(211) Uniform Fraudulent Conveyance Act
(UFCA) section 4 provides: "Every conveyance made and every obligation incurred by a person who is or will be thereby rendered insolvent is fraudulent as to creditors without regard to his actual intent if the conveyance is made or the obligation is incurred without a fair consideration." UFCA, [section] 4, 7A pt.
1940); Max Radin, Fraudulent Conveyances in California and the Uniform Fraudulent Conveyance Act
, 27 CALIF.
Both the intentional and constructive fraudulent transfer provisions are part of the Uniform Fraudulent Conveyance Act
or the Uniform Fraudulent Transfer Act.
One set of insolvency-based rule changes is the body of doctrine generally known as "fraudulent transfer." Under both Bankruptcy Code section 548 and the Uniform Fraudulent Transfer Act (and the earlier Uniform Fraudulent Conveyance Act
), obligations incurred for less than "reasonably equivalent value" ("fair consideration," under the earlier act) are avoidable if they are incurred while the debtor is insolvent.(5) Avoidance based on the inadequacy of value, as opposed to actual fraudulent intent, is often called "constructive" fraud.
(90.) Some states have adopted uniform statutory provisions, or similar variations, such as the Uniform Fraudulent Conveyance Act
(UFCA) and Uniform Fraudulent Transfer Act ("UFTA"), while others deal with fraudulent conveyances as a matter of common law.
And, although Alaska has not instituted the Uniform Fraudulent Conveyance Act
or the Uniform Fraudulent Transfers Act and has not acknowledged or defined "badges of fraud" by statute, there is significant Alaska case history to encourage creditors to litigate such issues.