S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5622
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2019
                                ___________
 
 Introduced  by  M.  of A. WEINSTEIN, TAYLOR -- read once and referred to
   the Committee on Judiciary
 
 AN ACT to amend the debtor and creditor law, the civil practice law  and
   rules,  the  estates,  powers  and trusts law and the workers' compen-
   sation law, in relation to enacting the "uniform voidable transactions
   act"; and to repeal certain provisions of the debtor and creditor  law
   relating to fraudulent conveyances
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "uniform voidable transactions act".
   §  2.  Article 10 of the debtor and creditor law is REPEALED and a new
 article 10 is added to read as follows:
                                ARTICLE 10
                     UNIFORM VOIDABLE TRANSACTIONS ACT
 SECTION 270.   DEFINITIONS.
         271.   INSOLVENCY.
         272.   VALUE.
         273.   TRANSFER OR OBLIGATION VOIDABLE AS TO PRESENT  OR  FUTURE
                  CREDITOR.
         274.   TRANSFER OR OBLIGATION VOIDABLE AS TO PRESENT CREDITOR.
         275.   WHEN TRANSFER IS MADE OR OBLIGATION IS INCURRED.
         276.   REMEDIES OF CREDITOR.
         276-A.   ATTORNEY'S  FEES  IN ACTION OR SPECIAL PROCEEDING UNDER
                  THIS ARTICLE TO AVOID A TRANSFER OR OBLIGATION.
         277.   DEFENSES, LIABILITY,  AND  PROTECTION  OF  TRANSFEREE  OR
                  OBLIGEE.
         278.   EXTINGUISHMENT OF CLAIM FOR RELIEF.
         279.   GOVERNING LAW.
         280.   SUPPLEMENTARY PROVISIONS.
         281. UNIFORMITY OF APPLICATION AND CONSTRUCTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00878-01-9

 A. 5622                             2
 
         281-A. RELATION  TO ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL
                  COMMERCE ACT.
   § 270. DEFINITIONS. AS USED IN THIS ARTICLE:
   (A) "AFFILIATE" MEANS:
   (1)  A PERSON THAT DIRECTLY OR INDIRECTLY OWNS, CONTROLS OR HOLDS WITH
 POWER TO VOTE, TWENTY PERCENT OR MORE OF THE OUTSTANDING VOTING  SECURI-
 TIES OF THE DEBTOR, OTHER THAN A PERSON THAT HOLDS THE SECURITIES:
   (I)  AS  A FIDUCIARY OR AGENT WITHOUT SOLE DISCRETIONARY POWER TO VOTE
 THE SECURITIES; OR
   (II) SOLELY TO SECURE A DEBT, IF THE PERSON HAS NOT IN FACT  EXERCISED
 THE POWER TO VOTE;
   (2)  A  CORPORATION TWENTY PERCENT OR MORE OF WHOSE OUTSTANDING VOTING
 SECURITIES ARE DIRECTLY OR INDIRECTLY OWNED,  CONTROLLED  OR  HELD  WITH
 POWER  TO  VOTE,  BY  THE DEBTOR OR A PERSON THAT DIRECTLY OR INDIRECTLY
 OWNS, CONTROLS OR HOLDS, WITH POWER TO VOTE, TWENTY PERCENT OR  MORE  OF
 THE  OUTSTANDING  VOTING  SECURITIES  OF THE DEBTOR, OTHER THAN A PERSON
 THAT HOLDS THE SECURITIES:
   (I) AS A FIDUCIARY OR AGENT WITHOUT SOLE DISCRETIONARY POWER  TO  VOTE
 THE SECURITIES; OR
   (II)  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  THAT  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 NON-BANKRUPTCY
 LAW; OR
   (3) AN INTEREST IN PROPERTY HELD IN TENANCY BY  THE  ENTIRETY  TO  THE
 EXTENT  IT  IS  NOT  SUBJECT  TO  PROCESS  BY A CREDITOR HOLDING A CLAIM
 AGAINST ONLY ONE TENANT.
   (C) "CLAIM", EXCEPT AS USED IN "CLAIM FOR RELIEF", MEANS  A  RIGHT  TO
 PAYMENT,  WHETHER  OR  NOT THE RIGHT IS REDUCED TO JUDGMENT, LIQUIDATED,
 UNLIQUIDATED, FIXED, CONTINGENT, MATURED,  UNMATURED,  DISPUTED,  UNDIS-
 PUTED, LEGAL, EQUITABLE, SECURED OR UNSECURED.
   (D) "CREDITOR" MEANS A PERSON THAT HAS A CLAIM.
   (E) "DEBT" MEANS LIABILITY ON A CLAIM.
   (F) "DEBTOR" MEANS A PERSON THAT IS LIABLE ON A CLAIM.
   (G)  "ELECTRONIC"  MEANS  RELATING  TO  TECHNOLOGY  HAVING ELECTRICAL,
 DIGITAL, MAGNETIC, WIRELESS, OPTICAL, ELECTROMAGNETIC OR  SIMILAR  CAPA-
 BILITIES.
   (H) "INSIDER" INCLUDES:
   (1) IF THE DEBTOR IS AN INDIVIDUAL:
   (I) A RELATIVE OF THE DEBTOR OR OF A GENERAL PARTNER OF THE DEBTOR;
   (II) A PARTNERSHIP IN WHICH THE DEBTOR IS A GENERAL PARTNER;
   (III)  A  GENERAL  PARTNER  IN A PARTNERSHIP DESCRIBED IN SUBPARAGRAPH
 (II) OF THIS PARAGRAPH; OR
   (IV) A CORPORATION OF WHICH THE DEBTOR  IS  A  DIRECTOR,  OFFICER,  OR
 PERSON IN CONTROL;
   (2) IF THE DEBTOR IS A CORPORATION:
   (I) A DIRECTOR OF THE DEBTOR;
   (II) AN OFFICER OF THE DEBTOR;
   (III) A PERSON IN CONTROL OF THE DEBTOR;
   (IV) A PARTNERSHIP IN WHICH THE DEBTOR IS A GENERAL PARTNER;

 A. 5622                             3
 
   (V)  A GENERAL PARTNER IN A PARTNERSHIP DESCRIBED IN SUBPARAGRAPH (IV)
 OF THIS PARAGRAPH; OR
   (VI)  A  RELATIVE OF A GENERAL PARTNER, DIRECTOR, OFFICER OR PERSON IN
 CONTROL OF THE DEBTOR;
   (3) IF THE DEBTOR IS A PARTNERSHIP:
   (I) A GENERAL PARTNER IN THE DEBTOR;
   (II) A RELATIVE OF A GENERAL PARTNER IN, A GENERAL  PARTNER  OF  OR  A
 PERSON IN CONTROL OF THE DEBTOR;
   (III) ANOTHER PARTNERSHIP IN WHICH THE DEBTOR IS A GENERAL PARTNER;
   (IV)  A  GENERAL  PARTNER  IN  A PARTNERSHIP DESCRIBED IN SUBPARAGRAPH
 (III) OF THIS PARAGRAPH; OR
   (V) A PERSON IN CONTROL OF THE DEBTOR;
   (4) AN AFFILIATE, OR AN INSIDER OF AN AFFILIATE AS  IF  THE  AFFILIATE
 WERE THE DEBTOR; AND
   (5) A MANAGING AGENT OF THE DEBTOR.
   (I) "LIEN" MEANS A CHARGE AGAINST OR AN INTEREST IN PROPERTY TO SECURE
 PAYMENT  OF A DEBT OR PERFORMANCE OF AN OBLIGATION, AND INCLUDES A SECU-
 RITY INTEREST CREATED BY AGREEMENT, A JUDICIAL LIEN OBTAINED BY LEGAL OR
 EQUITABLE PROCESS OR PROCEEDINGS, A  COMMON-LAW  LIEN,  OR  A  STATUTORY
 LIEN.
   (J) "ORGANIZATION" MEANS A PERSON OTHER THAN AN INDIVIDUAL.
   (K)  "PERSON"  MEANS  AN INDIVIDUAL, ESTATE, PARTNERSHIP, ASSOCIATION,
 TRUST, BUSINESS OR NONPROFIT ENTITY, PUBLIC CORPORATION,  GOVERNMENT  OR
 GOVERNMENTAL  SUBDIVISION,  AGENCY OR INSTRUMENTALITY, OR OTHER LEGAL OR
 COMMERCIAL ENTITY.
   (L) "PROPERTY" MEANS ANYTHING THAT MAY BE THE SUBJECT OF OWNERSHIP.
   (M) "RECORD" MEANS INFORMATION THAT IS INSCRIBED ON A TANGIBLE  MEDIUM
 OR THAT IS STORED IN AN ELECTRONIC OR OTHER MEDIUM AND IS RETRIEVABLE IN
 PERCEIVABLE FORM.
   (N) "RELATIVE" MEANS AN INDIVIDUAL RELATED BY CONSANGUINITY WITHIN THE
 THIRD  DEGREE AS DETERMINED BY THE COMMON LAW, A SPOUSE OR AN INDIVIDUAL
 RELATED TO A SPOUSE WITHIN  THE  THIRD  DEGREE  AS  SO  DETERMINED,  AND
 INCLUDES  AN  INDIVIDUAL  IN  AN  ADOPTIVE RELATIONSHIP WITHIN THE THIRD
 DEGREE.
   (O) "SIGN" MEANS, WITH PRESENT  INTENT  TO  AUTHENTICATE  OR  ADOPT  A
 RECORD:
   (I) TO EXECUTE OR ADOPT A TANGIBLE SYMBOL; OR
   (II) TO ATTACH TO OR LOGICALLY ASSOCIATE WITH THE RECORD AN ELECTRONIC
 SYMBOL, SOUND, OR PROCESS.
   (P)  "TRANSFER"  MEANS  EVERY  MODE,  DIRECT  OR INDIRECT, ABSOLUTE OR
 CONDITIONAL, VOLUNTARY OR INVOLUNTARY, OF DISPOSING OF OR  PARTING  WITH
 AN  ASSET  OR  AN  INTEREST  IN AN ASSET, AND INCLUDES PAYMENT OF MONEY,
 RELEASE, LEASE, LICENSE, AND CREATION OF A LIEN OR OTHER ENCUMBRANCE.
   (Q) "VALID LIEN" MEANS A LIEN THAT IS EFFECTIVE AGAINST THE HOLDER  OF
 A  JUDICIAL  LIEN SUBSEQUENTLY OBTAINED BY LEGAL OR EQUITABLE PROCESS OR
 PROCEEDINGS.
   § 271. INSOLVENCY.  (A) A DEBTOR IS INSOLVENT IF, AT A FAIR VALUATION,
 THE SUM OF THE DEBTOR'S DEBTS IS GREATER THAN THE SUM  OF  THE  DEBTOR'S
 ASSETS.
   (B)  A  DEBTOR THAT IS GENERALLY NOT PAYING THE DEBTOR'S DEBTS AS THEY
 BECOME DUE OTHER THAN AS A RESULT OF A BONA FIDE DISPUTE IS PRESUMED  TO
 BE  INSOLVENT.    THE PRESUMPTION IMPOSES ON THE PARTY AGAINST WHICH THE
 PRESUMPTION IS DIRECTED THE BURDEN OF PROVING THAT THE  NONEXISTENCE  OF
 INSOLVENCY IS MORE PROBABLE THAN ITS EXISTENCE.
   (C)  ASSETS  UNDER  THIS SECTION DO NOT INCLUDE PROPERTY THAT HAS BEEN
 TRANSFERRED, CONCEALED OR  REMOVED  WITH  INTENT  TO  HINDER,  DELAY  OR

 A. 5622                             4
 
 DEFRAUD  CREDITORS,  OR THAT HAS BEEN TRANSFERRED IN A MANNER MAKING THE
 TRANSFER VOIDABLE UNDER THIS ARTICLE.
   (D)  DEBTS  UNDER  THIS  SECTION  DO  NOT INCLUDE AN OBLIGATION TO THE
 EXTENT IT IS SECURED BY A VALID LIEN  ON  PROPERTY  OF  THE  DEBTOR  NOT
 INCLUDED AS AN ASSET.
   §  272. VALUE.  (A) VALUE IS GIVEN FOR A TRANSFER OR AN OBLIGATION IF,
 IN EXCHANGE FOR THE TRANSFER OR OBLIGATION, PROPERTY IS  TRANSFERRED  OR
 AN  ANTECEDENT  DEBT IS SECURED OR SATISFIED, BUT VALUE DOES NOT INCLUDE
 AN UNPERFORMED PROMISE MADE OTHERWISE THAN IN THE ORDINARY COURSE OF THE
 PROMISOR'S BUSINESS TO FURNISH SUPPORT TO THE DEBTOR OR ANOTHER PERSON.
   (B) FOR THE PURPOSES OF PARAGRAPH TWO OF SUBDIVISION  (A)  OF  SECTION
 TWO  HUNDRED  SEVENTY-THREE AND SECTION TWO HUNDRED SEVENTY-FOUR OF THIS
 ARTICLE, A PERSON GIVES A REASONABLY  EQUIVALENT  VALUE  IF  THE  PERSON
 ACQUIRES  AN  INTEREST OF THE DEBTOR IN AN ASSET PURSUANT TO A REGULARLY
 CONDUCTED, NONCOLLUSIVE FORECLOSURE SALE OR EXECUTION OF A POWER OF SALE
 FOR THE ACQUISITION OR DISPOSITION OF THE INTEREST OF  THE  DEBTOR  UPON
 DEFAULT UNDER A MORTGAGE, DEED OF TRUST, OR SECURITY AGREEMENT.
   (C)  A  TRANSFER IS MADE FOR PRESENT VALUE IF THE EXCHANGE BETWEEN THE
 DEBTOR AND THE TRANSFEREE IS INTENDED BY THEM TO BE CONTEMPORANEOUS  AND
 IS IN FACT SUBSTANTIALLY CONTEMPORANEOUS.
   §  273. TRANSFER OR OBLIGATION VOIDABLE AS TO PRESENT OR FUTURE CREDI-
 TOR.  (A) A TRANSFER MADE OR OBLIGATION INCURRED BY A DEBTOR IS VOIDABLE
 AS TO A CREDITOR, WHETHER THE CREDITOR'S CLAIM AROSE BEFORE OR AFTER THE
 TRANSFER WAS MADE OR THE OBLIGATION WAS INCURRED, IF THE DEBTOR MADE THE
 TRANSFER OR INCURRED THE OBLIGATION:
   (1) WITH ACTUAL INTENT TO HINDER, DELAY OR DEFRAUD ANY CREDITOR OF THE
 DEBTOR; OR
   (2) WITHOUT RECEIVING A REASONABLY EQUIVALENT VALUE  IN  EXCHANGE  FOR
 THE TRANSFER OR OBLIGATION, AND THE DEBTOR:
   (I)  WAS ENGAGED OR WAS ABOUT TO ENGAGE IN A BUSINESS OR A TRANSACTION
 FOR WHICH THE REMAINING ASSETS OF THE DEBTOR WERE UNREASONABLY SMALL  IN
 RELATION TO THE BUSINESS OR TRANSACTION; OR
   (II) INTENDED TO INCUR, OR BELIEVED OR REASONABLY SHOULD HAVE BELIEVED
 THAT THE DEBTOR WOULD INCUR, DEBTS BEYOND THE DEBTOR'S ABILITY TO PAY AS
 THEY BECAME DUE.
   (B)  IN  DETERMINING  ACTUAL INTENT UNDER PARAGRAPH ONE OF SUBDIVISION
 (A) OF THIS SECTION, 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  PROPERTY  TRANS-
 FERRED 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 WAS  REASON-
 ABLY  EQUIVALENT  TO THE VALUE OF THE ASSET TRANSFERRED OR THE AMOUNT OF
 THE OBLIGATION INCURRED;
   (9) THE DEBTOR WAS INSOLVENT OR BECAME  INSOLVENT  SHORTLY  AFTER  THE
 TRANSFER WAS MADE OR THE OBLIGATION WAS INCURRED;
   (10)  THE TRANSFER OCCURRED SHORTLY BEFORE OR SHORTLY AFTER A SUBSTAN-
 TIAL DEBT WAS INCURRED; AND
   (11) THE DEBTOR TRANSFERRED THE ESSENTIAL ASSETS OF THE BUSINESS TO  A
 LIENOR THAT TRANSFERRED THE ASSETS TO AN INSIDER OF THE DEBTOR.

 A. 5622                             5
 
   (C) A CREDITOR MAKING A CLAIM FOR RELIEF UNDER SUBDIVISION (A) OF THIS
 SECTION  HAS  THE BURDEN OF PROVING THE ELEMENTS OF THE CLAIM FOR RELIEF
 BY A PREPONDERANCE OF THE EVIDENCE.
   §  274. TRANSFER OR OBLIGATION VOIDABLE AS TO PRESENT CREDITOR.  (A) A
 TRANSFER MADE OR OBLIGATION INCURRED BY A DEBTOR IS  VOIDABLE  AS  TO  A
 CREDITOR  WHOSE  CLAIM  AROSE  BEFORE THE TRANSFER WAS MADE OR THE OBLI-
 GATION WAS INCURRED IF THE DEBTOR MADE  THE  TRANSFER  OR  INCURRED  THE
 OBLIGATION  WITHOUT  RECEIVING A REASONABLY EQUIVALENT VALUE IN EXCHANGE
 FOR THE TRANSFER OR OBLIGATION AND THE DEBTOR WAS INSOLVENT AT THAT TIME
 OR THE DEBTOR BECAME INSOLVENT AS A RESULT  OF  THE  TRANSFER  OR  OBLI-
 GATION.
   (B)  A  TRANSFER  MADE  BY A DEBTOR IS VOIDABLE AS TO A CREDITOR WHOSE
 CLAIM AROSE BEFORE THE TRANSFER WAS MADE IF THE TRANSFER WAS MADE TO  AN
 INSIDER  FOR  AN ANTECEDENT DEBT, THE DEBTOR WAS INSOLVENT AT THAT TIME,
 AND THE INSIDER HAD REASONABLE CAUSE TO  BELIEVE  THAT  THE  DEBTOR  WAS
 INSOLVENT.
   (C)  SUBJECT  TO SUBDIVISION (B) OF SECTION TWO HUNDRED SEVENTY-ONE OF
 THIS ARTICLE, A CREDITOR MAKING A CLAIM FOR RELIEF UNDER SUBDIVISION (A)
 OR (B) OF THIS SECTION HAS THE BURDEN OF PROVING  THE  ELEMENTS  OF  THE
 CLAIM FOR RELIEF BY A PREPONDERANCE OF THE EVIDENCE.
   §  275.  WHEN  TRANSFER  IS  MADE  OR  OBLIGATION IS INCURRED. FOR THE
 PURPOSES OF THIS ARTICLE:
   (A) A TRANSFER IS MADE:
   (1) WITH RESPECT TO AN ASSET  THAT  IS  REAL  PROPERTY  OTHER  THAN  A
 FIXTURE,  BUT  INCLUDING  THE  INTEREST OF A SELLER OR PURCHASER UNDER A
 CONTRACT FOR THE SALE  OF  THE  ASSET,  WHEN  THE  TRANSFER  IS  SO  FAR
 PERFECTED  THAT  A  GOOD-FAITH  PURCHASER  OF  THE ASSET FROM THE DEBTOR
 AGAINST WHICH APPLICABLE LAW PERMITS THE TRANSFER TO BE PERFECTED CANNOT
 ACQUIRE AN INTEREST IN THE ASSET THAT IS SUPERIOR TO THE INTEREST OF THE
 TRANSFEREE; AND
   (2) WITH RESPECT TO AN ASSET THAT IS NOT REAL PROPERTY OR  THAT  IS  A
 FIXTURE,  WHEN  THE  TRANSFER  IS  SO FAR PERFECTED THAT A CREDITOR ON A
 SIMPLE CONTRACT CANNOT ACQUIRE A JUDICIAL LIEN OTHERWISE THAN UNDER THIS
 ARTICLE THAT IS SUPERIOR TO THE INTEREST OF THE TRANSFEREE;
   (B) IF APPLICABLE LAW PERMITS THE TRANSFER TO BE PERFECTED AS PROVIDED
 IN SUBDIVISION (A) OF THIS SECTION AND THE TRANSFER IS NOT SO  PERFECTED
 BEFORE  THE COMMENCEMENT OF AN ACTION FOR RELIEF UNDER THIS ARTICLE, THE
 TRANSFER IS DEEMED MADE  IMMEDIATELY  BEFORE  THE  COMMENCEMENT  OF  THE
 ACTION;
   (C)  IF APPLICABLE LAW DOES NOT PERMIT THE TRANSFER TO BE PERFECTED AS
 PROVIDED IN SUBDIVISION (A) OF THIS SECTION, THE TRANSFER IS  MADE  WHEN
 IT BECOMES EFFECTIVE BETWEEN THE DEBTOR AND THE TRANSFEREE;
   (D) A TRANSFER IS NOT MADE UNTIL THE DEBTOR HAS ACQUIRED RIGHTS IN THE
 ASSET TRANSFERRED; AND
   (E) AN OBLIGATION IS INCURRED:
   (1) IF ORAL, WHEN IT BECOMES EFFECTIVE BETWEEN THE PARTIES; OR
   (2) IF EVIDENCED BY A RECORD, WHEN THE RECORD SIGNED BY THE OBLIGOR IS
 DELIVERED TO OR FOR THE BENEFIT OF THE OBLIGEE.
   §  276.  REMEDIES OF CREDITOR.   (A) IN AN ACTION FOR RELIEF AGAINST A
 TRANSFER OR OBLIGATION UNDER THIS ARTICLE, A CREDITOR,  SUBJECT  TO  THE
 LIMITATIONS  IN  SECTION  TWO HUNDRED SEVENTY-SEVEN OF THIS ARTICLE, MAY
 OBTAIN:
   (1) AVOIDANCE OF THE TRANSFER OR OBLIGATION TO THE EXTENT NECESSARY TO
 SATISFY THE CREDITOR'S CLAIM;

 A. 5622                             6
 
   (2) AN ATTACHMENT OR OTHER PROVISIONAL REMEDY AGAINST THE ASSET TRANS-
 FERRED OR OTHER PROPERTY OF THE TRANSFEREE IF AVAILABLE UNDER APPLICABLE
 LAW; AND
   (3)  SUBJECT TO APPLICABLE PRINCIPLES OF EQUITY AND IN ACCORDANCE WITH
 APPLICABLE RULES OF CIVIL PROCEDURE:
   (I) AN INJUNCTION AGAINST FURTHER  DISPOSITION  BY  THE  DEBTOR  OR  A
 TRANSFEREE, OR BOTH, OF THE ASSET TRANSFERRED OR OF OTHER PROPERTY;
   (II) APPOINTMENT OF A RECEIVER TO TAKE CHARGE OF THE ASSET TRANSFERRED
 OR OF OTHER PROPERTY OF THE TRANSFEREE; OR
   (III) ANY OTHER RELIEF THE CIRCUMSTANCES MAY REQUIRE.
   (B)  IF  A  CREDITOR  HAS  OBTAINED  A JUDGMENT ON A CLAIM AGAINST THE
 DEBTOR, THE CREDITOR, IF THE COURT SO ORDERS, MAY LEVY EXECUTION ON  THE
 ASSET TRANSFERRED OR ITS PROCEEDS.
   §  276-A.  ATTORNEY'S  FEES IN ACTION OR SPECIAL PROCEEDING UNDER THIS
 ARTICLE TO AVOID A TRANSFER OR  OBLIGATION.  IN  AN  ACTION  OR  SPECIAL
 PROCEEDING  UNDER THIS ARTICLE IN WHICH A JUDGMENT CREDITOR WHO HAS BEEN
 AWARDED BY COURT ORDER OR AGREEMENT OR HAS WAIVED ATTORNEY'S FEES AVAIL-
 ABLE TO PREVAILING PARTIES BY THE TERMS OF THE STATUTE UNDER  WHICH  THE
 CREDITOR'S  UNDERLYING  CLAIM  AROSE,  OR  REPRESENTATIVE  ASSERTING THE
 RIGHTS OF SUCH JUDGMENT CREDITOR, RECOVERS JUDGMENT AVOIDING ANY  TRANS-
 FER OR OBLIGATION, THE JUSTICE OR SURROGATE PRESIDING AT THE TRIAL SHALL
 FIX  THE  REASONABLE ATTORNEY'S FEES OF THE CREDITOR, OR CREDITOR REPRE-
 SENTATIVE, INCURRED IN SUCH ACTION  OR  SPECIAL  PROCEEDING  UNDER  THIS
 ARTICLE  AS  AN  ADDITIONAL  AMOUNT  REQUIRED  TO SATISFY THE CREDITOR'S
 CLAIM, AND THE CREDITOR, OR CREDITOR REPRESENTATIVE, SHALL HAVE JUDGMENT
 THEREFOR AGAINST THE DEBTOR AND, SUBJECT TO THE DEFENSES AND PROTECTIONS
 IN SECTION TWO HUNDRED SEVENTY-SEVEN OF THIS ARTICLE, AGAINST ANY TRANS-
 FEREE (OR PERSON FOR WHOSE BENEFIT THE TRANSFER WAS MADE)  AGAINST  WHOM
 RELIEF  IS ORDERED, IN ADDITION TO THE OTHER RELIEF GRANTED BY THE JUDG-
 MENT. THE FEE SO FIXED SHALL BE WITHOUT REGARD,  OR  PREJUDICE,  TO  ANY
 AGREEMENT,  EXPRESS  OR  IMPLIED,  BETWEEN THE CREDITOR, OR THE CREDITOR
 REPRESENTATIVE, AND HIS OR HER ATTORNEY WITH RESPECT TO THE COMPENSATION
 OF SUCH ATTORNEY.
   § 277. DEFENSES, LIABILITY, AND PROTECTION OF TRANSFEREE  OR  OBLIGEE.
 (A)  A  TRANSFER  OR  OBLIGATION  IS NOT VOIDABLE UNDER PARAGRAPH ONE OF
 SUBDIVISION (A) OF SECTION TWO HUNDRED  SEVENTY-THREE  OF  THIS  ARTICLE
 AGAINST A PERSON THAT TOOK IN GOOD FAITH AND FOR A REASONABLY EQUIVALENT
 VALUE GIVEN THE DEBTOR OR AGAINST ANY SUBSEQUENT TRANSFEREE OR OBLIGEE.
   (B)  TO  THE EXTENT A TRANSFER IS AVOIDABLE IN AN ACTION BY A CREDITOR
 UNDER PARAGRAPH ONE OF SUBDIVISION (A) OF SECTION TWO  HUNDRED  SEVENTY-
 SIX OF THIS ARTICLE THE FOLLOWING RULES APPLY:
   (1)  EXCEPT  AS  OTHERWISE  PROVIDED IN THIS SECTION, THE CREDITOR MAY
 RECOVER JUDGMENT FOR THE VALUE OF THE  ASSET  TRANSFERRED,  AS  ADJUSTED
 UNDER SUBDIVISION (C) OF THIS SECTION, OR THE AMOUNT NECESSARY TO SATIS-
 FY  THE CREDITOR'S CLAIM, WHICHEVER IS LESS. THE JUDGMENT MAY BE ENTERED
 AGAINST:
   (I) THE FIRST TRANSFEREE OF THE ASSET OR THE PERSON FOR WHOSE  BENEFIT
 THE TRANSFER WAS MADE; OR
   (II) AN IMMEDIATE OR MEDIATE TRANSFEREE OF THE FIRST TRANSFEREE, OTHER
 THAN:
   (A) A GOOD-FAITH TRANSFEREE THAT TOOK FOR VALUE; OR
   (B)  AN  IMMEDIATE  OR  MEDIATE  GOOD-FAITH  TRANSFEREE  OF  A  PERSON
 DESCRIBED IN CLAUSE (A) OF THIS SUBPARAGRAPH.
   (2) RECOVERY PURSUANT TO PARAGRAPH ONE OF SUBDIVISION (A) OR  SUBDIVI-
 SION  (B)  OF SECTION TWO HUNDRED SEVENTY-SIX OF THIS ARTICLE OF OR FROM
 THE ASSET TRANSFERRED OR ITS PROCEEDS, BY LEVY OR OTHERWISE,  IS  AVAIL-

 A. 5622                             7
 
 ABLE  ONLY  AGAINST  A  PERSON  DESCRIBED IN SUBPARAGRAPH (I) OR (II) OF
 PARAGRAPH ONE OF THIS SUBDIVISION.
   (C)  IF  THE  JUDGMENT  UNDER SUBDIVISION (B) OF THIS SECTION IS BASED
 UPON THE VALUE OF THE ASSET TRANSFERRED, THE JUDGMENT  MUST  BE  FOR  AN
 AMOUNT  EQUAL  TO  THE  VALUE  OF THE ASSET AT THE TIME OF THE TRANSFER,
 SUBJECT TO ADJUSTMENT AS THE EQUITIES MAY REQUIRE.
   (D) NOTWITHSTANDING VOIDABILITY OF A TRANSFER OR AN  OBLIGATION  UNDER
 THIS  ARTICLE,  A  GOOD-FAITH  TRANSFEREE OR OBLIGEE IS ENTITLED, TO THE
 EXTENT OF THE VALUE GIVEN THE DEBTOR FOR THE TRANSFER OR OBLIGATION, TO:
   (1) A LIEN ON OR A RIGHT TO RETAIN AN INTEREST  IN  THE  ASSET  TRANS-
 FERRED;
   (2) ENFORCEMENT OF AN OBLIGATION INCURRED; OR
   (3) A REDUCTION IN THE AMOUNT OF THE LIABILITY ON THE JUDGMENT.
   (E)  A TRANSFER IS NOT VOIDABLE UNDER PARAGRAPH TWO OF SUBDIVISION (A)
 OF SECTION TWO HUNDRED SEVENTY-THREE OR SECTION TWO HUNDRED SEVENTY-FOUR
 OF THIS ARTICLE IF THE TRANSFER RESULTS FROM:
   (1) TERMINATION OF A LEASE UPON DEFAULT BY THE DEBTOR WHEN THE  TERMI-
 NATION IS PURSUANT TO THE LEASE AND APPLICABLE LAW; OR
   (2) ENFORCEMENT OF A SECURITY INTEREST IN COMPLIANCE WITH ARTICLE NINE
 OF  THE  UNIFORM COMMERCIAL CODE, OTHER THAN ACCEPTANCE OF COLLATERAL IN
 FULL OR PARTIAL SATISFACTION OF THE OBLIGATION IT SECURES.
   (F) A TRANSFER IS NOT VOIDABLE UNDER SUBDIVISION (B)  OF  SECTION  TWO
 HUNDRED SEVENTY-FOUR OF THIS ARTICLE:
   (1)  TO THE EXTENT THE INSIDER GAVE NEW VALUE TO OR FOR THE BENEFIT OF
 THE DEBTOR AFTER THE TRANSFER WAS MADE, EXCEPT TO  THE  EXTENT  THE  NEW
 VALUE WAS SECURED BY A VALID LIEN;
   (2) IF MADE IN THE ORDINARY COURSE OF BUSINESS OR FINANCIAL AFFAIRS OF
 THE DEBTOR AND THE INSIDER; OR
   (3) IF MADE PURSUANT TO A GOOD-FAITH EFFORT TO REHABILITATE THE DEBTOR
 AND THE TRANSFER SECURED PRESENT VALUE GIVEN FOR THAT PURPOSE AS WELL AS
 AN ANTECEDENT DEBT OF THE DEBTOR.
   (G)  THE  FOLLOWING  RULES  DETERMINE  THE  BURDEN  OF PROVING MATTERS
 REFERRED TO IN THIS SECTION:
   (1) A PARTY THAT SEEKS TO INVOKE SUBDIVISION (A), (D), (E) OR  (F)  OF
 THIS  SECTION HAS THE BURDEN OF PROVING THE APPLICABILITY OF THAT SUBDI-
 VISION.
   (2) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPHS THREE AND FOUR OF  THIS
 SUBDIVISION,  THE  CREDITOR  HAS  THE  BURDEN OF PROVING EACH APPLICABLE
 ELEMENT OF SUBDIVISION (B) OR (C) OF THIS SECTION.
   (3) THE TRANSFEREE HAS THE BURDEN OF PROVING THE APPLICABILITY TO  THE
 TRANSFEREE OF CLAUSE (A) OR (B) OF SUBPARAGRAPH (II) OF PARAGRAPH ONE OF
 SUBDIVISION (B) OF THIS SECTION.
   (4)  A  PARTY  THAT  SEEKS  ADJUSTMENT  UNDER  SUBDIVISION (C) OF THIS
 SECTION HAS THE BURDEN OF PROVING THE ADJUSTMENT.
   (H) THE STANDARD OF PROOF REQUIRED TO ESTABLISH MATTERS REFERRED TO IN
 THIS SECTION IS PREPONDERANCE OF THE EVIDENCE.
   § 278. EXTINGUISHMENT OF CLAIM FOR RELIEF. A  CLAIM  FOR  RELIEF  WITH
 RESPECT  TO  A TRANSFER OR OBLIGATION UNDER THIS ARTICLE IS EXTINGUISHED
 UNLESS ACTION IS BROUGHT:
   (A) UNDER PARAGRAPH ONE OF SUBDIVISION  (A)  OF  SECTION  TWO  HUNDRED
 SEVENTY-THREE  OF  THIS  ARTICLE,  NOT  LATER  THAN FOUR YEARS AFTER THE
 TRANSFER WAS MADE OR THE OBLIGATION WAS INCURRED OR, IF LATER, NOT LATER
 THAN ONE YEAR AFTER THE TRANSFER OR OBLIGATION WAS OR  COULD  REASONABLY
 HAVE BEEN DISCOVERED BY THE CLAIMANT;
   (B)  UNDER  PARAGRAPH  TWO  OF  SUBDIVISION (A) OF SECTION TWO HUNDRED
 SEVENTY-THREE OR SUBDIVISION (A) OF SECTION TWO HUNDRED SEVENTY-FOUR  OF

 A. 5622                             8
 
 THIS  ARTICLE,  NOT LATER THAN FOUR YEARS AFTER THE TRANSFER WAS MADE OR
 THE OBLIGATION WAS INCURRED; OR
   (C)  UNDER SUBDIVISION (B) OF SECTION TWO HUNDRED SEVENTY-FOUR OF THIS
 ARTICLE, NOT LATER THAN ONE YEAR AFTER THE TRANSFER WAS MADE.
   § 279. GOVERNING LAW.  (A) IN THIS SECTION, THE FOLLOWING RULES DETER-
 MINE A DEBTOR'S LOCATION:
   (1) A DEBTOR WHO IS AN INDIVIDUAL IS LOCATED AT THE INDIVIDUAL'S PRIN-
 CIPAL RESIDENCE.
   (2) A DEBTOR THAT IS AN ORGANIZATION AND HAS ONLY ONE PLACE  OF  BUSI-
 NESS IS LOCATED AT ITS PLACE OF BUSINESS.
   (3)  A  DEBTOR  THAT IS AN ORGANIZATION AND HAS MORE THAN ONE PLACE OF
 BUSINESS IS LOCATED AT ITS CHIEF EXECUTIVE OFFICE.
   (B) A CLAIM FOR RELIEF IN THE NATURE OF A CLAIM FOR RELIEF UNDER  THIS
 ARTICLE  IS  GOVERNED  BY THE LOCAL LAW OF THE JURISDICTION IN WHICH THE
 DEBTOR IS LOCATED WHEN  THE  TRANSFER  IS  MADE  OR  THE  OBLIGATION  IS
 INCURRED.
   § 280. SUPPLEMENTARY PROVISIONS. UNLESS DISPLACED BY THE PROVISIONS OF
 THIS  ARTICLE,  THE  PRINCIPLES  OF  LAW  AND  EQUITY, INCLUDING THE LAW
 MERCHANT AND THE LAW RELATING TO PRINCIPAL AND AGENT, ESTOPPEL,  LACHES,
 FRAUD,  MISREPRESENTATION,  DURESS,  COERCION,  MISTAKE,  INSOLVENCY, OR
 OTHER VALIDATING OR INVALIDATING CAUSE, SUPPLEMENT ITS PROVISIONS.
   § 281. UNIFORMITY OF APPLICATION AND CONSTRUCTION. THIS ARTICLE  SHALL
 BE  APPLIED  AND  CONSTRUED  TO  EFFECTUATE  ITS GENERAL PURPOSE TO MAKE
 UNIFORM THE LAW WITH RESPECT TO THE SUBJECT OF THIS ARTICLE AMONG STATES
 ENACTING IT.
   § 281-A. RELATION TO ELECTRONIC  SIGNATURES  IN  GLOBAL  AND  NATIONAL
 COMMERCE ACT. THIS ARTICLE MODIFIES, LIMITS, OR SUPERSEDES THE ELECTRON-
 IC  SIGNATURES  IN  GLOBAL  AND NATIONAL COMMERCE ACT, 15 U.S.C. SECTION
 7001 ET SEQ., BUT DOES NOT MODIFY, LIMIT, OR SUPERSEDE SECTION 101(C) OF
 THAT ACT, 15 U.S.C. SECTION 7001(C), OR AUTHORIZE ELECTRONIC DELIVERY OF
 ANY OF THE NOTICES DESCRIBED IN SECTION 103(B) OF THAT  ACT,  15  U.S.C.
 SECTION 7003(B).
   § 3. Paragraph 5 of subdivision (c) of section 5205 of the civil prac-
 tice  law  and  rules,  as amended by chapter 93 of the laws of 1995, is
 amended to read as follows:
   5. Additions to an asset described in paragraph two of  this  subdivi-
 sion shall not be exempt from application to the satisfaction of a money
 judgment  if  (i)  made  after  the  date that is ninety days before the
 interposition of the claim on which such judgment was entered,  or  (ii)
 deemed  to be [fraudulent conveyances] VOIDABLE TRANSACTIONS under arti-
 cle ten of the debtor and creditor law.
   § 4. Subdivision (g) of section 5519 of the  civil  practice  law  and
 rules,  as  added by chapter 184 of the laws of 1988, is amended to read
 as follows:
   (g) Appeals in medical, dental or podiatric malpractice judgments.  In
 an  action for medical, dental or podiatric malpractice, if an appeal is
 taken from a judgment in excess of one million dollars and an  undertak-
 ing  in  the  amount  of  one  million dollars or the limit of insurance
 coverage available to the appellant for  the  occurrence,  whichever  is
 greater, is given together with a joint undertaking by the appellant and
 any  insurer  of the appellant's professional liability that, during the
 period of such stay, the appellant will make no  [fraudulent  conveyance
 without   fair  consideration]  VOIDABLE  TRANSACTION  as  described  in
 [section two hundred seventy-three-a] ARTICLE  TEN  of  the  debtor  and
 creditor  law, the court to which such an appeal is taken shall stay all
 proceedings to enforce the judgment pending such appeal if it finds that

 A. 5622                             9
 
 there is a reasonable probability that the judgment may be  reversed  or
 determined  excessive. In making a determination under this subdivision,
 the court shall not consider the availability  of  a  stay  pursuant  to
 subdivision  (a)  or  (b)  of  this  section. Liability under such joint
 undertaking shall be limited to [fraudulent conveyances] VOIDABLE TRANS-
 ACTIONS made by the appellant subsequent to the execution of such under-
 taking and during the period of such  stay,  but  nothing  herein  shall
 limit the liability of the appellant for [fraudulent conveyances] VOIDA-
 BLE  TRANSACTIONS pursuant to article ten of the debtor and creditor law
 or any other law. An insurer that pays money to a beneficiary of such  a
 joint  undertaking  shall  thereupon be subrogated, to the extent of the
 amount to be paid, to the rights and interests of such beneficiary, as a
 judgment creditor, against the  appellant  on  whose  behalf  the  joint
 undertaking was executed.
   §  5. Subparagraph 4 of paragraph (b) of section 7-3.1 of the estates,
 powers and trusts law, as amended by chapter 206 of the laws of 1998, is
 amended to read as follows:
   (4) Additions to an asset described in subparagraph one of this  para-
 graph  shall  not  be  exempt  from application to the satisfaction of a
 money judgment if (i) made after the date that is ninety days before the
 interposition of the claim on which such judgment was entered,  or  (ii)
 deemed  to be [fraudulent conveyances] VOIDABLE TRANSACTIONS under arti-
 cle ten of the debtor and creditor law.
   § 6. Paragraph 3 of subdivision 3-a of  section  50  of  the  workers'
 compensation  law,  as  amended  by  chapter 139 of the laws of 2008, is
 amended to read as follows:
   (3) A member's participation in a group self-insurer shall not relieve
 it of its liability for compensation prescribed by this  chapter  except
 by  the  payment  thereof  by  the group self-insurer or by itself. Each
 member shall be responsible, jointly and severally, for all  liabilities
 of  the group self-insurer provided for by this chapter occurring during
 its respective period of membership, and such liability shall attach  to
 any recipient of a conveyance of assets made in violation of SUBDIVISION
 (A)  OF  section  two hundred [seventy-three] SEVENTY-FOUR of the debtor
 and creditor law. As between the employee and  the  group  self-insurer,
 notice  to  or  knowledge of the occurrence of the injury on the part of
 the member shall be deemed notice or knowledge, as the case may  be,  on
 the  part  of  the group self-insurer; jurisdiction of the member shall,
 for the purpose of this chapter, be jurisdiction of the  group  self-in-
 surer  and  such  group self-insurer shall in all things be bound by and
 subject to the orders, findings, decisions or  awards  rendered  against
 the  participating  member  for  the  payment  of compensation under the
 provisions of this chapter.  The insolvency or bankruptcy of  a  partic-
 ipating member shall not relieve the group self-insurer from the payment
 of  compensation  for  injuries or death sustained by an employee during
 the time the member was a participant in such group self-insurer. Notice
 of termination of a participating member shall not be effective until at
 least ten days after notice of such termination, on a  prescribed  form,
 has been either filed in the office of the chair or sent by certified or
 registered  letter,  return  receipt  requested, and also served in like
 manner upon the member. In the  event  such  termination  is  due  to  a
 member's  failure  to  pay  required contributions, such member's termi-
 nation shall not be rescinded more than three times.
   § 7. This act shall take effect one hundred twenty days after it shall
 have become a law, and shall apply to  a  transfer  made  or  obligation
 incurred  on  or  after  such  effective  date, but shall not apply to a

 A. 5622                            10
 
 transfer made or obligation incurred before  such  effective  date,  nor
 shall  it apply to a right of action that has accrued before such effec-
 tive date. For the purposes of this act, a transfer is made and an obli-
 gation is incurred at the time provided in section 275 of the debtor and
 creditor law, as added by section two of this act.