The Business Council supports the passage of A.5622 (Weinstein), allowing New York join the nineteen other states that have already adopted the Uniform Voidable Transfers Act. The act is currently being considered by an additional five states.
This bill would adopt the Uniform Law Commission's 2014 revised version of the Uniform Fraudulent Transfer Act, now known as the Uniform Voidable Transfers Act. The 2014 revisions made a number of improvements to earlier versions, including changing and clarifying terminology (such as referring to "voidable transfers" instead of the potentially misleading phrase "fraudulent transfers"); clarifying the choice-of-law determination; improving provisions for determining insolvency; and clarifying the burden of proof of each party.
This legislation essentially permits creditors to void a debtor’s transaction in two situations: when a debtor engages in a transaction with the intent to hinder, delay or defraud any creditor, or when a debtor makes a transfer without receiving “reasonably equivalent value” under certain conditions.
The passage of this law will bring New York into parity with many sister states that have updated their laws far more recently than New York’s statutes which date back to the 1920s. We agree with sponsor that this legislation maintains the basic principles of New York's longstanding law, but makes the law more consistent, predictable, efficient and cost effective. These are the right changes for New York’s employers.
For these reasons, The Business Council supports A.5622 (Weinstein) and urges its passage.