West Virginia Code 40-1A-6 – When transfer is made or obligation is incurred
For the purposes of this article:
Terms Used In West Virginia Code 40-1A-6
- Asset: means property of a debtor, but the term does not include:
(1) Property to the extent it is encumbered by a valid lien. See West Virginia Code 40-1A-1
- Contract: A legal written agreement that becomes binding when signed.
- Creditor: means a person who has a claim. See West Virginia Code 40-1A-1
- Debtor: means a person who is liable on a claim. See West Virginia Code 40-1A-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 West Virginia Code 40-1A-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 West Virginia Code 40-1A-1
(a) A transfer is made:
(1) 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
(2) 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 article that is superior to the interest of the transferee;
(b) If applicable law permits the transfer to be perfected as provided in subdivision (a) of this subsection and the transfer is not so perfected before the commencement of an action for relief under this article, the transfer is considered made immediately before the commencement of this action;
(c) If applicable law does not permit the transfer to be perfected as provided in subdivision (a) of this subsection, the transfer is made when it becomes effective between the debtor and the transferee; and
(d) A transfer is not made until the debtor has acquired rights in the asset transferred and an obligation is incurred.
(e) If the obligation incurred is oral, a transfer is made when the obligation becomes effective. If the obligation incurred is evidenced by a writing, the obligation becomes effective when the writing is delivered to or for the benefit of the obligee.