Page:United States Statutes at Large Volume 104 Part 6.djvu/571

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PUBLIC LAW 101-647—NOV. 29, 1990 104 STAT. 4961 common law, a spouse, or an individual so related to a spouse within the third degree as so determined. "(6) 'Transfer' means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, and creation of a lien or other encumbrance. "(7) 'Valid lien' means a lien that is effective against the holder of a judicial lien subsequently obtained in legal or equitable proceeding. "§ 3302. Insolvency "(a) IN GENERAL. — Except as provided in subsection (c), a debtor is insolvent if the sum of the debtor's debts is greater than all of the debtor's assets at a fair valuation. "(b) PRESUMPTION. — A debtor who is generally not paying debts as they become due is presumed to be insolvent. "(c) CALCULATION. — A partnership is insolvent under subsection (a) if the sum of the partnership's debts is greater than the aggregate, at a fair valuation, of— "(1) all of the partnership's assets; and "(2) the sum of the excess of the value of each general partner's non-partnership assets over the partner's non-partnership debts. "(d) ASSETS.—For purposes of this section, assets do not include property that is transferred, concealed, or removed with' intent to hinder, delay, or defraud creditors or that has been transferred in a manner making the transfer voidable under this subchapter. "(e) DEBTS.— For purposes of this section, debts do not include an obligation to the extent such obligation is secured by a valid lien on property of the debtor not included as an asset. "§ 3303. Value for transfer or obligation "(a) TRANSACTION.— Value is given for a transfer or an obligation if, in exchange for the transfer or obligation, property is transferred or an antecedent debt is secured or satisfied, but value does not include an unperformed promise made otherwise than in the ordinary course of the promisor's business to furnish support to the debtor or another person. "(b) REASONABLY EQUIVALENT VALUE. — For the purposes of sections 3304 and 3307, a person gives a reasonably equivalent value if the person acquires an interest of the debtor in an asset pursuant to a regularly conducted, noncollusive foreclosure sale or execution of a power of sale for the acquisition or disposition of such interest upon default under a mortgage, deed of trust, or security agreement. "(c) PRESENT VALUE. —A transfer is made for present value if the exchange between the debtor and the transferee is intended by them to be contemporaneous and is in fact substantially contemporaneous. "§ 3304. Transfer fraudulent as to a debt to the United States "(a) DEBT ARISING BEFORE TRANSFER.— Except as provided in section 3307, a transfer made or obligation incurred by a debtor is fraudulent as to a debt to the United States which arises before the transfer is made or the obligation is incurred if—