25-6-3 - Insolvency.
25-6-3. Insolvency.
(1) A debtor is insolvent if the sum of the debtor's debts is greater than all of the debtor'sassets at a fair valuation.
(2) A debtor who is generally not paying his debts as they become due is presumed to beinsolvent.
(3) A partnership is insolvent under Subsection (1) if the sum of the partnership's debts isgreater than the aggregate, at a fair valuation, of all of the partnership's assets and the sum of theexcess of the value of each general partner's nonpartnership assets over the partner'snonpartnership debts.
(4) Assets under this section do not include property that has been transferred, concealed,or removed with intent to hinder, delay, or defraud creditors or that has been transferred in amanner making the transfer voidable under this chapter.
(5) Debts under this section do not include an obligation to the extent it is secured by avalid lien on property of the debtor not included as an asset.
Enacted by Chapter 59, 1988 General Session