SB252 Alabama 2017 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2017

Title

Alabama Uniform Voidable Transfers Act, adopted, creditors, procedures to reach assets transferred to prevent seizure established, Secs. 8-9B-1 to 8-9B-17, inclusive, added

Summary

The bill adopts the Alabama Uniform Voidable Transactions Act to replace the Uniform Fraudulent Transfers Act for transfers after January 1, 2018, updating how creditors can reach assets transferred to satisfy debts.

What This Bill Does

It replaces the existing fraudulent transfer framework with a new law that governs when a debtor's transfers can be voided to help creditors. It defines key terms and sets out when a transfer is voidable for present or future creditors, including cases involving actual intent to hinder creditors or transfers lacking reasonably equivalent value while insolvency exists. It provides remedies for creditors, such as avoiding the transfer, attaching transferred assets, and seeking injunctions or receivers to protect assets. It confirms the new act applies to transfers after January 1, 2018, while transfers before that date remain governed by the old act, and chambers with cross-referencing to its effective date.

Who It Affects

• Debtors: face potential voiding of transfers made to hinder creditors or that were not accompanied by reasonably equivalent value, with insolvency considerations influencing outcomes.
• Creditors: gain updated tools to reach and recover value from transferred assets, including avoidance, attachments, injunctions, and receiverships, subject to proof and defenses.

Key Provisions

• Adopts the Alabama Uniform Voidable Transactions Act to replace the Uniform Fraudulent Transfers Act for transfers occurring after January 1, 2018.
• Defines key terms such as debtor, creditor, transfer, asset, insider, and voidable transfers to govern how the act operates.
• Establishes when a transfer is voidable for present or future creditors, including actual intent to hinder or defraud and transfers lacking reasonably equivalent value while insolvency concerns exist, with factors to consider for intent.
• Provides creditor remedies such as avoidance of the transfer, attachments, injunctions, and appointment of receivers, and explains defenses and protections for transferees acting in good faith.
• Sets time limits for bringing claims depending on the type of transfer and creditor, and specifies governing law and applicable rules for series organizations.
• Specifies that the act applies to transfers after January 1, 2018, and that the Alabama Uniform Fraudulent Transfer Act remains in effect for transfers made before that date.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Property, Real and Personal