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reasonably equivalent to the transfer, as a matter of law the
transfer was fraudulent under TUFTA section 24.006(b).
TUFTA provides that a transfer is fraudulent as to an
insider who is also a creditor. In addition, if the creditor’s
antecedent debt arose before the transfer was made, the debtor
was insolvent at the time, and the insider had reasonable cause
to believe that the debtor was insolvent, then the transfer is
fraudulent as a matter of law. Tex. Bus. & Com. Code Ann. sec.
24.006(b)(Vernon 1987).
It is factually established in this case: That petitioner
was an “insider” under Texas law; that JCC was insolvent at the
time of the transfer; and that the transfer satisfied an
antecedent debt. Respondent contends that petitioner knew of
JCC’s insolvency prior to the transfer so that the transfer was
made in bad faith and represents the kind and type of “insider
preference” that Tex. Bus. & Com. Code Ann. section 24.006(b) was
designed to obviate.
Petitioner counters that section 24.009(f) provides for a
statutory defense or exception to subsection (b). That exception
occurs where a transfer was made in good faith in the “ordinary
course of business or financial affairs” of the transferor/debtor
and the insider. Tex. Bus. & Com. Code Ann. sec. 24.006(f)(2)
(Vernon Supp. 2000).
In this case, although the transfer facially appears to meet
the statutory threshold for an insider preference under section
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