1696

ARTICLE 39B

ARTICLE 39B.

FRAUDULENT CONVEYANCES.¹

	1. Definition of terms.	8. Conveyances of partnership property.
	2. Insolvency.	9. Rights of creditors whose claims have
	3. Fair consideration.	matured.
	4. Conveyances by insolvent.	10. Rights of creditors whose claims have
	5. Conveyances -by persons in business.	not matured.
	6. Conveyances by persons about to incur	11. Cases not provided for in act.
	debts.	12. Construction.
	7. Conveyances made with intent to de-	13. Name of act.
	fraud.	14. Inconsistent legislation repealed.

An. Code, 1924, sec. 1. 1920, ch. 395, sec. 1.

1. (Definition of Terms.) In this Article "Assets" of a debtor means
property not exempt from liability for his debts. To the extent that any
property is liable for any debts of the debtor, such property shall be in-
cluded in his assets.

"Conveyance" includes every payment of money, assignment, release,
transfer, lease, mortgage or pledge of tangible or intangible property, and
also the creation of any lien or incumbrance.

"Creditor" is a person having any claim, whether matured or unma-
tured, liquidated or unliquidated, absolute, fixed or contingent.

"Debt" includes any legal liability, whether matured or unmatured,
liquidated or unliquidated, absolute, fixed or contingent.

Where parent company transferred all assets of subsidiary, over which it had com-
plete control, plaintiff in patent infringement suit had right to proceed against parent
company for enforcement of remedies afforded. Acme Card System Co. v. Remington
Rand B. Service, 21 F. Supp. 742.

Decree for alimony is debt and conveyance by husband to prevent wife from obtaining
alimony is fraudulent and may be set aside unless purchaser took in good faith, without
notice, and for value. Levin v. Levin, 166 Md. 453.

This Article cited but not construed in Coffman v. Publishing Co., 167 Md. 288.
This Article cited in Bryan v. Wilson, 171 Md. 424.

An. Code, 1924, sec. 2. 1920, ch. 395, sec. 2.

2. (Insolvency.) (1) A person is insolvent when the present fair sal-
able value of his assets is less than the amount that will be required to pay
his probable liability on his existing debts as they become absolute and
matured.

(2) In determining whether a partnership is insolvent there shall be
added to the partnership property the present fair salable value of the
separate assets of each general partner in excess of the amount probably
sufficient to meet the claims of his separate creditors, and also the amount
of any unpaid subscription to the partnership of each limited partner, pro-
vided the present fair salable value of the assets of such limited partner
is probably sufficient to pay his debts, including such unpaid subscription.

Neither insolvency nor fraud made out. Bank v. Thomas, 151 Md. 252.

¹ As to sales in bulk, see art. 83, sec. 97, et seq.

As to insolvents, see art. 47.

As to conveyances from husband to wife, see art. 45, secs. 1 and 2.

As to fraud, as a crime, see art. 27, sec. 166, et seq.