25-6-203. Transfer or obligation voidable — Present creditor — Burden of proof.
(1)
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:
Terms Used In Utah Code 25-6-203
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 Utah Code 25-6-102
Debtor: means a person that is liable on a claim. See Utah Code 25-6-102
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 :
(a)
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 Subsection (8)(a)(ii);
(iv)
a corporation of which the debtor is a director, officer, or person in control; or
(v)
a limited liability company of which the debtor is a member or manager;
(b)
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 Subsection (8)(b)(iv);
(vi)
a limited liability company of which the debtor is a member or manager; or
(vii)
a relative of a general partner, director, officer, or person in control of the debtor;
(c)
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 Subsection (8)(c)(iii);
(v)
a limited liability company of which the debtor is a member or manager; or
(vi)
a person in control of the debtor;
(d)
if the debtor is a limited liability company:
(i)
a member or manager of the debtor;
(ii)
another limited liability company in which the debtor is a member or manager;
(iii)
a partnership in which the debtor is a general partner;
(iv)
a general partner in a partnership described in Subsection (8)(d)(iii);
(v)
a person in control of the debtor; or
(vi)
a relative of a general partner, member, manager, or person in control of the debtor;
(e)
an affiliate, or an insider of an affiliate as if the affiliate were the debtor; and
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, or voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, and creation of a lien or other encumbrance. See Utah Code 25-6-102
(a)
the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation; and
(b)
the debtor was insolvent at the time or became insolvent as a result of the transfer or obligation.
(2)
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 the time, and the insider had reasonable cause to believe that the debtor was insolvent.
(3)
Subject to Subsection 25-6-103(2), a creditor making a claim for relief under Subsection (1) or (2) has the burden of proving the elements of the claim for relief by a preponderance of the evidence.
Renumbered and Amended by Chapter 204, 2017 General Session
