Fraudulent Conveyance


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Fraudulent Conveyance

The transfer of property to another party in order to defraud a creditor. For example, if a person owes the bank for a loan for $15,000, the person may give or sell $15,000 worth of property to a relative, often while still maintaining use of the property, in order to prevent the bank from being repaid. Legally, fraudulent conveyance requires the intention to defraud a creditor.
References in periodicals archive ?
One example of a corporate transaction that has recently been avoided as a fraudulent conveyance is a spinoff.
435) In reversing, the appellate division noted that, under New York's fraudulent conveyance law:
For articles opposing the application of fraudulent conveyance law to LBOs, see Douglas G.
Not only has GEA sought no injunctive relief; it waited two years after discovering the alleged fraudulent conveyance to file suit at all.
At present, third-party remedies against shareholders or affiliates principally arise under the rubrics of piercing the corporate veil and fraudulent conveyance.
240) In In re Blixseth, a Montana bankruptcy court held that while it was defined by statute as core, a fraudulent conveyance claim was a state law claim that did not fall within the public rights exception.
If the loan proceeds are funneled back to the debtor, then there will be no fraudulent conveyance because the debtor has received reasonably equivalent value.
Hy-Drive said it is the plaintiffs' position that CHEC's motion to stay the fraudulent conveyance is without merit since the existing legislation referred to by CHEC is based primarily on the assets alleged to have been fraudulently conveyed by Global Tech.
27) No fraudulent transfer occurs, as a result of a disclaimer, under Florida's fraudulent conveyance statutes.
A fraudulent conveyance occurs "when someone in debt places his or her property out of reach of his or her creditors' process" (1).
According to the Uniform Fraudulent Conveyance Act (UFCA) to which New York adheres, the creation of an obligation deliberately intended to defraud creditors can be "set aside.
Two obvious questions are 1) whether the transaction is such a sham that the grantor's status as owner continues after the sale, along with consequent liability, and 2) whether the conveyance can be set aside under state statute (for example, under a fraudulent conveyance statute) or common law rules.