Montana Code 31-2-334. Transfers fraudulent as to present creditors
31-2-334. Transfers fraudulent as to present creditors. (1) 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 Montana Code 31-2-334
- Claim: means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, legal, equitable, secured, or unsecured. See Montana Code 31-2-328
- Creditor: means a person who has a claim. See Montana Code 31-2-328
- Debt: means liability on a claim. See Montana Code 31-2-328
- Debtor: means a person who is liable on a claim. See Montana Code 31-2-328
- 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 (7)(a)(ii); or
(iv)a corporation of which the debtor is a director, officer, or person in control;
(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 (7)(b)(iv); or
(vi)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 (7)(c)(iii); or
(v)a person in control of the debtor;
(d)an affiliate or an insider of an affiliate as if the affiliate were the debtor; and
(e)a managing agent of the debtor. See Montana Code 31-2-328
- 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. See Montana Code 31-2-328
(2)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.