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Simple English definitions for legal terms
Uniform Fraudulent Transfer Act
Read a random definition: Fraudulent Transfer Act
A quick definition of Uniform Fraudulent Transfer Act:
The Uniform Fraudulent Transfer Act is a set of rules that all states can follow to make sure that people can't cheat others by transferring their money or property in a sneaky way. It was made in 1984 to replace an older set of rules called the Uniform Fraudulent Conveyances Act. We use the abbreviation UFTA to talk about it.
A more thorough explanation:
The Uniform Fraudulent Transfer Act (UFTA) is a model act that aims to bring consistency among the states in defining and penalizing fraudulent transfers. It was adopted in 1984 to replace the Uniform Fraudulent Conveyances Act.
For example, if a person transfers their assets to a family member or friend to avoid paying their debts, it could be considered a fraudulent transfer under the UFTA. The act allows creditors to recover the assets that were fraudulently transferred.
The UFTA helps prevent individuals from hiding their assets to avoid paying their debts. It also ensures that creditors are able to recover what they are owed.
Uniform Fraudulent Conveyances Act | Uniform Gifts to Minors Act