Uniform Fraudulent Transfer Act(UFTA)Law
Legal Definition of Uniform Fraudulent Transfer Act
set of laws adopted in 1984 by a national commission on uniform state laws and intended to replace the Uniform Fraudulent Conveyance Act. Changes to the earlier act were necessary in order to bring it in line with changes in bankruptcy law, with the Uniform Commercial Code, and with the Model Rules of Professional Conduct. While, like the UFCA, rendering transfers voidable because of constructive or actual fraudulent intent, the UFTA created a different definition of insolvency, treated the preferential transfer as avoidable in the case of fraud, and changed the remedies available to creditors. Thirty-three states have adopted the UFTA.