Guam Voidable Transaction Statutes

Guam State GuamVoidableTransactionUVTAFraudulentTransferUFTA



Guam Fraudulent Transfer Laws

(Non-Uniform Act)

{ Check Currency - Current Only As Of January 1, 2020 }

20 G.C.A. §S 6101, et seq.

§ 6101. Transfers, Etc., Defraud Creditors.

(Information regarding effective dates, repeals, etc. is provided subsequently in this document.)
Every transfer of property or charge thereon made, every obligation incurred, and every judicial proceeding taken, with intent to delay or defraud any creditor or other person of his demands, is void against all creditors of the debtor, and their successors in interest, and against any person upon whom the estate of the debtor devolves in trust for the benefit of others than the debtor.

§ 6102. Creditor’s Rights Judicially Determined.

(Information regarding effective dates, repeals, etc. is provided subsequently in this document.)
A creditor can avoid the act or obligation of his debtor for fraud only where the fraud obstructs the enforcement, by legal process, of his right to take the property affected by the transfer or obligation.

§ 6103. Question of Fraud, How Determined.

(Information regarding effective dates, repeals, etc. is provided subsequently in this document.)
In all cases arising under 21 GCA § 41101 [Void Instruments, purchases], or under the provisions of this Chapter, except as otherwise provided in 7 GCA § 50500 [Transfers, Etc., Defraud Creditors], the question of fraudulent intent is one of fact and not of law; nor can any transfer or charge be adjudged fraudulent solely on the ground that it was not made for a valuable consideration; provided, however, that any transfer or encumbrance of property made or given voluntarily, or without a valuable consideration, by a party while insolvent or in contemplation of insolvency, shall be fraudulent, and void as to existing creditors.
9 G.C.A. § 46.55

§ 46.55. Defrauding Creditors; Defined & Punished.

(Information regarding effective dates, repeals, etc. is provided subsequently in this document.)
(a) A person commits an offense, he:
(1) destroys, removes, conceals, encumbers, transfers or otherwise deals with property subject to a security interest with intent to defeat enforcement of that security interest;
(2) sells, assigns, exchanges, secretes, injures, destroys or otherwise disposes of any property upon which he has previously executed a mortgage or any instrument that operates as such, with intent to defraud the mortgages or a purchaser thereof;
(3) secretes, removes, assigns, conveys or otherwise disposes of his property with intent to defraud a judgment creditor or to prevent that property from being made liable for the payment of his debts;
(4) with intent to defraud, buys, receives, conceals or aids in concealing personal property, knowing it or any interest therein to be hired, leased or held as collateral security; or
(5) Intentionally sells, mortgages, conveys, conceals or aids in concealing personal property received by him upon a written conditional sale or lease agreement, or any other written agreement by which it or any interest therein is held as collateral security, before performance of any conditions precedent to acquiring the title thereto (A) without the consent in writing of the conditional seller, lessor or other holder of the security interest or (B) without disclosure to any buyer or transferee of the existence and terms of the conditional sale, lease or security agreement.
(b) An offense under this Section is a felony of the third degree if the value of the property which is the subject of the offense exceeds Ten Thousand Dollars in value. Otherwise the offense is a misdemeanor.
COMMENT: Section 46.55 supersedes Penal Code §§ 154, 155, 502a, and 502b. This Section is necessary because the statutes dealing with theft are framed in terms of property of another, the term being defined to exclude the subject matter of this Section. Section 46.55 deviates from the Model Penal Code by upgrading the offense to a third degree felony where the property which is the subject of the offense exceeds $10,000 in value.
Section 46.55 also includes within its scope the buyer and receiver of the property if he has acted with the requisite intent to defraud.

§ 46.60. Fraud in Insolvency; Defined & Punished.

(Information regarding effective dates, repeals, etc. is provided subsequently in this document.)
(a) A person commits a misdemeanor, if, with intent to defraud a creditor and with knowledge either that proceedings have been or are about to be instituted for the appointment of an administrator or that a composition agreement or other arrangement for the benefit of creditors has been or is about to be made, he:
(1) conveys, transfers, removes, conceals, destroys encumbers or otherwise disposes of any part of or any interest in the debtor’s estate;
(2) obtains any substantial part of or interest in the debtor’s estate;
(3) presents to any creditor or to the administrator any writing or record relating to the debtor’s estate or to a creditor’s claim, knowing the writing or record to contain a false material statement;
(4) fails or refuses to disclose any information that he is required by law to furnish to the administrator regarding the existence, amount or location of any part of or any interest in the debtor’s estate; or
(5) misrepresents any information furnished to the administrator regarding the existence, amount or location of any part of or any interest in the debtor’s estate.
(b) As used in this Section, Aadministrator means an assignee or trustee for the benefit of creditors, a conservator, a receiver or any other person entitled to administer property for the benefit of creditors.
COMMENT: A new Section. This Section is narrowly drawn in that the defendant must have an intent to defraud a creditor, although not necessarily his own, and must know of the actual or impending appointing of an administrator in an insolvency proceeding, or that a composition or other arrangement for the benefit of creditors has been or is about to be made.
Considering the large number of bankruptcies and insolvencies which have been occurring on Guam, this Section could be of some use.





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