N.Y. Debtor & Creditor Law § 274
Transfer or obligation voidable as to present creditor
Redline — January 1, 2015 → current.View current text →
Current — January 1, 2021
As of January 1, 2015
§ 274. Conveyances by persons in business. Every conveyance made\nwithout fair consideration when the person making it is engaged or is\nabout to engage in a business or transaction for which the property\nremaining in his hands after the conveyance is an unreasonably small\ncapital, is fraudulent as to creditors and as to other persons who\nbecome creditors during the continuance of such business or transaction\nwithout regard to his actual intent.\n
§ 274. Transfer or obligation voidable as to present creditor. (a) A\ntransfer made or obligation incurred by a debtor is voidable as to a\ncreditor whose claim arose before the transfer was made or the\nobligation was incurred if the debtor made the transfer or incurred the\nobligation without receiving a reasonably equivalent value in exchange\nfor the transfer or obligation and the debtor was insolvent at that time\nor the debtor became insolvent as a result of the transfer or\nobligation.\n (b) A transfer made by a debtor is voidable as to a creditor whose\nclaim arose before the transfer was made if the transfer was made to an\ninsider for an antecedent debt, the debtor was insolvent at that time,\nand the insider had reasonable cause to believe that the debtor was\ninsolvent.\n (c) Subject to subdivision (b) of section two hundred seventy-one of\nthis article, a creditor making a claim for relief under subdivision (a)\nor (b) of this section has the burden of proving the elements of the\nclaim for relief by a preponderance of the evidence.\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.