Rhode Island General Laws 6-16-6. When transfer is made or obligation is incurred
For the purposes of this chapter:
(1) A transfer is made:
(i) With respect to an asset that is real property other than a fixture, but including the interest of a seller or purchaser under a contract for the sale of the asset, when the transfer is so far perfected that a good-faith purchaser of the asset from the debtor against whom applicable law permits the transfer to be perfected cannot acquire an interest in the asset that is superior to the interest of the transferee; and
(ii) With respect to an asset that is not real property or that is a fixture, when the transfer is so far perfected that a creditor on a simple contract cannot acquire a judicial lien otherwise than under this chapter that is superior to the interest of the transferee;
(2) If applicable law permits the transfer to be perfected as provided in subsection (1) and the transfer is not so perfected before the commencement of an action for relief under this chapter, the transfer is deemed made immediately before the commencement of the action;
(3) If applicable law does not permit the transfer to be perfected as provided in subsection (1), the transfer is made when it becomes effective between the debtor and the transferee;
(4) A transfer is not made until the debtor has acquired rights in the asset transferred;
(5) An obligation is incurred:
(i) If oral, when it becomes effective between the parties; or
(ii) If evidenced by a record, when the record signed by the obligor is delivered to or for the benefit of the obligee.
History of Section.
P.L. 1986, ch. 438, § 2; P.L. 2014, ch. 528, § 14; P.L. 2018, ch. 141, § 2; P.L. 2018, ch. 236, § 2.
Terms Used In Rhode Island General Laws 6-16-6
- Asset: means property of a debtor, but the term does not include:
(i) Property to the extent it is encumbered by a valid lien;
(ii) Property to the extent it is generally exempt under nonbankruptcy law; or
(iii) An interest in property held in tenancy by the entireties to the extent it is not subject to process by a creditor holding a claim against only one tenant. See Rhode Island General Laws 6-16-1
- Contract: A legal written agreement that becomes binding when signed.
- Creditor: means a person who has a claim. See Rhode Island General Laws 6-16-1
- Debtor: means a person who is liable on a claim. See Rhode Island General Laws 6-16-1
- 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.
- Property: means anything that may be the subject of ownership. See Rhode Island General Laws 6-16-1
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium, and retrievable in perceivable form. See Rhode Island General Laws 6-16-1
- 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 Rhode Island General Laws 6-16-1