Transfers fraudulent as to present creditors

1. Law
2. District of Columbia Code
3. Commercial Instruments and Transactions. [Enacted title]
4. Fraudulent Conveyances
5. Transfers fraudulent as to present creditors

(a) 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 was 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 was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation.

(b) A transfer made by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for an antecedent debt, the debtor was insolvent at that time, and the insider had reasonable cause to believe that the debtor was insolvent.

(Feb. 9, 1996, D.C. Law 11-83, § 2, 42 DCR 6773.)

Prior Codifications

1981 Ed., § 28-3105.

Section References

This section is referenced in § 28-3103, § 28-3108, and § 28-3109.

Editor's Notes

Uniform Law: This section is based upon § 5 of the Uniform Fraudulent Transfer Act.

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