§60-1312. Cause of action or claim for relief by creditor of

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

transferor — Requirements.

A. A cause of action or claim for relief with respect to a qualified disposition of a transferor's assets under Section 29 of this act is extinguished unless the action under Section 29 of this act may only be brought by a creditor of the transferor who meets one of the following requirements:

1. Is a creditor of the settlor before the settlor's assets are transferred to the trust; or

2. Becomes a creditor subsequent to the transfer into trust, and the asset was listed on a financial statement provided to a bank or financial institution by or on behalf of the transferor for the purpose of obtaining credit as a borrower, guarantor, surety, pledgor, or otherwise.

B. Any action under Section 29 of this act may be filed at any time, but in any event not later than five

(5)years after the

creditor has obtained a final, unappealable judgment against the transferor. In such action, the creditor may proceed against the transferred property or recover the value thereof in an amount up to the amount of such judgment against the transferor.

C. This section and Sections 29, 31, 32, and 33 of this act are inseparably interwoven with substantive rights that a deprivation of legal rights would result if another jurisdiction's laws and regulations to the contrary are applied to a claim or cause of action described therein. Added by Laws 2024, c. 369, § 30, eff. Nov. 1, 2024.