<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 54-8A-4 - Transfers fraudulent as to present and future creditors. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072322Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072322SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072322CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072322Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072322DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072322Normal-000001 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2072322Normal-000002 { margin-top: 0; margin-bottom: 0; margin-left: 1.14in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2072322Normal-000003 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072322000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072322SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072322SCL-000005 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2072322Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=54-8A-4"><span class="s2072322SENU">54-8A-4</span></a><span xml:space="preserve" class="s2072322SENU">. </span><span class="s2072322CL">Transfers fraudulent as to present and future creditors.</span></p><p dir="ltr" class="s2072322Normal-000000"><span class="s2072322DefaultParagraphFont">(a) Any transfer made or obligation incurred by a debtor is fraudulent 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:</span></p><p dir="ltr" class="s2072322Normal-000001"><span class="s2072322DefaultParagraphFont">(1)    With actual intent to hinder, delay, or defraud any creditor of the debtor; or</span></p><p dir="ltr" class="s2072322Normal-000001"><span class="s2072322DefaultParagraphFont">(2)    Without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:</span></p><p dir="ltr" class="s2072322Normal-000002"><span class="s2072322DefaultParagraphFont">(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</span></p><p dir="ltr" class="s2072322Normal-000002"><span class="s2072322DefaultParagraphFont">(ii)    Intended to incur, or believed or reasonably should have believed that he would incur, debts beyond his ability to pay as they became due.</span></p><p dir="ltr" class="s2072322Normal-000003"><span class="s2072322DefaultParagraphFont">(b) In determining actual intent under subsection (a)(1) of this section, consideration may be given, among other factors, to whether:</span></p><p dir="ltr" class="s2072322Normal-000001"><span class="s2072322DefaultParagraphFont">(1)    The transfer or obligation was to an insider;</span></p><p dir="ltr" class="s2072322Normal-000001"><span class="s2072322DefaultParagraphFont">(2)    The debtor retained possession or control of the property transferred after the transfer;</span></p><p dir="ltr" class="s2072322Normal-000001"><span class="s2072322DefaultParagraphFont">(3)    The transfer or obligation was disclosed or concealed;</span></p><p dir="ltr" class="s2072322Normal-000001"><span class="s2072322DefaultParagraphFont">(4)    Before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit;</span></p><p dir="ltr" class="s2072322Normal-000001"><span class="s2072322DefaultParagraphFont">(5)    The transfer was of substantially all the debtor's assets;</span></p><p dir="ltr" class="s2072322Normal-000001"><span class="s2072322DefaultParagraphFont">(6)    The debtor absconded;</span></p><p dir="ltr" class="s2072322Normal-000001"><span class="s2072322DefaultParagraphFont">(7)    The debtor removed or concealed assets;</span></p><p dir="ltr" class="s2072322Normal-000001"><span class="s2072322DefaultParagraphFont">(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;</span></p><p dir="ltr" class="s2072322Normal-000001"><span class="s2072322DefaultParagraphFont">(9)    The debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;</span></p><p dir="ltr" class="s2072322Normal-000001"><span class="s2072322DefaultParagraphFont">(10)    The transfer occurred shortly before or shortly after a substantial debt was incurred; and</span></p><p dir="ltr" class="s2072322Normal-000001"><span class="s2072322DefaultParagraphFont">(11)    The debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor.</span></p><p dir="ltr" class="s2072322Normal"><span xml:space="preserve" class="s2072322000004"> </span></p><p dir="ltr" class="s2072322Normal"><span class="s2072322SCL">Source:</span><span xml:space="preserve" class="s2072322SCL-000005"> SL 1987, ch 365, § 4.</span></p></div></body></html>