(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 Tennessee Code 66-3-306

  • 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 Tennessee Code 66-3-302
  • Creditor: means a person who has a claim. See Tennessee Code 66-3-302
  • Debt: means liability on a claim. See Tennessee Code 66-3-302
  • Debtor: means a person who is liable on a claim. See Tennessee Code 66-3-302
  • Insider: includes :
    (A) If the debtor is an individual:
    (i) A relative of the debtor or of a general partner of the debtor. See Tennessee Code 66-3-302
  • 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 Tennessee Code 66-3-302
(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.
  Previous section
Next section  
 Part 3 Contents