Uniform Voidable Transactions Act Comes to Alabama
Alabama has joined approximately 17 other states in adopting the Uniform Voidable Transactions Act (the “VTA”) to replace the Uniform Fraudulent Transfer Act (the “FTA”). The VTA will govern transactions occurring on or after January 1, 2019. The VTA clarifies issues that had become points of contention in avoidance actions under the FTA. For example, the new law makes clear that a finding of fraud (as that term is used in common law) is not a prerequisite to avoiding a transfer. The VTA also includes a choice of law provision to help minimize the confusion over which state’s avoidance laws govern a transaction that crossed multiple state lines. The VTA also seeks to modernize avoidance law in part by addressing series limited liability companies.
For a more information regarding the VTA, click here.