This bill adopts the ULC's 2014 modifications to the uniform act, including the
following:
1. The bill renames the provisions of the act to be the Uniform Voidable
Transactions Law and replaces the term “fraudulent” with “voidable” in various
provisions. The ULC specified that these changes were not intended to have
substantive effect and were made to more accurately convey the effect of current law,
which frequently uses the term “fraudulent” but does not actually require fraudulent
activity as a condition to its application.
2. The bill creates provisions that specify, for claims and defenses related to
voidable transactions, which party has the burden of proof and establishes the
standard of proof as a preponderance of the evidence.
3. The bill creates a choice-of-law rule for courts to determine which state's
voidable transactions law applies in a given case. Under the bill, a court must apply
the law of the state where the debtor is located at the time the transfer is made or
obligation incurred.

4. The bill eliminates a provision that applies a different standard for
determining insolvency for a partnership, so that the general insolvency standard
applies to partnerships.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB719,1 1Section 1. Chapter 242 (title) of the statutes is amended to read:
AB719,3,42 CHAPTER 242
3 UNIFORM FRAUDULENT TRANSFER ACT voidable transactions
4law
AB719,2 5Section 2. 242.01 (3) of the statutes is amended to read:
AB719,3,96 242.01 (3) “Claim," except as used in “claim for relief,” means a right to
7payment, whether or not the right is reduced to judgment, liquidated, unliquidated,
8fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable,
9secured or unsecured.
AB719,3 10Section 3. 242.01 (6m) of the statutes is created to read:
AB719,3,1211 242.01 (6m) “Electronic" means relating to technology having electrical,
12digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.
AB719,4 13Section 4. 242.01 (8m) of the statutes is created to read:
AB719,3,1414 242.01 (8m) “Organization” means a person other than an individual.
AB719,5 15Section 5. 242.01 (9) of the statutes is amended to read:
AB719,3,2016 242.01 (9) “Person" means an individual, estate, partnership, corporation,
17limited liability company, association, organization, trust, business or nonprofit
18entity, public corporation,
government or governmental subdivision or, agency,
19business trust, estate, trust or instrumentality, or any other legal or commercial
20entity.
AB719,6
1Section 6. 242.01 (10m) of the statutes is created to read:
AB719,4,42 242.01 (10m) “Record" means information that is inscribed on a tangible
3medium or that is stored in an electronic or other medium and is retrievable in
4perceivable form.
AB719,7 5Section 7. 242.01 (11m) of the statutes is created to read:
AB719,4,76 242.01 (11m) “Sign" means, with present intent to authenticate or adopt a
7record, any of the following:
AB719,4,88 (a) To execute or adopt a tangible symbol.
AB719,4,109 (b) To attach to or logically associate with the record an electronic symbol,
10sound, or process.
AB719,8 11Section 8. 242.01 (12) of the statutes is amended to read:
AB719,4,1512 242.01 (12) “Transfer" means every mode, direct or indirect, absolute or
13conditional, voluntary or involuntary, of disposing of or parting with an asset or an
14interest in an asset, and includes payment of money, release, lease , license, and
15creation of a lien or other encumbrance.
AB719,9 16Section 9. 242.02 (2) of the statutes is amended to read:
AB719,4,1817 242.02 (2) A debtor is insolvent if, at a fair valuation, the sum of the debtor's
18debts is greater than all the sum of the debtor's assets at a fair valuation.
AB719,10 19Section 10. 242.02 (3) of the statutes is amended to read:
AB719,4,2420 242.02 (3) A debtor who is generally not paying the debtor's debts as they
21become due other than as a result of a bona fide dispute is presumed to be insolvent.
22The presumption imposes on the party against which the presumption is directed the
23burden of proving that the nonexistence of insolvency is more probable than its
24existence.
AB719,11 25Section 11. 242.02 (4) of the statutes is repealed.
AB719,12
1Section 12. 242.04 (title) of the statutes is amended to read:
AB719,5,3 2242.04 (title) Transfers fraudulent Transfer or obligation voidable as
3to present
and or future creditors creditor .
AB719,13 4Section 13. 242.04 (1) (intro.) of the statutes is amended to read:
AB719,5,85 242.04 (1) (intro.) A transfer made or obligations obligation incurred by a
6debtor is fraudulent voidable as to a creditor, whether the creditor's claim arose
7before or after the transfer was made or the obligation was incurred, if the debtor
8made the transfer or incurred the obligation:
AB719,14 9Section 14. 242.04 (3) of the statutes is created to read:
AB719,5,1110 242.04 (3) A creditor making a claim for relief under sub. (1) has the burden
11of proving the elements of the claim for relief by a preponderance of the evidence.
AB719,15 12Section 15. 242.05 (title) of the statutes is amended to read:
AB719,5,14 13242.05 (title) Transfers fraudulent Transfer or obligation voidable as
14to present
creditors creditor.
AB719,16 15Section 16. 242.05 (1) of the statutes is amended to read:
AB719,5,2116 242.05 (1) A transfer made or obligation incurred by a debtor is fraudulent
17voidable as to a creditor whose claim arose before the transfer was made or the
18obligation was incurred if the debtor made the transfer or incurred the obligation
19without receiving a reasonably equivalent value in exchange for the transfer or
20obligation and the debtor was insolvent at that time or the debtor became insolvent
21as a result of the transfer or obligation.
AB719,17 22Section 17. 242.05 (2) of the statutes is amended to read:
AB719,6,223 242.05 (2) A transfer made by a debtor is fraudulent voidable as to a creditor
24whose claim arose before the transfer was made if the transfer was made to an

1insider for an antecedent debt, the debtor was insolvent at that time and the insider
2had reasonable cause to believe that the debtor was insolvent.
AB719,18 3Section 18. 242.05 (3) of the statutes is created to read:
AB719,6,64 242.05 (3) Subject to s. 242.02 (3), a creditor making a claim for relief under
5sub. (1) or (2) has the burden of proving the elements of the claim for relief by a
6preponderance of the evidence.
AB719,19 7Section 19. 242.06 (5) (b) of the statutes is amended to read:
AB719,6,98 242.06 (5) (b) If evidenced by a writing record, when the writing executed
9record signed by the obligor is delivered to or for the benefit of the obligee.
AB719,20 10Section 20. 242.07 (1) (b) of the statutes is amended to read:
AB719,6,1311 242.07 (1) (b) An attachment or other provisional remedy against the asset
12transferred or other property of the transferee in accordance with if available under
13chs. 810 to 813 or other applicable law.
AB719,21 14Section 21. 242.08 (title) of the statutes is amended to read:
AB719,6,15 15242.08 (title) Defenses, liability , and protection of transferee or obligee .
AB719,22 16Section 22. 242.08 (1) of the statutes is amended to read:
AB719,6,1917 242.08 (1) A transfer or obligation is not voidable under s. 242.04 (1) (a) against
18a person who took in good faith and for a reasonably equivalent value given the
19debtor
or against any subsequent transferee or obligee.
AB719,23 20Section 23. 242.08 (2) (intro.) of the statutes is amended to read:
AB719,6,2321 242.08 (2) (intro.) Except as otherwise provided in this section, to To the extent
22a transfer is voidable in an action by a creditor under s. 242.07 (1) (a), all of the
23following rules apply:
AB719,7,2 24(am) Except as otherwise provided in this section, the creditor may recover
25judgment for the value of the asset transferred, as adjusted under sub. (3), or the

1amount necessary to satisfy the creditor's claim, whichever is less. The judgment
2may be entered against any of the following:
AB719,24 3Section 24. 242.08 (2) (a) of the statutes is renumbered 242.08 (2) (am) 1.
AB719,25 4Section 25. 242.08 (2) (am) 2. b. and (bm) of the statutes are created to read:
AB719,7,65 242.08 (2) (am) 2. b. An immediate or mediate good faith transferee of a person
6described in subd. 2. a.
AB719,7,97 (bm) Recovery pursuant to s. 242.07 (1) (a) or (2) of or from the asset transferred
8or its proceeds, by levy or otherwise, is available only against a person described in
9par. (am) 1. or 2.
AB719,26 10Section 26. 242.08 (2) (b) of the statutes is renumbered 242.08 (2) (am) 2. and
11amended to read:
AB719,7,1312 242.08 (2) (am) 2. Any subsequent An immediate or mediate transferee of the
13first transferee,
other than a any of the following:
AB719,7,14 14a. A good faith transferee who took for value or from any subsequent transferee.
AB719,27 15Section 27. 242.08 (5) (b) of the statutes is amended to read:
AB719,7,1816 242.08 (5) (b) Enforcement of a security interest in compliance with ch. 409,
17other than acceptance of collateral in full or partial satisfaction of the obligation it
18secures
.
AB719,28 19Section 28. 242.08 (7) and (8) of the statutes are created to read:
AB719,7,2120 242.08 (7) The following rules determine the burden of proving matters
21referred to in this section:
AB719,7,2322 (a) A party that seeks to invoke sub. (1), (4), (5), or (6) has the burden of proving
23the applicability of that subsection.
AB719,7,2524 (b) Except as otherwise provided in pars. (c) and (d), the creditor has the burden
25of proving each applicable element of sub. (2) or (3).
AB719,8,2
1(c) The transferee has the burden of proving the applicability to the transferee
2of sub. (2) (am) 2. a. or b.
AB719,8,43 (d) A party that seeks adjustment under sub. (3) has the burden of proving the
4adjustment.
AB719,8,6 5(8) The standard of proof required to establish matters referred to in this
6section is preponderance of the evidence.
AB719,29 7Section 29. 242.094 of the statutes is created to read:
AB719,8,9 8242.094 Governing law. (1) In this section, the following rules determine a
9debtor's location:
AB719,8,1110 (a) A debtor who is an individual is located at the individual's principal
11residence.
AB719,8,1312 (b) A debtor that is an organization and has only one place of business is located
13at its place of business.
AB719,8,1514 (c) A debtor that is an organization and that has more than one place of
15business is located at its chief executive office.
AB719,8,18 16(2) A claim for relief in the nature of a claim for relief under this chapter is
17governed by the local law of the jurisdiction in which the debtor is located when the
18transfer is made or the obligation is incurred.
AB719,30 19Section 30. 242.096 of the statutes is created to read:
AB719,8,20 20242.096 Application to series organization. (1) In this section:
AB719,8,2321 (a) “Protected series” means an arrangement, however denominated, created
22by a series organization that, pursuant to the law under which the series
23organization is organized, has the characteristics set forth in par. (b).
AB719,8,2524 (b) “Series organization” means an organization that, pursuant to the law
25under which it is organized, has the following characteristics:
AB719,9,4
11. The organic record of the organization provides for creation by the
2organization of one or more protected series, however denominated, with respect to
3specified property of the organization, and for records to be maintained for each
4protected series that identify the property of or associated with the protected series.
AB719,9,85 2. Debt incurred or existing with respect to the activities of, or property of or
6associated with, a particular protected series is enforceable against the property of
7or associated with the protected series only, and not against the property of or
8associated with the organization or other protected series of the organization.
AB719,9,119 3. Debt incurred or existing with respect to the activities or property of the
10organization is enforceable against the property of the organization only, and not
11against the property of or associated with a protected series of the organization.
AB719,9,15 12(2) A series organization and each protected series of the organization is a
13separate person for purposes of this chapter, even if for other purposes a protected
14series is not a person separate from the organization or other protected series of the
15organization.
AB719,31 16Section 31. 242.12 of the statutes is created to read:
AB719,9,22 17242.12 Relation to electronic signatures in global and national
18commerce act.
This chapter modifies, limits, or supersedes the federal Electronic
19Signatures in Global and National Commerce Act, 15 USC 7001 to 7031, but does not
20modify, limit, or supersede section 101 (c) of that act, 15 USC 7001 (c), or authorize
21electronic delivery of any of the notices described in section 103 (b) of that act, 15 USC
227003
(b).
AB719,32 23Section 32. 242.13 of the statutes is created to read:
AB719,9,25 24242.13 Short title. This chapter may be cited as the Uniform Voidable
25Transactions Law.
Loading...
Loading...