On July 16, 2014, the Uniform Law Commission adopted the Uniform Voidable Transactions Act of 2014 (the “UVTA”), which is designed to replace the Uniform Fraudulent Transfers Act (the “Act”), a uniform body of “fraudulent transfer law” available for revision and enactment on a state-by-state basis.

The substantive revisions made by the UTVA to the Act are important but relatively few.  Among the more relevant revisions are: (i) a change in the title and body of the Act from “fraudulent” to “voidable;” (ii) a change in the title and body of the Act from “transfers” to “transactions;” and (iii) a change of the term “fraudulent” in the body of the Act to “voidable.”  The UTVA thus recognizes the substantive legal differences between a fraud on the one hand, and a fraudulent transfer on the other hand.

These wording changes are key and will hopefully serve to clarify that the purpose of the Act is remedial in nature, to provide a remedy for claimants and creditors prejudiced by a “voidable transaction,” as opposed to providing a basis for a fraud claim against a debtor/transferor. 

-Barry Engel