Currently, New York law requires “clear and convincing proof” of the transferor’s intent to hinder, delay, or defraud creditors in intentional fraudulent conveyance cases. To reduce forum shopping, the new Act codifies a uniform choice of law rule based on the debtor’s location at the time of the transfer, determined by reference to its chief executive office. Currently, New York employs a common-law, multi-factor choice of law analysis for fraudulent conveyance claims. Codified bright-line choice of law rule.This change brings New York’s statute of limitations in line with most other states and eliminates what is sometimes an advantage for creditors. The UVTA eliminates New York’s uniquely long six-year statute of limitations for fraudulent conveyances and replaces it with a statute of repose expiring four years after the date of the challenged transaction or one year after the date of reasonable discovery, whichever is later. The UVTA will become effective in New York on April 4, 2020, and includes a number of substantive changes of interest to creditors. The UVTA was promulgated as the successor to the Uniform Fraudulent Transfers Act in place in most states (but not New York), and has so far been enacted in 20 other states. On December 6, 2019, Governor Cuomo signed into law an Act that entirely repeals New York’s existing fraudulent conveyance law which has been in place since 1925, and replaces it with the Uniform Law Commission’s Uniform Voidable Transactions Act (UVTA). With little fanfare, New York has recently enacted a complete overhaul of its fraudulent conveyance law.
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