§ 6-16-2 - Insolvency. - Rhode Island Statutes

SECTION 6-16-2

   § 6-16-2  Insolvency. – (a) A debtor is insolvent if the sum of the debtor's debts is greater than allof the debtor's assets at a fair valuation.

   (b) A debtor who is generally not paying his or her debts asthey become due is presumed to be insolvent.

   (c) A partnership is insolvent under subsection (a) if thesum of the partnership's debts is greater than the aggregate, at a fairvaluation, of all of the partnership's assets and the sum of the excess of thevalue of each general partner's nonpartnership assets over the partner'snonpartnership debts.

   (d) Assets under this section do not include property thathas been transferred, concealed, or removed with intent to hinder, delay, ordefraud creditors or that has been transferred in a manner making the transfervoidable under this chapter.

   (e) Debts under this section do not include an obligation tothe extent it is secured by a valid lien on property of the debtor not includedas an asset.