State Codes and Statutes

Statutes > Utah > Title-25 > Chapter-06 > 25-6-5

25-6-5. Fraudulent transfer -- Claim arising before or after transfer.
(1) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor,whether the creditor's claim arose before or after the transfer was made or the obligation wasincurred, if the debtor made the transfer or incurred the obligation:
(a) with actual intent to hinder, delay, or defraud any creditor of the debtor; or
(b) without receiving a reasonably equivalent value in exchange for the transfer orobligation; and the debtor:
(i) was engaged or was about to engage in a business or a transaction for which theremaining assets of the debtor were unreasonably small in relation to the business or transaction;or
(ii) intended to incur, or believed or reasonably should have believed that he would incur,debts beyond his ability to pay as they became due.
(2) To determine "actual intent" under Subsection (1)(a), consideration may be given,among other factors, to whether:
(a) the transfer or obligation was to an insider;
(b) the debtor retained possession or control of the property transferred after the transfer;
(c) the transfer or obligation was disclosed or concealed;
(d) before the transfer was made or obligation was incurred, the debtor had been sued orthreatened with suit;
(e) the transfer was of substantially all the debtor's assets;
(f) the debtor absconded;
(g) the debtor removed or concealed assets;
(h) the value of the consideration received by the debtor was reasonably equivalent to thevalue of the asset transferred or the amount of the obligation incurred;
(i) the debtor was insolvent or became insolvent shortly after the transfer was made orthe obligation was incurred;
(j) the transfer occurred shortly before or shortly after a substantial debt was incurred;and
(k) the debtor transferred the essential assets of the business to a lienor who transferredthe assets to an insider of the debtor.

Enacted by Chapter 59, 1988 General Session