[Editor's note: page numbers refer to pages of original report]

Table of Contents. . ii

I. Introduction . . . . . .1

II. Overview of Current Indiana Law . . . . . . 1

A. Existing Statutory Law . . . . . . 1

B. Existing Judicial Decisions and Their Effect . . . . . . 3

III. The Proposal For A New Act . . . . . . 5

A. General Reasons For Change . . . . . . 5

B. General Overview of the Uniform Act . . . . . . 6

1. General Comments and Coverage . . . . . . 6

2. Basic Structure . . . . . . 7

3. Reasonably Equivalent Value . . . . . . 7

4. Insolvency . . . . . . 8

5. Remedies . . . . . . 8

6. Defenses . . . . . . 8

7. Timing of Transfers and Statutes of Limitations . . . . . . 9

1. Badges of Fraud . . . . . . 9

2. Decision Not to Make Insider Preferences Fraudulent Transfers . . . . . . 10

3. Modifications to Exemption Laws . . . . . . 11

4. Other Modifications . . . . . . 12

IV. Section by Section Commentary of the Proposed Indiana Act . . . . . . 13

§ 1. Definitions . . . . . . 13

Comment to Section 1--Definitions . . . . . . 14

§ 2. Insolvency . . . . . . 17

Comment to Section 2--Definition of Insolvency . . . . . . 18

§ 3. Value . . . . . . 20

Comment to Section 3--Definition of Value . . . . . . 21

§ 4. Transfers Fraudulent as to Present and Future Creditors . . . . . . 23

Comment to Section 4--Transfers Void as Against Present and Future Creditors . . . . . . 23

§ 5. Transfers Fraudulent as to Present Creditors . . . . . . 28

Comment to Section 5--Transfer Fraudulent as to Present Creditors . . . . . . 28

§ 6. When Transfer is Made or Obligation is Incurred . . . . . . 29

Comment to Section 6--Definition of When a Transfer is Made or Obligation Incurred . . . . . . 29

§ 7. Remedies of Creditors . . . . . . 31

Comment to Section 7--Remedies . . . . . . 31

§ 8. Defenses, Liability, and Protection of Transferee . . . . . . 33

Comment to Section 8--Defenses . . . . . . 34

§ 9. Extinguishment of Cause of Action . . . . . . 35

Comment to Section 9--Extinguishment of Cause of Action . . . . . . 36

§ 10. Supplementary Provisions . . . . . . 36

Comment to Section 10--Supplementary Provisions . . . . . . 36

§ 11. Uniformity of Application and Construction . . . . . . 37

Comment to Section 11--Uniform Application . . . . . . 37

§ 12. Short Title . . . . . . 37

§ 13. Repeal . . . . . . 37

Comment to Section 13--Repeal . . . . . . 38

§ 14. Transition Provisions . . . . . . 38

Comment to Section 14--Transition Provisions . . . . . . 38

Amendment to Exemption Statute--Indiana Code § 34-2-28-1 . . . . . . 39

Comment for Proposed Change to Indiana Code § 34-2-28-1 . . . . . . 39

APPENDIX A [omitted in hypertext version] . . . . . . 41

PROPOSED INDIANA UNIFORM FRAUDULENT TRANSFER ACT . . . . . . 41

PROPOSED CHANGES TO OTHER LAWS . . . . . . 47

Beginning of the UFTA