[Notice: Statutes and regulations on this site are not regularly updated and should not be relied upon without further verification]
(a) A transfer made or obligation incurred by a debtor is
fraudulent as to a creditor, whether the creditor’s claim arose
before or after the transfer was made or the obligation was incurred,
if the debtor made the transfer or incurred the obligation as
(1) With actual intent to hinder, delay, or defraud any creditor
of the debtor.
(2) Without receiving a reasonably equivalent value in exchange
for the transfer or obligation, and the debtor either:
(A) Was engaged or was about to engage in a business or a
transaction for which the remaining assets of the debtor were
unreasonably small in relation to the business or transaction.
(B) Intended to incur, or believed or reasonably should have
believed that he or she would incur, debts beyond his or her ability
to pay as they became due.
(b) In determining actual intent under paragraph (1) of
subdivision (a), consideration may be given, among other factors, to
any or all of the following:
(1) Whether the transfer or obligation was to an insider.
(2) Whether the debtor retained possession or control of the
property transferred after the transfer.
(3) Whether the transfer or obligation was disclosed or concealed.
(4) Whether before the transfer was made or obligation was
incurred, the debtor had been sued or threatened with suit.
(5) Whether the transfer was of substantially all the debtor’s
(6) Whether the debtor absconded.
(7) Whether the debtor removed or concealed assets.
(8) Whether the value of the consideration received by the debtor
was reasonably equivalent to the value of the asset transferred or
the amount of the obligation incurred.
(9) Whether the debtor was insolvent or became insolvent shortly
after the transfer was made or the obligation was incurred.
(10) Whether the transfer occurred shortly before or shortly after
a substantial debt was incurred.
(11) Whether the debtor transferred the essential assets of the
business to a lienholder who transferred the assets to an insider of
(c) The amendment to this section made during the 2004 portion of
the 2003-04 Regular Session of the Legislature, set forth in
subdivision (b), does not constitute a change in, but is declaratory
of, existing law, and is not intended to affect any judicial
decisions that have interpreted this chapter.
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.