Source: https://voidabletransactions.com/north-dakota-voidable-transaction-uvta-fraudulent-transfer-ufta.html
Timestamp: 2020-08-11 15:40:56
Document Index: 329343069

Matched Legal Cases: ['§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13']

North Dakota Voidable Transaction UVTA Fraudulent Transfer UFTA
North Dakota Uniform Voidable Transactions Act
North Dakota UVTA a/k/a NDUVTA or NUVTA
NDCC, 13-02.1-01, et seq.
§ 13-02.1-01. Definitions
a. A person that directly or indirectly owns, controls, or holds with power to vote, twenty percent or more of the outstanding voting securities of the debtor, other than a person that holds the securities;
b. A corporation or a limited liability company twenty percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor, or by a person that directly or indirectly owns, controls, or holds with power to vote, twenty percent or more of the outstanding voting securities of the debtor, other than a person that holds the securities:
2. “Asset” means property of a debtor, excluding property to the extent it is encumbered by a valid lien, property to the extent it is generally exempt under nonbankruptcy law, or an interest in property held in tenancy by the entireties to the extent it is not subject to process by a creditor holding a claim against only one tenant.
8. “Insider” includes:
(3) A general partner in a partnership described in paragraph 2; or
(4) A corporation of which the debtor is a director, officer, or person in control, or a limited liability company of which the debtor is a governor, manager, or person in control;
(5) A general partner in a partnership described in paragraph 4; or
(2) A relative of a general partner in, of a general partner of, or of a person in control of the debtor;
(4) A general partner in a partnership described in paragraph 3; or
d. If the debtor is a limited liability company:
(1) A governor of the debtor;
(2) A manager of the debtor;
(5) A general partner described in paragraph 4; or
(6) A relative of a general partner, governor, manager, or person in control of the debtor; and
e. An “insider” also includes an affiliate, or an insider of an affiliate as if the affiliate were the debtor, and a managing agent of the debtor.
9. “Lien” means a charge against or an interest in property to secure payment of a debt or performance of an obligation, and includes a security interest created by agreement, a judicial lien, a common-law lien, or a statutory lien.
15. “Sign” means, with present intent to authenticate or adopt a record:
17. “Valid lien” means a lien that is effective against the holder of a judicial lien subsequently obtained by legal process or proceedings.
§ 13-02.1-02. Insolvency
§ 13-02.1-03. Value
2. For the purposes of subdivision b of subsection 1 of section 13-02.1-04 and section 13-02.1-05, a person gives a reasonably equivalent value if the person acquires an interest of the debtor in an asset pursuant to a regularly conducted, noncollusive foreclosure sale or execution of a power of sale for the acquisition or disposition of the interest of the debtor upon default under a mortgage, deed of trust, or security agreement.
§ 13-02.1-04. Transfer or obligation voidable as to present or future creditor
1. A transfer made or obligation incurred by a debtor is voidable as to a creditor, whether the creditor’s claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation:
2. In determining actual intent under subdivision a of subsection 1, consideration may be given, among other factors, to whether:
§ 13-02.1-05. Transfer or obligation voidable as to present creditor
3. Subject to subsection 2 of section 13-02.1-02, a creditor making a claim for relief under subsection 1 or 2 has the burden of proving the elements of the claim for relief by a preponderance of the evidence.
§ 13-02.1-06. When transfer is made or obligation is incurred
1. A transfer is made 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 which applicable law permits the transfer to be perfected cannot acquire an interest in the asset that is superior to the interest of the transferee. A transfer is made 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 chapter that is superior to the interest of the transferee.
2. If applicable law permits the transfer to be perfected as provided in subsection 1 and the transfer is not so perfected before the commencement of an action for relief under this chapter, the transfer is deemed to have been made immediately before the commencement of the action.
5. An oral obligation is incurred when it becomes effective between the parties. An obligation evidenced by a record is incurred when the record signed by the obligor is delivered to or for the benefit of the obligee.
§ 13-02.1-07. Remedies of creditor
1. In an action for relief against a transfer or obligation under this chapter, a creditor, subject to the limitations in section 13-02.1-08, may obtain:
b. Attachment or other provisional remedy against the asset transferred or other property of the transferee if available under applicable law; or
c. Subject to applicable principles of equity and in accordance with applicable rules of civil procedure:
§ 13-02.1-08. Defenses--Liability--Protection of transferee or obligee
1. A transfer or obligation is not voidable under subdivision a of subsection 1 of section 13-02.1-04 against a person that took in good faith and for a reasonably equivalent value given the debtor or against any subsequent transferee or obligee.
2. To the extent a transfer is avoidable in an action by the creditor under subdivision a of subsection 1 of section 13-02.1-07, the following rules apply:
a. Except as otherwise provided in this section, the creditor may recover judgment for the value of the asset transferred, as adjusted under subsection 3, or the amount necessary to satisfy the creditor’s claim, whichever is less. The judgment may be entered against:
(2) An immediate or mediate transferee of the first transferee, other than:
(b) An immediate or mediate good-faith transferee of a person described in subparagraph a.
b. Recovery pursuant to subdivision a of subsection 1 of section 13-02.1-07 or subsection 2 of section 13-02.1-07 of or from the asset transferred or its proceeds, by levy or otherwise, is available only against a person described in paragraph 1 or 2 of subdivision a.
4. Notwithstanding voidability of a transfer or an obligation under this chapter, a good-faith transferee or obligee is entitled, to the extent of the value given the debtor for the transfer or obligation, to:
a. A lien on or a right to retain an interest in the asset transferred;
b. Enforcement of an obligation incurred; or
5. A transfer is not voidable under subdivision b of subsection 1 of section 13-02.1-04 or section 13-02.1-05 if the transfer results from termination of a lease upon default by the debtor when the termination is pursuant to the lease and applicable law or enforcement of a security interest in compliance with chapter 41-09, other than acceptance of collateral in full or partial satisfaction of the obligation it secures.
6. A transfer is not voidable under subsection 2 of section 13-02.1-05:
a. To the extent the insider gave new value to or for the benefit of the debtor after the transfer was made, except to the extent the new value was secured by a valid lien;
7. The following rules determine the burden of proving matters referred to in this section:
a. A party that seeks to invoke subsection 1, 4, 5, or 6 has the burden of proving the applicability of that subsection.
b. Except as otherwise provided in subdivision c or d, the creditor has the burden of proving each applicable element of subsection 2 or 3.
c. The transferee has the burden of proving the applicability to the transferee of subparagraph a or b of paragraph 2 of subdivision a of subsection 2.
§ 13-02.1-09. Extinguishment of claim for relief
1. Under subdivision a of subsection 1 of section 13-02.1-04, not later than four years after the transfer was made or the obligation was incurred or, if later, not later than one year after the transfer or obligation was or could reasonably have been discovered by the claimant;
2. Under subdivision b of subsection 1 of section 13-02.1-04 or subsection 1 of section 13-02.1-05, not later than four years after the transfer was made or the obligation was incurred; or
3. Under subsection 2 of section 13-02.1-05, not later than one year after the transfer was made.
§ 13-02.1-10. Supplementary provisions
Unless displaced by the provisions of this chapter, the principles of law and equity, including the law merchant and the law relating to principal and agent, estoppel, laches, fraud, misrepresentation, duress, coercion, mistake, insolvency, or other validating or invalidating cause, supplement their provisions.
§ 13-02.1-11. Governing law
1. In this section, the following rules determine a debtor’s location:
§ 13-02.1-12. Application to series organization
a. “Protected series” means an arrangement, however denominated, created by a series organization that, pursuant to the law under which the series organization is organized, has the characteristics set forth in subdivision b.
§ 13-02.1-13. Relation to Electronic Signatures in Global and National Commerce Act
This chapter modified, limits, or supersedes the federal Electronic Signatures in Global and National Commerce Act [Pub. L. 106-229; 114 Stat. 464; 15 U.S.C. 7001 et seq.], but does not modify, limit, or supersede section 101(c) of that Act [15 U.S.C. 7001(c)], or authorize electronic delivery of any of the notices described in section 103(b) of that Act [15 U.S.C. 7003(b)].