(a) A transfer made or obligation incurred by a debtor is voidable as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation:
(1) with actual intent to hinder, delay, or defraud any creditor of the debtor; or
(2) without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:
(i) was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or
(ii) intended to incur, or believed or reasonably should have believed that the debtor would incur, debts beyond the debtor's ability to pay as they became due.
(b) In determining actual intent under paragraph (a), clause (1), consideration may be given, among other factors, to whether:
(1) the transfer or obligation was to an insider;
(2) the debtor retained possession or control of the property transferred after the transfer;
(3) the transfer or obligation was disclosed or concealed;
(4) before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit;
(5) the transfer was of substantially all the debtor's assets;
(6) the debtor absconded;
(7) the debtor removed or concealed assets;
(8) the value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred;
(9) the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;
(10) the transfer occurred shortly before or shortly after a substantial debt was incurred; and
(11) the debtor transferred the essential assets of the business to a lienor that transferred the assets to an insider of the debtor.
(c) A creditor making a claim under paragraph (a) has the burden of proving the elements of the claim by a preponderance of the evidence.
History: 1986 c 444; 1987 c 19 s 4; 2015 c 17 s 4
NOTE: This section was found preempted by the federal Employee Retirement Income Security Act (ERISA) as applied to withdrawal liability from multiemployer ERISA plans in Central States, Southeast and Southwest Areas Pension Fund v. Marquette Bank, Minneapolis, N.A., 836 F.Supp. 673 (D. Minn. 1993).
NOTE: This section was found preempted by the federal Railway Labor Act as applied to claims requiring interpretation of railroad collective bargaining agreements and by the federal Interstate Commerce Act in Deford v. Soo Line Railroad Co., 867 F.2d 1080 (8th Cir. 1989).
Structure Minnesota Statutes
Chapters 500 - 515B — Property And Property Interests
Chapter 513 — Agreements Relating To Property
Section 513.01 — No Action On Agreement.
Section 513.03 — Grants Of Trust, When Void.
Section 513.04 — Conveyance Of Interest In Land Except Up To One-year Lease.
Section 513.05 — Leases; Contracts For Sale Of Lands.
Section 513.06 — Specific Performance.
Section 513.07 — Logs; Extension Of Time Of Payment For Labor.
Section 513.075 — Cohabitation; Property And Financial Agreements.
Section 513.076 — Necessity Of Contract.
Section 513.08 — Void When Made To Defraud, Exception.
Section 513.09 — Provision To Revoke, Determine, Or Alter; When Void.
Section 513.10 — Power Of Revocation, When Valid.
Section 513.11 — Premature Conveyance.
Section 513.33 — Credit Agreements.
Section 513.44 — Transfer Or Obligation Voidable As To Present Or Future Creditor.
Section 513.45 — Transfer Or Obligation Voidable As To Present Creditor.
Section 513.46 — When Transfer Is Made Or Obligation Is Incurred.
Section 513.47 — Remedies Of Creditor.
Section 513.48 — Defenses, Liability, And Protection Of Transferee Or Obligee.
Section 513.485 — Governing Law.
Section 513.49 — Application To Series Organization.
Section 513.495 — Relation To Electronic Signatures In Global And National Commerce Act.
Section 513.50 — Supplementary Provisions.
Section 513.53 — Applicability.
Section 513.55 — General Disclosure Requirements.
Section 513.56 — Disclosure Not Required.
Section 513.57 — Liability For Error, Inaccuracy, Or Omission.
Section 513.58 — Amendment To Disclosure.
Section 513.59 — Transfer Not Invalidated.
Section 513.61 — Radon Disclosure Requirements.
Section 513.75 — Liability For Violation.
Section 513.76 — Notice Requirements For Existing Transfer Fee Obligations.