(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.

Terms Used In Hawaii Revised Statutes 651C-5

  • 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 Hawaii Revised Statutes 651C-1
  • Creditor: means a person who has a claim against a debtor. See Hawaii Revised Statutes 651C-1
  • Debtor: means a person against whom a creditor has a claim. See Hawaii Revised Statutes 651C-1
  • Insider: includes :

    (1) If the debtor is an individual:

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

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

    (C) A general partner in a partnership described in subparagraph (B); or

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

    (2) If the debtor is a corporation:

    (A) A director of the debtor;

    (B) An officer of the debtor;

    (C) A person in control of the debtor;

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

    (E) A general partner in a partnership described in subparagraph (D); or

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

    (3) If the debtor is a partnership:

    (A) A general partner of the debtor;

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

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

    (D) A general partner in a partnership described in subparagraph (C); or

    (E) 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 Hawaii Revised Statutes 651C-1

  • 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 a payment of money, a release, a lease, and the creation of a lien or encumbrance. See Hawaii Revised Statutes 651C-1
(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.

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