§ 6-16-4 - Transfers fraudulent as to present and future creditors. - Rhode Island Statutes

SECTION 6-16-4

   § 6-16-4  Transfers fraudulent as topresent and future creditors. – (a) A transfer made or obligation incurred by a debtor is fraudulent as to acreditor, whether the creditor's claim arose before or after the transfer wasmade or the obligation was incurred, if the debtor made the transfer orincurred the obligation:

   (1) With actual intent to hinder, delay, or defraud anycreditor of the debtor; or

   (2) Without receiving a reasonably equivalent value inexchange for the transfer or obligation, and the debtor:

   (i) Was engaged or was about to engage in a business or atransaction for which the remaining assets of the debtor were unreasonablysmall in relation to the business or transaction; or

   (ii) Intended to incur, or believed or reasonably should havebelieved that he or she would incur, debts beyond his or her ability to pay asthey became due.

   (b) In determining actual intent under subsection (a) (1),consideration may be given, among other factors, to whether:

   (1) The transfer or obligation was to an insider;

   (2) The debtor retained possession or control of the propertytransferred after the transfer;

   (3) The transfer or obligation was disclosed or concealed;

   (4) Before the transfer was made or obligation was incurred,the debtor had been sued or threatened with suit;

   (5) The transfer was of substantially all the debtor's assets;

   (6) The debtor absconded;

   (7) The debtor removed or concealed assets;

   (8) The value of the consideration received by the debtor wasreasonably equivalent to the value of the asset transferred or the amount ofthe obligation incurred;

   (9) The debtor was insolvent or became insolvent shortlyafter the transfer was made or the obligation was incurred;

   (10) The transfer occurred shortly before or shortly after asubstantial debt was incurred; and

   (11) The debtor transferred the essential assets of thebusiness to a lienor who transferred the assets to an insider of the debtor.