Texas Business & Commerce Code

§ 24.005 — TRANSFERS FRAUDULENT AS TO PRESENT AND FUTURE CREDITORS

BC § 24.005Title 3. INSOLVENCY, FRAUDULENT TRANSFERS, AND FRAUD · Ch. 24. UNIFORM FRAUDULENT TRANSFER ACT

Statute text

(a)A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or within a reasonable time after the transfer was made or the obligation was incurred, 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 the debtor would incur, debts beyond the debtor's ability to pay as they became due.

(b)In determining actual intent under Subsection (a)(1) of this section, consideration may be given, among other factors, to whether:

…

Legislative history

Amended by Acts 1987, 70th Leg., ch. 1004, Sec. 1, eff. Sept. 1, 1987; Acts 1993, 73rd Leg., ch. 570, Sec. 10, eff. Sept. 1, 1993.