Delaware Code Title 6 Sec. 1305 – Transfers fraudulent as to present creditors
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(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 became insolvent as a result of the transfer or obligation.
Terms Used In Delaware Code Title 6 Sec. 1305
- 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. See Delaware Code Title 6 Sec. 1301
- Creditor: means a person who has a claim. See Delaware Code Title 6 Sec. 1301
- Debt: means liability on a claim. See Delaware Code Title 6 Sec. 1301
- Debtor: means a person who is liable on a claim. See Delaware Code Title 6 Sec. 1301
- Insider: includes :
- 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 and creation of a lien or other encumbrance but excludes, without limitation, any disposition of or parting with property or an interest in property described in paragraph (2) of this section. See Delaware Code Title 6 Sec. 1301
(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 an antecedent debt, the debtor was insolvent at that time and the insider had reasonable cause to believe that the debtor was insolvent.