Tuesday, November 5, 2019

The Kentucky Uniform Voidable Transactions Act


The Kentucky Uniform Voidable Transactions Act

In recent decision from the Kentucky Court of Appeals, it discussed the application of Kentucky’s former law with respect to fraudulent conveyances and the adoption, effective January 1, 2016, of the Uniform Voidable Transactions Act, which has now been codified at KRS ch. 378A. Orchard v. Western Energy Production, LP, No. 2019-CA-000066-MR, 2019 WL 5293489 (Ky. App. Oct. 18, 2019).

With respect to the application of fraudulent conveyance law, the transfers at issue took place on August 25, 2015. Obviously that date predates the effective date of the Kentucky Uniform Voidable Transactions Act.. Relying in part upon in re Licking River Mining, LLC v. Monday Coal, LLC, 571 B.R. 241, 245 N.3 (Bankr. E.D. Ky. 2017), it was held that the former fraudulent conveyance law, and specifically KRS § 378.010, would apply to the allegedly improper transactions.

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