an
interest in an asset”.
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Last modified: May 25, 2011