[§651C-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
becomes 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 other than a present, reasonably equivalent value,
the debtor was insolvent at that time, and the insider had reasonable cause to
believe that the debtor was insolvent. [L 1985, c 216, pt of §1]



 



Case Notes



 



  Plaintiffs pled facts with sufficient particularity to
support a cause of action for fraudulent conveyance under subsection (a) and
§651C-4(a)(1) and (a)(2)(B).  529 F. Supp. 2d 1190.



  Where partner was not a "creditor" as defined under
§651C-1, other partner was not entitled to relief under this chapter.  92 H.
243, 990 P.2d 713.