Maine Revised Statutes Title 14 Sec. 3575 – Transfers fraudulent as to present and future creditors
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1. Fraudulent transfer. 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:
A. With actual intent to hinder, delay or defraud any creditor of the debtor; or [PL 1985, c. 641, §3 (NEW).]
B. Without receiving a reasonably equivalent value in exchange for the transfer or obligations and the debtor:
(1) 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; or
(2) Intended to incur, or believed or reasonably should have believed that he would incur, debts beyond his ability to pay as the debts became due. [PL 1985, c. 641, §3 (NEW).]
[PL 1985, c. 641, §3 (NEW).]
Terms Used In Maine Revised Statutes Title 14 Sec. 3575
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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.
2. Determination of actual intent. In determining actual intent under subsection 1, paragraph A, consideration may be given, among other factors, to whether:
A. The transfer or obligation was to an insider; [PL 1985, c. 641, §3 (NEW).]
B. The debtor retained possession or control of the property transferred after the transfer; [PL 1985, c. 641, §3 (NEW).]
C. The transfer or obligation was disclosed or concealed; [PL 1985, c. 641, §3 (NEW).]
D. Before the transfer was made or obligation was incurred, the debtor sued or threatened with suit; [PL 1985, c. 641, §3 (NEW).]
E. The transfer was of substantially all the debtor’s assets; [PL 1985, c. 641, §3 (NEW).]
F. The debtor absconded; [PL 1985, c. 641, §3 (NEW).]
G. The debtor removed or concealed assets; [PL 1985, c. 641, §3 (NEW).]
H. 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; [PL 1985, c. 641, §3 (NEW).]
I. The debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred; [PL 1985, c. 641, §3 (NEW).]
J. The transfer occurred shortly before or shortly after a substantial debt was incurred; and [PL 1985, c. 641, §3 (NEW).]
K. The debtor transferred the essential assets of the business to a lienor who had transferred the assets to an insider of the debtor. [PL 1985, c. 641, §3 (NEW).]
[PL 1985, c. 641, §3 (NEW).]
SECTION HISTORY
PL 1985, c. 641, §3 (NEW).