2023 WISCONSIN ACT 246
An Act to repeal 242.02 (4); to renumber 242.08 (2) (a); to renumber and amend 242.08 (2) (b); to amend chapter 242 (title), 242.01 (3), 242.01 (9), 242.01 (12), 242.02 (2), 242.02 (3), 242.04 (title), 242.04 (1) (intro.), 242.05 (title), 242.05 (1), 242.05 (2), 242.06 (5) (b), 242.07 (1) (b), 242.08 (title), 242.08 (1), 242.08 (2) (intro.), 242.08 (5) (b), 402.402 (3) (b), 411.308 (2) (b), 705.07 (2), 815.18 (10) and 893.425; and to create 242.01 (6m), 242.01 (8m), 242.01 (10m), 242.01 (11m), 242.04 (3), 242.05 (3), 242.08 (2) (am) 2. b. and (bm), 242.08 (7) and (8), 242.094, 242.096, 242.12 and 242.13 of the statutes;
relating to: adopting modifications to, and renaming, the Uniform Fraudulent Transfer Act.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
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1. Chapter 242 (title) of the statutes is amended to read:
CHAPTER 242
UNIFORM FRAUDULENT TRANSFER ACT
voidable transactions law
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2. 242.01 (3) of the statutes is amended to read:
242.01 (3) “Claim" “
Claim,” except as used in “claim for relief,” means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured.
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3. 242.01 (6m) of the statutes is created to read:
242.01 (6m) “Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.
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4. 242.01 (8m) of the statutes is created to read:
242.01 (8m) “Organization” means a person other than an individual.
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5. 242.01 (9) of the statutes is amended to read:
242.01 (9) “Person" means an individual,
estate, partnership, corporation, limited liability company, association, organization, trust, business or nonprofit entity, public corporation, government or governmental subdivision or, agency, business trust, estate, trust or instrumentality, or any other legal or commercial entity.
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6. 242.01 (10m) of the statutes is created to read:
242.01 (10m) “Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
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7. 242.01 (11m) of the statutes is created to read:
242.01 (11m) “Sign" means, with present intent to authenticate or adopt a record, any of the following:
(a) To execute or adopt a tangible symbol.
(b) To attach to or logically associate with the record an electronic symbol, sound, or process.
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8. 242.01 (12) of the statutes is amended to read:
242.01 (12) “Transfer" means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, license, and creation of a lien or other encumbrance.
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9. 242.02 (2) of the statutes is amended to read:
242.02 (2) A debtor is insolvent if, at a fair valuation, the sum of the debtor's debts is greater than all
the sum of the debtor's assets at a fair valuation.
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10. 242.02 (3) of the statutes is amended to read:
242.02 (3) A debtor who is generally not paying
the debtor's debts as they become due other than as a result of a bona fide dispute is presumed to be insolvent. The presumption imposes on the party against which the presumption is directed the burden of proving that the nonexistence of insolvency is more probable than its existence.
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11. 242.02 (4) of the statutes is repealed.
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12. 242.04 (title) of the statutes is amended to read:
242.04 (title) Transfers fraudulent Transfer or obligation voidable as to present and or future creditors creditor.
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13. 242.04 (1) (intro.) of the statutes is amended to read:
242.04 (1) (intro.) A transfer made or obligations obligation incurred by a debtor is fraudulent 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:
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14. 242.04 (3) of the statutes is created to read:
242.04 (3) A creditor making a claim for relief under sub. (1) has the burden of proving the elements of the claim for relief by a preponderance of the evidence.
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15. 242.05 (title) of the statutes is amended to read:
242.05 (title) Transfers fraudulent Transfer or obligation voidable as to present creditors creditor.
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16. 242.05 (1) of the statutes is amended to read:
242.05 (1) A transfer made or obligation incurred by a debtor is fraudulent voidable as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation.
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17. 242.05 (2) of the statutes is amended to read:
242.05 (2) A transfer made by a debtor is fraudulent voidable as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for an antecedent debt, the debtor was insolvent at that time and the insider had reasonable cause to believe that the debtor was insolvent.
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18. 242.05 (3) of the statutes is created to read:
242.05 (3) Subject to s. 242.02 (3), a creditor making a claim for relief under sub. (1) or (2) has the burden of proving the elements of the claim for relief by a preponderance of the evidence.
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19. 242.06 (5) (b) of the statutes is amended to read:
242.06 (5) (b) If evidenced by a writing record, when the writing executed record signed by the obligor is delivered to or for the benefit of the obligee.
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20. 242.07 (1) (b) of the statutes is amended to read:
242.07 (1) (b) An attachment or other provisional remedy against the asset transferred or other property of the transferee in accordance with if available under chs. 810 to 813 or other applicable law.
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21. 242.08 (title) of the statutes is amended to read:
242.08 (title) Defenses, liability
, and protection of transferee or obligee.
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22. 242.08 (1) of the statutes is amended to read:
242.08 (1) A transfer or obligation is not voidable under s. 242.04 (1) (a) against a person who took in good faith and for a reasonably equivalent value given the debtor or against any subsequent transferee or obligee.
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23. 242.08 (2) (intro.) of the statutes is amended to read:
242.08 (2) (intro.) Except as otherwise provided in this section, to To the extent a transfer is voidable in an action by a creditor under s. 242.07 (1) (a), all of the following rules apply:
(am) Except as otherwise provided in this section, the creditor may recover judgment for the value of the asset transferred, as adjusted under sub. (3), or the amount necessary to satisfy the creditor's claim, whichever is less. The judgment may be entered against any of the following:
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24. 242.08 (2) (a) of the statutes is renumbered 242.08 (2) (am) 1.
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25. 242.08 (2) (am) 2. b. and (bm) of the statutes are created to read:
242.08 (2) (am) 2. b. An immediate or mediate good faith transferee of a person described in subd. 2. a.
(bm) Recovery pursuant to s. 242.07 (1) (a) or (2) of or from the asset transferred or its proceeds, by levy or otherwise, is available only against a person described in par. (am) 1. or 2.
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26. 242.08 (2) (b) of the statutes is renumbered 242.08 (2) (am) 2. (intro.) and amended to read:
242.08 (2) (am) 2. (intro.) Any subsequent An immediate or mediate transferee of the first transferee, other than a any of the following:
a. A good faith transferee who took for value
or from any subsequent transferee.
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27. 242.08 (5) (b) of the statutes is amended to read:
242.08 (5) (b) Enforcement of a security interest in compliance with ch. 409, other than acceptance of collateral in full or partial satisfaction of the obligation it secures.
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28. 242.08 (7) and (8) of the statutes are created to read:
242.08 (7) The following rules determine the burden of proving matters referred to in this section:
(a) A party that seeks to invoke sub. (1), (4), (5), or (6) has the burden of proving the applicability of that subsection.
(b) Except as otherwise provided in pars. (c) and (d), the creditor has the burden of proving each applicable element of sub. (2) or (3).
(c) The transferee has the burden of proving the applicability to the transferee of sub. (2) (am) 2. a. or b.
(d) A party that seeks adjustment under sub. (3) has the burden of proving the adjustment.
(8) The standard of proof required to establish matters referred to in this section is preponderance of the evidence.
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29. 242.094 of the statutes is created to read:
242.094 Governing law. (1) In this section, the following rules determine a debtor's location:
