§ 6-16-5 - Transfers fraudulent as to present creditors. - Rhode Island Statutes

SECTION 6-16-5

   § 6-16-5  Transfers fraudulent as topresent creditors. – (a) A transfer made or obligation incurred by a debtor is fraudulent as to acreditor whose claim arose before the transfer was made or the obligation wasincurred if the debtor made the transfer or incurred the obligation withoutreceiving a reasonably equivalent value in exchange for the transfer orobligation and the debtor was insolvent at that time, or the debtor becameinsolvent as a result of the transfer or obligation.

   (b) A transfer made by a debtor is fraudulent as to acreditor whose claim arose before the transfer was made if the transfer wasmade to an insider for an antecedent debt, the debtor was insolvent at thattime, and the insider had reasonable cause to believe that the debtor wasinsolvent.