Appendix E: Uniform Fraudulent Transfer Act, 740 ILCS 160/1 (Illinois)

Author:Gregory Germain
Pages:411-417
 
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APPENDIX E: Uniform Fraudulent Transfer Act, 740 ILCS 160/1 (Illinois)
Sec. 1. This Act shall be known and may be cited as the Uniform Fraudulent Transfer Act.
Sec. 2. As used in this Act:
(a) "Affiliate" means:
(1) a person who directly or indirectly owns, controls, or holds with power to vote, 20%
or more of the outstanding voting securities of the debtor, other than a person who holds
the securities,
(A) as a fiduciary or agent without sole discretionary power to vote the securities; or
(B) solely to secure a debt, if the person has not exercised the power to vote;
(2) a corporation with 20% or more outstanding voting securities which are directly or
indirectly owned, controlled, or held with power to vote, by the debtor or a person who
directly or indirectly owns, controls, or holds with power to vote, 20% or more of the
outstanding voting securities of the debtor, other than a person who holds the securities,
(A) as a fiduciary or agent without sole power to vote the securities; or
(B) solely to secure a debt, if the person has not in fact exercised the power to vote;
(3) a person whose business is operated by the debtor under a lease or other agreement,
or a person substantially all of whose assets are controlled by the debtor; or
(4) a person who operates the debtor's business under a lease or other agreement or
controls substantially all of the debtor's assets.
(b) "Asset" means property of a debtor, but the term does not include:
(1) property to the extent it is encumbered by a valid lien;
(2) property to the extent it is generally exempt under laws of this State; or
(3) an interest in property held in tenancy by the entireties to the extent it is not subject
to process by a creditor holding a claim against only one tenant.
(c) "Claim" means a right to payment, whether or not the right is reduced to judgment,
liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal,
equitable, secured, or unsecured.
(d) "Creditor" means a person who has a claim, including a claim for past-due child support.
(e) "Debt" means liability on a claim.
(f) "Debtor" means a person who is liable on a claim.
(g) "Insider" includes:
(1) if the debtor is an individual,
(A) a relative of the debtor or of a general partner of the debtor;
(B) a partnership in which the debtor is a general partner;
(C) a general partner in a partnership described in clause (B); or

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