The Uniform Voidable Transactions Act - SSRN papers

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The Uniform Voidable Transactions Act; or, the 2014 Amendments to the Uniform Fraudulent Transfer Act* By Kenneth C. Kettering**

In 2014, the National Conference of Commissioners on Uniform State Laws approved a set of amendments to the Uniform Fraudulent Transfer Act. Among other changes, the amendments renamed the act the Uniform Voidable Transactions Act. In this paper, the reporter for the committee that drafted the amendments describes the amendment project and discusses the changes that were made to the act.

Contents I. Introduction ....................................................................................... II. The Amendment Project and Its Scope.............................................. A. The Process.................................................................................. B. Selected Changes Not Made by the 2014 Amendments .............. 1. Charitable Contributions....................................................... 2. Conformity to Other Features of Bankruptcy Code § 548.... 3. Attorney’s Fees and Punitive Damages.................................. 4. Insider Preferences and the Definition of “Insider”............... III. The Main Features of the 2014 Amendments.................................... A. Choice of Law.............................................................................. 1. Current Law and the Motivation for Change ........................ 2. The New Choice of Law Rule ............................................... 3. The New Rule and the Extraterritorial Reach of the Act....... 4. Jurisdictions Whose Avoidance Law Is Substantially Debased 5. Avoidance for Reasons Other than Depletion of Assets ........

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* This paper speaks as of November 27, 2014. References in this paper to the Bankruptcy Code are to title 11, United States Code. References to the Uniform Commercial Code sometimes use its acronym, UCC. ** The author served as the Reporter for the Drafting Committee on Amendments to the Uniform Voidable Transactions Act (formerly the Uniform Fraudulent Transfer Act) (referred to in this paper as the “Drafting Committee”). This paper benefited from comments by Edwin E. Smith, who served as Chair of the Drafting Committee, and by Stephen Sepinuck. It also benefited from comments by Steven Harris and Steven Weise on Part III.F and by Daniel Kleinberger on Part III.H. The views expressed in this paper are not necessarily those of the Drafting Committee, the Study Committee that preceded it, the National Conference of Commissioners on Uniform State Laws, or the aforementioned individuals. The author’s email address is [email protected]

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The Business Lawyer; Vol. 70, Summer 2015 B. C. D. E. F.

The New Name and Related Matters ........................................... Burden of Proof and Standard of Proof ....................................... Definition of “Insolvency” ............................................................ Good-Faith Transferees and the Section 8(a) Defense ................. Safe Harbor for Article 9 Remedies: Exclusion of Strict Foreclosure .................................................................................. G. Technical Corrections Relating to Defenses and Remedies .......... H. Series Organizations..................................................................... I. Drafting Observations .................................................................. 1. Stylistic Changes ................................................................... 2. The 1984 Technical Corrections........................................... 3. Transition.............................................................................. IV. Conclusion .........................................................................................

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I. INTRODUCTION The fundamental things apply, as time goes by. Few legal