§651C-1 - Definitions.

[§651C-1] Definitions. As used in this
chapter, unless the context otherwise requires:

"Affiliate" means:

(1) A person who directly or indirectly owns,
controls, or holds with power to vote, twenty or more per cent of the
outstanding voting securities of the debtor, other than a person who holds the
securities:

(A) As a fiduciary or agent without sole
discretionary power to vote the securities; or

(B) Solely to secure a debt, if the person has
not in fact exercised the power to vote;

(2) A corporation, twenty or more per cent of whose
outstanding voting securities are directly or indirectly owned, controlled, or
held with power to vote, by the debtor, or by a person who directly or
indirectly owns, controls, or holds with power to vote, twenty or more per cent
of the outstanding voting securities of the debtor, other than a person who
holds the securities:

(A) As a fiduciary or agent without sole
discretionary power to vote the securities; or

(B) Solely to secure a debt, if the person has
not in fact exercised the power to vote;

(3) A person whose business is operated by the debtor
under a lease or other agreement, or a person substantially all of whose assets
are controlled by the debtor; or

(4) A person who operates the debtor's business under
a lease or other agreement or controls substantially all of the debtor's
assets.

"Asset" means property of a debtor
but does not include:

(1) Property to the extent that it is encumbered by a
valid lien;

(2) Property to the extent that it is generally
exempt under nonbankruptcy law; or

(3) An interest in property held in tenancy by the
entireties to the extent that it is not subject to process by a creditor
holding a claim against only one tenant.

"Claim" means a right to payment,
whether or not the right is reduced to judgment, liquidated, unliquidated,
fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable,
secured, or unsecured.

"Creditor" means a person who has a
claim against a debtor.

"Debt" means liability on a claim.

"Debtor" means a person against whom
a creditor has a claim.

An "insider" includes:

(1) If the debtor is an individual:

(A) A relative of the debtor or of a general
partner of the debtor;

(B) A partnership in which the debtor is a
general partner;

(D) A corporation of which the debtor is a
director, officer, or person in control;

(2) If the debtor is a corporation:

(A) A director of the debtor;

(B) An officer of the debtor;

(D) A partnership in which the debtor is a
general partner;

(E) A general partner in a partnership
described in subparagraph (D); or

(F) A relative of a general partner, director,
officer, or person in control of the debtor;

(3) If the debtor is a partnership:

(A) A general partner of the debtor;

(B) A relative of a general partner in, of a
general partner of, or of a person in control of the debtor;

(D) A general partner in a partnership
described in subparagraph (C); or

(E) A person in control of the debtor;

(4) An affiliate, or an insider of an affiliate as if
the affiliate were the debtor; and

(5) A managing agent of the debtor.

"Lien" means a charge against or an
interest in property to secure payment of a debt or performance of an
obligation, including a security interest created by agreement, a judicial lien
obtained by legal or equitable process or proceedings, a common-law lien, or a
statutory lien.

"Person" means an individual,
partnership, corporation, association, organization, government or governmental
subdivision or agency, business trust, estate, trust, or any other legal or
commercial entity.

"Property" means anything that may be
the subject of ownership.

"Relative" means an individual
related within the third degree as determined by the common law, a spouse, or
an individual related to a spouse within the third degree as so determined, and
includes an individual in an adoptive relationship within the third degree.

"Transfer" means 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, and includes a payment of
money, a release, a lease, and the creation of a lien or encumbrance.

"Valid lien" means a lien that is
effective against the holder of a judicial lien subsequently obtained by legal
or equitable process or proceedings. [L 1985, c 216, pt of §1]