§ 274. Transfer or obligation voidable as to present creditor. (a) A transfer made or obligation incurred by a debtor is voidable 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.

Terms Used In N.Y. Debtor and Creditor Law 274

  • claim for relief: 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. See N.Y. Debtor and Creditor Law 270
  • Creditor: means a person that has a claim. See N.Y. Debtor and Creditor Law 270
  • Debt: means liability on a claim. See N.Y. Debtor and Creditor Law 270
  • Debtor: means a person that is liable on a claim. See N.Y. Debtor and Creditor Law 270
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Insider: includes :

    (1) if the debtor is an individual:

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

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

    (iii) a general partner in a partnership described in subparagraph (ii) of this paragraph; or

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

    (2) if the debtor is a corporation:

    (i) a director of the debtor;

    (ii) an officer of the debtor;

    (iii) a person in control of the debtor;

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

    (v) a general partner in a partnership described in subparagraph (iv) of this paragraph; or

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

    (3) if the debtor is a partnership:

    (i) a general partner in the debtor;

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

    (iii) another partnership in which the debtor is a general partner;

    (iv) a general partner in a partnership described in subparagraph (iii) of this paragraph; or

    (v) 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. See N.Y. Debtor and Creditor Law 270
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • 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 payment of money, release, lease, license, and creation of a lien or other encumbrance. See N.Y. Debtor and Creditor Law 270

(b) A transfer made by a debtor is voidable 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.

(c) Subject to subdivision (b) of section two hundred seventy-one of this article, a creditor making a claim for relief under subdivision (a) or (b) of this section has the burden of proving the elements of the claim for relief by a preponderance of the evidence.

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