State’s Uniform Fraudulent Transfer Act refashioned as the Uniform Voidable Transaction Act
October 19, 2015
Senate Bill 161, which will be effective on January 1, 2016, will replace the Uniform Fraudulent Transfer Act (UFTA) with the Uniform Voidable Transactions Act (UVTA). In addition the bill makes several changes to the Corporations Code and the Probate Code which will clarify certain issues that had remained subject to question in connection with the UFTA and will also recognize rights and obligations of certain interested parties. The UVTA retains the general structure of the UFTA, which generally seeks to make voidable certain transfers of assets or creation of obligations tending to harm creditors, or when the transfer is made when the transferor is insolvent. Peter Munoz, partner with Reed Smith and member of the CBA Legal Affairs Committee prepared an analysis of SB 161 for CBA, which can be found here.