Sec. 52-552e. Transfers fraudulent as to present creditors.
Sec. 52-552e. Transfers fraudulent as to present creditors. (a) A transfer made
or obligation incurred by a debtor is fraudulent as to a creditor, if the creditor's claim
arose before the transfer was made or the obligation was incurred and if the debtor made
the transfer or incurred the obligation: (1) With actual intent to hinder, delay or defraud
any creditor of the debtor; or (2) without receiving a reasonably equivalent value in
exchange for the transfer or obligation, and the debtor (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, or (B) intended to
incur, or believed or reasonably should have believed that he would incur, debts beyond
his ability to pay as they became due.
(b) In determining actual intent under subdivision (1) of subsection (a) of this section, consideration may be given, among other factors, to whether: (1) The transfer or
obligation was to an insider, (2) the debtor retained possession or control of the property
transferred after the transfer, (3) the transfer or obligation was disclosed or concealed,
(4) before the transfer was made or obligation was incurred, the debtor had been sued
or threatened with suit, (5) the transfer was of substantially all the debtor's assets, (6)
the debtor absconded, (7) the debtor removed or concealed assets, (8) 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) the debtor was insolvent or
became insolvent shortly after the transfer was made or the obligation was incurred,
(10) the transfer occurred shortly before or shortly after a substantial debt was incurred,
and (11) the debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor.
(P.A. 91-297, S. 5.)
Determination of question of fraudulent intent is clearly an issue of fact which must often be inferred from surrounding
circumstances. 54 CA 481.
Subsec. (a):
Subdiv. (1) cited. 46 CA 199. Subdiv. (2) cited. Id.
Subsec. (b):
Cited. 46 CA 399.