SB152 Alabama 2018 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2018

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

SB 152 adopts the Uniform Voidable Transactions Act to replace the Uniform Fraudulent Transfers Act for transfers after January 1, 2019, changing how creditors can reach transferred assets.

What This Bill Does

It creates a new set of rules (Chapter 9B) to determine when a debtor's transfers can be voided to pay creditors. It defines key terms like debtor, creditor, transfer, asset, insider, and series organization to apply the rules. It allows creditors to void a transfer or recover value if the transfer was meant to hinder creditors or lacked reasonably equivalent value, with remedies such as attachments, injunctions, or receiverships. The act applies to transfers after January 1, 2019, while transfers before that date remain under the old Uniform Fraudulent Transfers Act.

Who It Affects

• Debtors (individuals and organizations) – transfers of assets can be challenged and voided if made to hinder creditors or without reasonable value, especially if insolvency is involved.
• Creditors (and buyers of assets in good faith) – gain updated tools to reach or recover transferred assets, including attachment, injunctions, and possible recovery of value, with protections for good faith transferees.

Key Provisions

• Adopts the Alabama Uniform Voidable Transactions Act to replace the Uniform Fraudulent Transfers Act for post January 1, 2019 transactions.
• Defines key terms including debtor, creditor, transfer, asset, insider, affiliate, lien, and series organization.
• Transfers can be voidable as to present or future creditors if made to hinder, delay, or defraud creditors or if the debtor did not receive reasonably equivalent value and was insolvent or believed insolvency was likely.
• Creditors may seek avoidance of the transfer, attachments, injunctions, and other relief, with possible recovery of value from transferees.
• Defenses and protections for transferees include good faith purchase for value, new value by insiders, ordinary course transactions, and certain foreclosure or security interest scenarios.
• Governing law and series organization provisions address where the debtor is located and how relief is applied to series structures.
• The act governs transfers made after January 1, 2019; it does not apply to transfers before that date, which stay under the old act.
• Effective date is January 1, 2019.
• Relates to procedural and substantive aspects like time limits for bringing actions and remedies available to creditors.

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