Fraudulent Conveyance

A conof which is to avoid some duty or debt due by or incumbent on the party making it.

2 Kent, Comm. 440; 4 Kent, Comm. 462.

There must be:,(a) A creditor to be defrauded; but subsequent creditors are entitled to impeach a conveyance for fraud. 118 Mass. 527. (b) A conveyance by the debtor; but the form of the conveyance is immaterial. 89 Ind. 117. (c) Of property of value, out of which the creditor could have made a portion of his claim. 46 Mich. 243; 52 Vt. 45; 67 Me. 183. (d) With intent to hinder, delay, or defraud (88 N. Y. 669); but the fraud may arise from the nature and necessary result of the transaction, without regard to the actual intention of the parties (108 111. 502). Statute of Fraudulent Conveyances. Fraudulent conveyances received early attention; and the statutes of 13 Eliz. c.

5, and 27 Eliz. c.

4, made perpetual by 29 Eliz. c. 18, declared all conveyances made with intent to defraud creditors, etc., to be void. This statute, on which all subsequent legislation has been patterned, defined a fraudulent conveyance as "a conveyance, the object, tendency, or effect of which is to avoid some duty or debt due by or incumbent upon the party making the conveyance." By a liberal construction, it has become the settled English law that a voluntary conveyance shall be deemed fraudulent against a subsequent purchaser, even with notice.

9 East, 69; 2 Sharswood, Bl. Comm. 296; Roberts, Fraud. Conv. 2, 3.

Voluntary conveyances are not so construed in the United States, however, where the subsequent purchaser has notice, especially if there be a good consideration.

2 Gray (Mass.) 447.

These statutes have been generally adopted in the United States as the foundation of all the state statutes upon this subject.

1 Story, Eq. Jur. 353; 4 Kent, Comm. 462, 463.