N.Y. Debtor & Creditor Law § 271
Insolvency
Redline — January 1, 2015 → current.View current text →
Current — January 1, 2021
As of January 1, 2015
§ 271. Insolvency. 1. A person is insolvent when the present fair\nsalable value of his assets is less than the amount that will be\nrequired to pay his probable liability on his existing debts as they\nbecome absolute and matured.\n 2. In determining whether a partnership is insolvent there shall be\nadded to the partnership property the present fair salable value of the\nseparate assets of each general partner in excess of the amount probably\nsufficient to meet the claims of his separate creditors, and also the\namount of any unpaid subscription to the partnership of each limited\npartner, provided the present fair salable value of the assets of such\nlimited partner is probably sufficient to pay his debts, including such\nunpaid subscription.\n
§ 271. Insolvency. (a) A debtor is insolvent if, at a fair valuation,\nthe sum of the debtor's debts is greater than the sum of the debtor's\nassets.\n (b) A debtor that is generally not paying the debtor's debts as they\nbecome due other than as a result of a bona fide dispute is presumed to\nbe insolvent. The presumption imposes on the party against which the\npresumption is directed the burden of proving that the nonexistence of\ninsolvency is more probable than its existence.\n (c) Assets under this section do not include property that has been\ntransferred, concealed or removed with intent to hinder, delay or\ndefraud creditors, or that has been transferred in a manner making the\ntransfer voidable under this article.\n (d) Debts under this section do not include an obligation to the\nextent it is secured by a valid lien on property of the debtor not\nincluded as an asset.\n
Official source: NYS Open Legislation (New York State Senate). Reproduced from public-domain New York statutes; confirm against the official source for the current text. Not legal advice.