Bill Text: IL HB0030 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Uniform Fraudulent Transfer Act. Changes the short title to the Uniform Voidable Transactions Act. Makes changes to the Act that were recommended by the National Conference of Commissioners on Uniform State Laws in 2014, including: adding definitions for "electronic", "organization", "record", and "sign"; providing that a presumption of insolvency imposes on the party against which the presumption is directed the burden of proving that the nonexistence of insolvency is more probable than its existence; removing language providing that a partnership is insolvent if the sum of the partnership's debts is greater than the aggregate, at a fair valuation, of all of the partnership's assets and the sum of the excess of the value of each general partner's nonpartnership assets over the partner's nonpartnership debts; providing that a creditor making a claim for relief has the burden of proving the elements of the claim for relief by a preponderance of the evidence; adding rules to determine the burden of proving matters regarding defenses, liability, and the protection of transferees or obligees; adding rules to determine a debtor's location; providing that a series organization and each protected series of the organization is a separate person, even if for other purposes a protected series is not a person separate from the organization of other protected series of the organization; how the Act relates to the Electronic Signatures in Global and National Commerce Act; and other changes. Makes conforming changes in the Illinois Insurance Code and the Illinois Trust Code.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-01-09 - Referred to Rules Committee [HB0030 Detail]

Download: Illinois-2025-HB0030-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB0030 Introduced , by Rep. Daniel Didech SYNOPSIS AS INTRODUCED:
See Index
Amends the Uniform Fraudulent Transfer Act. Changes the short title to the Uniform Voidable Transactions Act. Makes changes to the Act that were recommended by the National Conference of Commissioners on Uniform State Laws in 2014, including: adding definitions for "electronic", "organization", "record", and "sign"; providing that a presumption of insolvency imposes on the party against which the presumption is directed the burden of proving that the nonexistence of insolvency is more probable than its existence; removing language providing that a partnership is insolvent if the sum of the partnership's debts is greater than the aggregate, at a fair valuation, of all of the partnership's assets and the sum of the excess of the value of each general partner's nonpartnership assets over the partner's nonpartnership debts; providing that a creditor making a claim for relief has the burden of proving the elements of the claim for relief by a preponderance of the evidence; adding rules to determine the burden of proving matters regarding defenses, liability, and the protection of transferees or obligees; adding rules to determine a debtor's location; providing that a series organization and each protected series of the organization is a separate person, even if for other purposes a protected series is not a person separate from the organization of other protected series of the organization; how the Act relates to the Electronic Signatures in Global and National Commerce Act; and other changes. Makes conforming changes in the Illinois Insurance Code and the Illinois Trust Code.
LRB104 02886 LNS 12896 b
A BILL FOR
HB0030 LRB104 02886 LNS 12896 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Sections 35B-25 and 204 as follows:
(215 ILCS 5/35B-25)
Sec. 35B-25. Plan of division approval.
(a) A division shall not become effective until it is
approved by the Director after reasonable notice and a public
hearing, if the notice and hearing are deemed by the Director
to be in the public interest. Any decision by the Director on
whether or not to hold a public hearing on either a plan of
division or an amended plan of division may be made
independently by the Director. The Director shall hold a
public hearing if one is requested by the dividing company. A
hearing conducted under this Section shall be conducted in
accordance with Article 10 of the Illinois Administrative
Procedure Act.
(b) The Director shall approve a plan of division unless
the Director finds that:
(1) the interest of any class of policyholder or
shareholder of the dividing company will not be properly
protected;

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(2) each new company created by the proposed division,
except a new company that is a nonsurviving party to a
merger pursuant to subsection (b) of Section 156, would be
ineligible to receive a license to do insurance business
in this State pursuant to Section 5;
(2.5) each new company created by the proposed
division, except a new company that is a nonsurviving
party to a merger pursuant to subsection (b) of Section
156, that will be a member insurer of the Illinois Life and
Health Insurance Guaranty Association and that will have
policy liabilities allocated to it will not be licensed to
do insurance business in each state where such policies
were written by the dividing company;
(3) the proposed division violates a provision of the
Uniform Voidable Transactions Fraudulent Transfer Act;
(4) the division is being made for purposes of
hindering, delaying, or defrauding any policyholders or
other creditors of the dividing company;
(5) one or more resulting companies will not be
solvent upon the consummation of the division; or
(6) the remaining assets of one or more resulting
companies will be, upon consummation of a division,
unreasonably small in relation to the business and
transactions in which the resulting company was engaged or
is about to engage.
(c) In determining whether the standards set forth in

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paragraph (3) of subsection (b) have been satisfied, the
Director shall only apply the Uniform Voidable Transactions
Fraudulent Transfer Act to a dividing company in its capacity
as a resulting company and shall not apply the Uniform
Voidable Transactions Fraudulent Transfer Act to any dividing
company that is not proposed to survive the division.
(d) In determining whether the standards set forth in
paragraphs (3), (4), (5), and (6) of subsection (b) have been
satisfied, the Director may consider all proposed assets of
the resulting company, including, without limitation,
reinsurance agreements, parental guarantees, support or keep
well agreements, or capital maintenance or contingent capital
agreements, in each case, regardless of whether the same would
qualify as an admitted asset as defined in Section 3.1.
(e) In determining whether the standards set forth in
paragraph (3) of subsection (b) have been satisfied, with
respect to each resulting company, the Director shall, in
applying the Uniform Voidable Transactions Fraudulent Transfer
Act, treat:
(1) the resulting company as a debtor;
(2) liabilities allocated to the resulting company as
obligations incurred by a debtor;
(3) the resulting company as not having received
reasonably equivalent value in exchange for incurring the
obligations; and
(4) assets allocated to the resulting company as

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remaining property.
(f) All information, documents, materials, and copies
thereof submitted to, obtained by, or disclosed to the
Director in connection with a plan of division or in
contemplation thereof, including any information, documents,
materials, or copies provided by or on behalf of a domestic
stock company in advance of its adoption or submission of a
plan of division, shall be confidential and shall be subject
to the same protection and treatment in accordance with
Section 131.22 as documents and reports disclosed to or filed
with the Director pursuant to subsection (a) of Section
131.14b until such time, if any, as a notice of the hearing
contemplated by subsection (a) is issued.
(g) From and after the issuance of a notice of the hearing
contemplated by subsection (a), all business, financial, and
actuarial information that the domestic stock company requests
confidential treatment, other than the plan of division, shall
continue to be confidential and shall not be available for
public inspection and shall be subject to the same protection
and treatment in accordance with Section 131.22 as documents
and reports disclosed to or filed with the Director pursuant
to subsection (a) of Section 131.14b.
(h) All expenses incurred by the Director in connection
with proceedings under this Section, including expenses for
the services of any attorneys, actuaries, accountants, and
other experts as may be reasonably necessary to assist the

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Director in reviewing the proposed division, shall be paid by
the dividing company filing the plan of division. A dividing
company may allocate expenses described in this subsection in
a plan of division in the same manner as any other liability.
(i) If the Director approves a plan of division, the
Director shall issue an order that shall be accompanied by
findings of fact and conclusions of law.
(j) The conditions in this Section for freeing one or more
of the resulting companies from the liabilities of the
dividing company and for allocating some or all of the
liabilities of the dividing company shall be conclusively
deemed to have been satisfied if the plan of division has been
approved by the Director in a final order that is not subject
to further appeal.
(k) If a dividing company amends its plan of division at
any time before the plan of division becomes effective,
including after the Director's approval of the plan or after
any hearing has been conducted under this Section, then the
dividing company shall file the amended plan of division for
approval by the Director pursuant to the provisions of this
Section. If the Director has already issued an order approving
the dividing company's previous plan of division under
subsection (i), then that order shall not be rescinded by the
Director's subsequent disapproval of an amended plan.
(1) If a hearing is conducted on the amended plan of
division after the Director has approved a previous plan

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of division, then the hearing shall not be considered a
rehearing or a reopening of any hearing conducted on the
previous plan. Nothing in this Section shall prohibit the
dividing company from requesting a rehearing or reopening
of any hearing conducted on any disapproved plan of
division, amended or otherwise.
(2) Whether under direct review or in a hearing, the
Director may rely on information already submitted or
developed in connection with the previous plan of
division, as well as any findings of fact or conclusions
of law if a hearing has been conducted or an approval order
has been issued on the previous plan, to the extent the
information, findings, or conclusions remain relevant to
the amended plan of division, and the Director shall
collect any other information necessary to make a
determination under subsection (b).
(3) The fee assessed under Section 408 for filing a
plan of division shall not apply to the filing of an
amended plan of division, but subsection (h) shall apply
to all proceedings related to the amended plan.
(Source: P.A. 102-394, eff. 8-16-21; 102-578, eff. 7-1-22 (See
Section 5 of P.A. 102-672 for effective date of P.A. 102-578);
103-90, eff. 6-9-23.)
(215 ILCS 5/204) (from Ch. 73, par. 816)
Sec. 204. Prohibited and voidable transfers and liens.

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(a)(1) A preference is a transfer of any of the property of
a company to or for the benefit of a creditor, for or on
account of an antecedent debt, made or suffered by the company
within 2 years before the filing of a complaint under this
Article, the effect of which may be to enable the creditor to
obtain a greater percentage of this debt than another creditor
of the same class would receive.
(2) Any preference may be avoided by the Director as
rehabilitator, liquidator, or conservator if:
(A) the company was insolvent at the time of the
transfer; and
(B) the transfer was made within 4 months before the
filing of the complaint; or the creditor receiving it was
(i) an officer, or any employee or attorney or other
person who was in fact in a position of comparable
influence in the company to an officer whether or not that
person held such a position, (ii) any shareholder holding,
directly or indirectly, more than 5% of any class of any
equity security issued by the company, or (iii) any other
person, firm, corporation, association, or aggregation of
individuals with whom the company did not deal at arm's
length.
(3) Where the preference is voidable, the Director as
rehabilitator, liquidator, or conservator may recover the
property or, if it has been converted, its value from any
person who has received or converted the property; except

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where a bona fide purchaser or lienor has given less than fair
equivalent value, the purchaser or lienor shall have a lien
upon the property to the extent of the consideration actually
given. Where a preference by way of lien or security title is
voidable, the court may on due notice order the lien or title
to be preserved for the benefit of the estate, in which event
the lien or title shall pass to the Director as rehabilitator
or liquidator.
(b)(1) A transfer of property other than real property
shall be deemed to be made or suffered when it becomes so far
perfected that no subsequent lien obtainable by legal or
equitable proceedings on a simple contract could become
superior to the rights of the transferee.
(2) A transfer of real property shall be deemed to be made
or suffered when it becomes so far perfected that no
subsequent bona fide purchaser from the company could obtain
rights superior to the rights of the transferee.
(3) A transfer that creates an equitable lien shall not be
deemed to be perfected if there are available means by which a
legal lien could be created.
(4) A transfer not perfected before the filing of a
complaint shall be deemed to be made immediately before the
filing of the complaint.
(5) The provisions of this subsection apply whether or not
there are or were creditors who might have obtained liens or
persons who might have become bona fide purchasers.

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(c) For purposes of this Section:
(1) A lien obtainable by legal or equitable
proceedings upon a simple contract is one arising in the
ordinary course of the proceedings upon the entry or
docketing of a judgment or decree, or upon attachment,
garnishment, execution, or like process, whether before,
upon, or after judgment or decree and whether before or
upon levy. It does not include liens that, under
applicable law, are given a special priority over other
liens that are prior in time.
(2) A lien obtainable by legal or equitable
proceedings could become superior to the rights of a
transferee, or a purchaser could obtain rights superior to
the rights of a transferee within the meaning of
subsection (b) of this Section, if such consequences would
follow only from the lien or purchase itself, or from the
lien or purchase followed by any step wholly within the
control of the respective lienholder or purchaser, with or
without the aid of ministerial action by public officials.
A lien could not, however, become superior and a purchase
could not create superior rights for the purpose of
subsection (b) of this Section through any acts subsequent
to an obtaining of the lien or subsequent to a purchase
that requires the agreement or concurrence of any third
party or that requires any further judicial action or
ruling.

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(d) A transfer of property for or on account of a new and
contemporaneous consideration which is deemed under subsection
(b) of this Section to be made or suffered after the transfer
because of delay in perfecting it does not thereby become a
transfer for or on account of an antecedent debt if any acts
required by the applicable law to be performed in order to
perfect the transfer as against liens or bona fide purchasers'
rights are performed within 21 days or any period expressly
allowed by the law, whichever is less. A transfer to secure a
future loan, if the loan is actually made, or a transfer that
becomes security for a future loan, shall have the same effect
as a transfer for or on account of a new and contemporaneous
consideration.
(e) If any lien deemed voidable under part (2) of
subsection (a) of this Section has been dissolved by the
furnishing of a bond or other obligation, the surety on which
has been indemnified directly or indirectly by the transfer of
or the creation of a lien upon any property of a company before
the filing of a complaint under this Article, the indemnifying
transfer or lien shall also be deemed voidable.
(f) The property affected by any lien deemed voidable
under subsections (a) and (e) of this Section shall be
discharged from the lien, and that property and any of the
indemnifying property transferred to or for the benefit of a
surety shall pass to the Director as rehabilitator or
liquidator, except that the court may, on due notice, order

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any such lien to be preserved for the benefit of the estate and
the court may direct that such conveyance be executed as may be
proper or adequate to evidence the title of the Director as
rehabilitator or liquidator.
(g) The court shall have summary jurisdiction over any
proceeding by the Director as rehabilitator, liquidator, or
conservator to hear and determine the rights of any parties
under this Section. Reasonable notice of any hearings in the
proceeding shall be given to all parties in interest,
including the obligee of a releasing bond or other life
obligation. Where an order is entered for the recovery of
indemnifying property in kind or for the avoidance of an
indemnifying lien, the court, upon application of any party in
interest, shall in the same proceeding ascertain the value of
the property or lien, and if the value is less than the amount
for which the property is indemnity or than the amount of the
lien, the transferee or lienholder may elect to retain the
property or lien upon payment of its value, as ascertained by
the court, to the Director as rehabilitator, liquidator, or
conservator, within such reasonable times as the court shall
fix.
(h) The liability of the surety under the releasing bond
or other similar obligation shall be discharged to the extent
of the value of the indemnifying property recovered or the
indemnifying lien nullified and avoided by the Director as
rehabilitator, liquidator, or conservator. Where the property

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is retained under subsection (g) of this Section, the
liability shall be discharged to the extent of the amount paid
to the Director as rehabilitator, liquidator, or conservator.
(i) If a creditor has been preferred and thereafter in
good faith gives the company further credit without security
of any kind, for property which becomes a part of the company's
estate, the amount of the new credit remaining unpaid at the
time of the petition may be set off against the preference
which would otherwise be recoverable from the creditor.
(j) If a company shall, directly or indirectly, within 4
months before the filing of a complaint under this Article, or
at any time in contemplation of such a proceeding, pay money or
transfer property to any attorney for services rendered or to
be rendered, the transactions may be examined by the court on
its own motion or shall be examined by the court on petition of
the Director as rehabilitator, liquidator, or conservator and
shall be held valid only to the extent of a reasonable amount
to be determined by the court, and the excess may be recovered
by the Director as rehabilitator, liquidator, or conservator
for the benefit of the estate provided that where the attorney
is in a position of influence in the company or an affiliate
thereof payment of any money or the transfer of any property to
the attorney for services rendered or to be rendered shall be
governed by item (B) of part (2) of subsection (a) of this
Section.
(k)(1) An officer, director, manager, employee,

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shareholder, member, subscriber, attorney, or other person
acting on behalf of the company who knowingly participates in
giving any preference when that officer, director, manager,
employee, shareholder, member, subscriber, attorney, or other
person has reasonable cause to believe the company is or is
about to become insolvent at the time of the preference shall
be personally liable to the Director as rehabilitator,
liquidator, or conservator for the amount of the preference.
There is a reasonable cause to so believe if the transfer was
made within 4 months before the date of filing of the
complaint.
(2) A person receiving any property from the company or
the benefit thereof as a preference voidable under subsection
(a) of this Section shall be personally liable therefor and
shall be bound to account to the Director as rehabilitator,
liquidator, or conservator.
(3) Nothing in this Section shall prejudice any other
claim by the Director as rehabilitator, liquidator, or
conservator against any person.
(l) For purposes of this Section, the company is presumed
to have been insolvent on and during the 4 month period
immediately preceding the date of the filing of the complaint.
(m) The Director as rehabilitator, liquidator, or
conservator may not avoid a transfer under this Section to the
extent that the transfer was:
(A) Intended by the company and the creditor to or for

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whose benefit the transfer was made to be a
contemporaneous exchange for new value given to the
company, and was in fact a substantially contemporaneous
exchange; or
(B) In payment of a debt incurred by the company in the
ordinary course of business or financial affairs of the
company and the transferee; made in the ordinary course of
business or financial affairs of the company and the
transferee; and made according to ordinary business terms;
(C) In the case of a transfer by a company where the
Director has determined that an event described in Section
35A-25 or 35A-30 has occurred, specifically approved by
the Director in writing pursuant to this subsection,
whether or not the company is in receivership under this
Article. Upon approval by the Director, such a transfer
cannot later be found to constitute a prohibited or
voidable transfer based solely upon a deviation from the
statutory payment priorities established by law for any
subsequent receivership; or
(D) Of money or other property arising under or in
connection with any Federal Home Loan Bank security
agreement or any pledge, security, collateral or guarantee
agreement, or any other similar arrangement or credit
enhancement relating to a Federal Home Loan Bank security
agreement.
(n) The Director as rehabilitator, liquidator, or

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conservator may avoid any transfer of or lien upon the
property of a company that the estate of the company or a
policyholder, creditor, member, or stockholder of the company
may have avoided, and the Director as rehabilitator,
liquidator, or conservator may recover and collect the
property so transferred or its value from the person to whom it
was transferred unless the property was transferred to a bona
fide holder for value before the filing of the complaint. The
Director as rehabilitator, liquidator, or conservator shall be
deemed a creditor for purposes of pursuing claims under the
Uniform Voidable Transactions Fraudulent Transfer Act.
(o) Notwithstanding any provision of this Article to the
contrary, a Federal Home Loan Bank shall not be stayed,
enjoined, or prohibited from exercising or enforcing any right
or cause of action regarding collateral pledged under any
security agreement or any pledge, security, collateral or
guarantee agreement, or any other similar arrangement or
credit enhancement relating to a Federal Home Loan Bank
security agreement.
(Source: P.A. 100-89, eff. 8-11-17.)
Section 10. The Uniform Fraudulent Transfer Act is amended
by changing the title of the Act and Sections 1, 2, 3, 4, 5, 6,
7, 8, 9, and 10 and by adding Sections 10.1, 10.2, and 14 as
follows:

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(740 ILCS 160/Act title)
An Act in relation to voidable transactions fraudulent
transfers.
(740 ILCS 160/1) (from Ch. 59, par. 101)
Sec. 1. Short title. This Act, which was formerly cited as
the Uniform Fraudulent Transfer Act, shall be known and may be
cited as the Uniform Voidable Transactions Fraudulent Transfer
Act.
(Source: P.A. 86-814.)
(740 ILCS 160/2) (from Ch. 59, par. 102)
Sec. 2. Definitions. As used in this Act: As used in this
Act:
(a) "Affiliate" means:
(1) a person that who directly or indirectly owns,
controls, or holds with power to vote, 20% or more of the
outstanding voting securities of the debtor, other than a
person that who holds the securities: ,
(A) as a fiduciary or agent without sole
discretionary power to vote the securities; or
(B) solely to secure a debt, if the person has not
in fact exercised the power to vote;
(2) a corporation with 20% or more outstanding voting
securities which are directly or indirectly owned,
controlled, or held with power to vote, by the debtor or a

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person that who directly or indirectly owns, controls, or
holds with power to vote, 20% or more of the outstanding
voting securities of the debtor, other than a person that
who holds the securities: ,
(A) as a fiduciary or agent without sole
discretionary power to vote the securities; or
(B) solely to secure a debt, if the person has not
in fact exercised the power to vote;
(3) a person whose business is operated by the
debtor under a lease or other agreement, or a person
substantially all of whose assets are controlled by
the debtor; or
(4) a person that who operates the debtor's business
under a lease or other agreement or controls substantially
all of the debtor's assets.
(b) "Asset" means property of a debtor, but the term does
not include:
(1) property to the extent it is encumbered by a valid
lien;
(2) property to the extent it is generally exempt
under nonbankruptcy law laws of this State; or
(3) an interest in property held in tenancy by the
entireties to the extent it is not subject to process by a
creditor holding a claim against only one tenant.
(c) "Claim", except as used in "claim for relief", means a
right to payment, whether or not the right is reduced to

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judgment, liquidated, unliquidated, fixed, contingent,
matured, unmatured, disputed, undisputed, legal, equitable,
secured, or unsecured.
(d) "Creditor" means a person that who has a claim,
including a claim for past-due child support.
(e) "Debt" means liability on a claim.
(f) "Debtor" means a person that who is liable on a claim.
(g) "Electronic" means relating to technology having
electrical, digital, magnetic, wireless, optical,
electromagnetic, or similar capabilities.
(h) (g) "Insider" includes:
(1) if the debtor is an individual: ,
(A) a relative of the debtor or of a general
partner of the debtor;
(B) a partnership in which the debtor is a general
partner;
(C) a general partner in a partnership described
in clause (B); or
(D) a corporation of which the debtor is a
director, officer, or person in control;
(2) if the debtor is a corporation: ,
(A) a director of the debtor;
(B) an officer of the debtor;
(C) a person in control of the debtor;
(D) a partnership in which the debtor is a general
partner;

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(E) a general partner in a partnership described
in clause (D); or
(F) a relative of a general partner, director,
officer, or person in control of the debtor;
(3) if the debtor is a partnership: ,
(A) a general partner in the debtor;
(B) a relative of a general partner in, a general
partner of, or a person in control of the debtor;
(C) another partnership in which the debtor is a
general partner;
(D) a general partner in a partnership described
in clause (C); or
(E) a person in control of the debtor;
(4) an affiliate, or an insider of an affiliate as if
the affiliate were the debtor; and
(5) a managing agent of the debtor.
(i) (h) "Lien" means a charge against or an interest in
property to secure payment of a debt or performance of an
obligation, and includes a security interest created by
agreement, a judicial lien obtained by legal or equitable
process or proceedings, a common-law lien, or a statutory
lien.
(j) "Organization" means a person other than an
individual. (i) "Person" means an individual, partnership,
corporation, association, organization, government or
governmental subdivision or agency, business trust, estate,

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trust, or any other legal or commercial entity.
(k) "Person" means an individual, estate, partnership,
association, trust, business or nonprofit entity, public
corporation, government or governmental subdivision, agency,
or instrumentality, or other legal or commercial entity.
(l) (j) "Property" means anything that may be the subject
of ownership.
(m) "Record" means information that is inscribed on a
tangible medium or that is stored in an electronic or other
medium and is retrievable in perceivable form.
(n) (k) "Relative" means an individual related by
consanguinity within the third degree as determined by the
common law, a spouse, or an individual related to a spouse
within the third degree as so determined, and includes an
individual in an adoptive relationship within the third
degree.
(o) "Sign" means, with present intent to authenticate or
adopt a record:
(1) to execute or adopt a tangible symbol; or
(2) to attach to or logically associate with the
record an electronic symbol, sound, or process.
(p) (l) "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, license,
and creation of a lien or other encumbrance.

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(q) (m) "Valid lien" means a lien that is effective
against the holder of a judicial lien subsequently obtained by
legal or equitable process or proceedings.
(Source: P.A. 90-18, eff. 7-1-97.)
(740 ILCS 160/3) (from Ch. 59, par. 103)
Sec. 3. Insolvency.
(a) A debtor is insolvent if, at a fair valuation, the sum
of the debtor's debts is greater than the sum all of the
debtor's assets at a fair valuation.
(b) A debtor that who is generally not paying the debtor's
his debts as they become due other than as a result of a bona
fide dispute is presumed to be insolvent. The presumption
imposes on the party against which the presumption is directed
the burden of proving that the nonexistence of insolvency is
more probable than its existence.
(c) 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 all of the partnership's assets and the
sum of the excess of the value of each general partner's
nonpartnership assets over the partner's nonpartnership debts.
(c) (d) Assets under this Section do not include property
that has been 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 Act.

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(d) (e) Debts under this Section do not include an
obligation to the extent it is secured by a valid lien on
property of the debtor not included as an asset.
(Source: P.A. 86-814.)
(740 ILCS 160/4) (from Ch. 59, par. 104)
Sec. 4. Value.
(a) 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) For the purposes of paragraph (2) of subsection (a) of
Section 5 and Section 6, 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 the interest of the
debtor upon default under a mortgage, deed of trust, or
security agreement.
(c) 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.
(Source: P.A. 86-814.)

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(740 ILCS 160/5) (from Ch. 59, par. 105)
Sec. 5. Transfer or obligation voidable as to present or
future creditor.
(a) A transfer made or obligation incurred by a debtor is
voidable fraudulent as to a creditor, whether the creditor's
claim arose before or after the transfer was made or the
obligation was incurred, if the debtor made the transfer or
incurred the obligation:
(1) with actual intent to hinder, delay, or defraud
any creditor of the debtor; or
(2) without receiving a reasonably equivalent value in
exchange for the transfer or obligation, and the debtor:
(A) was engaged or was about to engage in a
business or a transaction for which the remaining
assets of the debtor were unreasonably small in
relation to the business or transaction; or
(B) intended to incur, or believed or reasonably
should have believed that the debtor he would incur,
debts beyond the debtor's his ability to pay as they
became due.
(b) In determining actual intent under paragraph (1) of
subsection (a), consideration may be given, among other
factors, to whether:
(1) the transfer or obligation was to an insider;
(2) the debtor retained possession or control of the
property transferred after the transfer;

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(3) the transfer or obligation was disclosed or
concealed;
(4) before the transfer was made or obligation was
incurred, the debtor had been sued or threatened with
suit;
(5) the transfer was of substantially all the debtor's
assets;
(6) the debtor absconded;
(7) the debtor removed or concealed assets;
(8) the value of the consideration received by the
debtor was reasonably equivalent to the value of the asset
transferred or the amount of the obligation incurred;
(9) the debtor was insolvent or became insolvent
shortly after the transfer was made or the obligation was
incurred;
(10) the transfer occurred shortly before or shortly
after a substantial debt was incurred; and
(11) the debtor transferred the essential assets of
the business to a lienor that who transferred the assets
to an insider of the debtor.
(c) A creditor making a claim for relief under subsection
(a) has the burden of proving the elements of the claim for
relief by a preponderance of the evidence.
(Source: P.A. 86-814.)
(740 ILCS 160/6) (from Ch. 59, par. 106)

HB0030 - 25 - LRB104 02886 LNS 12896 b
Sec. 6. Transfer or obligation voidable as to present
creditor.
(a) A transfer made or obligation incurred by a debtor is
voidable fraudulent as to a creditor whose claim arose before
the transfer was made or the obligation was incurred if the
debtor made the transfer or incurred the obligation without
receiving a reasonably equivalent value in exchange for the
transfer or obligation and the debtor was insolvent at that
time or the debtor became insolvent as a result of the transfer
or obligation.
(b) A transfer made by a debtor is voidable fraudulent as
to a creditor whose claim arose before the transfer was made if
the transfer was made to an insider for an antecedent debt, the
debtor was insolvent at that time, and the insider had
reasonable cause to believe that the debtor was insolvent.
(c) Subject to subsection (b) of Section 3, a creditor
making a claim for relief under subsection (a) or (b) has the
burden of proving the elements of the claim for relief by a
preponderance of the evidence.
(Source: P.A. 86-814.)
(740 ILCS 160/7) (from Ch. 59, par. 107)
Sec. 7. When transfer is made or obligation is incurred.
For the purposes of this Act: For the purposes of this Act:
(a) a transfer is made:
(1) with respect to an asset that is real property

HB0030 - 26 - LRB104 02886 LNS 12896 b
other than a fixture, but including the interest of a
seller or purchaser under a contract for the sale of the
asset, when the transfer is so far perfected that a
good-faith purchaser of the asset from the debtor against
which whom applicable law permits the transfer to be
perfected cannot acquire an interest in the asset that is
superior to the interest of the transferee; and
(2) with respect to an asset that is not real property
or that is a fixture, when the transfer is so far perfected
that a creditor on a simple contract cannot acquire a
judicial lien otherwise than under this Act that is
superior to the interest of the transferee;
(b) if applicable law permits the transfer to be
perfected as provided in subsection (a) and the transfer
is not so perfected before the commencement of an action
for relief under this Act, the transfer is deemed made
immediately before the commencement of the action;
(c) if applicable law does not permit the transfer to be
perfected as provided in subsection (a), the transfer is made
when it becomes effective between the debtor and the
transferee;
(d) a transfer is not made until the debtor has acquired
rights in the asset transferred; and
(e) an obligation is incurred:
(1) if oral, when it becomes effective between the
parties; or

HB0030 - 27 - LRB104 02886 LNS 12896 b
(2) if evidenced by a record writing, when the record
signed writing executed by the obligor is delivered to or
for the benefit of the obligee.
(Source: P.A. 86-814.)
(740 ILCS 160/8) (from Ch. 59, par. 108)
Sec. 8. Remedies of creditor.
(a) In an action for relief against a transfer or
obligation under this Act, a creditor, subject to the
limitations in Section 9, may obtain:
(1) avoidance of the transfer or obligation to the
extent necessary to satisfy the creditor's claim;
(2) an attachment or other provisional remedy against
the asset transferred or other property of the transferee
if available under applicable law in accordance with the
procedure prescribed by the Code of Civil Procedure; and
(3) subject to applicable principles of equity and in
accordance with applicable rules of civil procedure: ,
(A) an injunction against further disposition by
the debtor or a transferee, or both, of the asset
transferred or of other property;
(B) appointment of a receiver to take charge of
the asset transferred or of other property of the
transferee; or
(C) any other relief the circumstances may
require.

HB0030 - 28 - LRB104 02886 LNS 12896 b
(b) If a creditor has obtained a judgment on a claim
against the debtor, the creditor, if the court so orders, may
levy execution on the asset transferred or its proceeds.
(Source: P.A. 86-814.)
(740 ILCS 160/9) (from Ch. 59, par. 109)
Sec. 9. Defenses, liability, and protection of transferee
or obligee.
(a) A transfer or obligation is not voidable under
paragraph (1) of subsection (a) of Section 5 against a person
that who took in good faith and for a reasonably equivalent
value given the debtor or against any subsequent transferee or
obligee.
(b) To the extent a transfer is avoidable in an action by a
creditor under paragraph (1) of subsection (a) of Section 8,
the following rules apply:
(1) Except as otherwise provided in this Section, to
the extent a transfer is voidable in an action by a
creditor under paragraph (1) of subsection (a) of Section
8, the creditor may recover judgment judgement for the
value of the asset transferred, as adjusted under
subsection (c), or the amount necessary to satisfy the
creditor's claim, whichever is less. The judgment may be
entered against:
(A) (1) the first transferee of the asset or the
person for whose benefit the transfer was made; or

HB0030 - 29 - LRB104 02886 LNS 12896 b
(B) an immediate or mediate transferee of the
first transferee, other than: (2) any subsequent
transferee other than
(i) a good-faith transferee that who took for
value; or or from any subsequent transferee.
(ii) an immediate or mediate good-faith
transferee of a person described in item (i).
(2) Recovery pursuant to paragraph (1) of subsection
(a) or subsection (b) of Section 8 of or from the asset
transferred or its proceeds, by levy or otherwise, is
available only against a person described in subparagraph
(A) or (B) of paragraph (1).
(c) If the judgment under subsection (b) is based upon the
value of the asset transferred, the judgment must be for an
amount equal to the value of the asset at the time of the
transfer, subject to adjustment as the equities may require.
(d) Notwithstanding voidability of a transfer or an
obligation under this Act, a good-faith transferee or obligee
is entitled, to the extent of the value given the debtor for
the transfer or obligation, to:
(1) a lien on or a right to retain an any interest in
the asset transferred;
(2) enforcement of an any obligation incurred; or
(3) a reduction in the amount of the liability on the
judgment.
(e) A transfer is not voidable under paragraph (2) of

HB0030 - 30 - LRB104 02886 LNS 12896 b
subsection (a) of Section 5 or Section 6 if the transfer
results from:
(1) termination of a lease upon default by the debtor
when the termination is pursuant to the lease and
applicable law; or
(2) enforcement of a security interest in compliance
with Article 9 of the Uniform Commercial Code, other than
acceptance of collateral in full or partial satisfaction
of the obligation it secures.
(f) A transfer is not voidable under subsection (b) of
Section 6:
(1) to the extent the insider gave new value to or for
the benefit of the debtor after the transfer was made,
except to the extent unless the new value was secured by a
valid lien;
(2) if made in the ordinary course of business or
financial affairs of the debtor and the insider; or
(3) if made pursuant to a good-faith effort to
rehabilitate the debtor and the transfer secured present
value given for that purpose as well as an antecedent debt
of the debtor.
(g) The following rules determine the burden of proving
matters referred to in this Section:
(1) A party that seeks to invoke subsection (a), (d),
(e), or (f) has the burden of proving the applicability of
that subsection.

HB0030 - 31 - LRB104 02886 LNS 12896 b
(2) Except as otherwise provided in paragraphs (3) and
(4), the creditor has the burden of proving each
applicable element of subsection (b) or (c).
(3) The transferee has the burden of proving the
applicability to the transferee of item (i) or (ii) of
subparagraph (B) of paragraph (1) of subsection (b).
(4) A party that seeks adjustment under subsection (c)
has the burden of proving the adjustment.
(h) The standard of proof required to establish matters
referred to in this Section is preponderance of the evidence.
(Source: P.A. 86-814.)
(740 ILCS 160/10) (from Ch. 59, par. 110)
Sec. 10. Extinguishment of claim for relief. A claim for
relief cause of action with respect to a fraudulent transfer
or obligation under this Act is extinguished unless action is
brought:
(a) under paragraph (1) of subsection (a) of Section
5, not later than within 4 years after the transfer was
made or the obligation was incurred or, if later, not
later than within one year after the transfer or
obligation was or could reasonably have been discovered by
the claimant;
(b) under paragraph (2) of subsection (a) of Section 5
or subsection (a) of Section 6, not later than within 4
years after the transfer was made or the obligation was

HB0030 - 32 - LRB104 02886 LNS 12896 b
incurred; or
(c) under subsection (b) of Section 6, not later than
within one year after the transfer was made or the
obligation was incurred.
(Source: P.A. 86-814.)
(740 ILCS 160/10.1 new)
Sec. 10.1. Governing law.
(a) In this Section, the following rules determine a
debtor's location:
(1) A debtor who is an individual is located at the
individual's principal residence.
(2) A debtor that is an organization and has only one
place of business is located at its place of business.
(3) A debtor that is an organization and has more than
one place of business is located at its chief executive
office.
(b) A claim for relief in the nature of a claim for relief
under this Act is governed by the local law of the jurisdiction
in which the debtor is located when the transfer is made or the
obligation is incurred.
(740 ILCS 160/10.2 new)
Sec. 10.2. Application to series organization.
(a) In this Section:
(1) "Protected series" means an arrangement, however

HB0030 - 33 - LRB104 02886 LNS 12896 b
denominated, created by a series organization that,
pursuant to the law under which the series organization is
organized, has the characteristics set forth in paragraph
(2).
(2) "Series organization" means an organization that,
pursuant to the law under which it is organized, has the
following characteristics:
(A) The organic record of the organization
provides for creation by the organization of one or
more protected series, however denominated, with
respect to specified property of the organization, and
for records to be maintained for each protected series
that identify the property of or associated with the
protected series.
(B) Debt incurred or existing with respect to the
activities of, or property of or associated with, a
particular protected series is enforceable against the
property of or associated with the protected series
only, and not against the property of or associated
with the organization or other protected series of the
organization.
(C) Debt incurred or existing with respect to the
activities or property of the organization is
enforceable against the property of the organization
only, and not against the property of or associated
with a protected series of the organization.

HB0030 - 34 - LRB104 02886 LNS 12896 b
(b) A series organization and each protected series of the
organization is a separate person for purposes of this Act,
even if for other purposes a protected series is not a person
separate from the organization or other protected series of
the organization.
(740 ILCS 160/14 new)
Sec. 14. Relation to the Electronic Signatures in Global
and National Commerce Act. This Act modifies, limits, or
supersedes the Electronic Signatures in Global and National
Commerce Act, 15 U.S.C. Section 7001 et seq., but does not
modify, limit, or supersede Section 101(c) of that Act, 15
U.S.C. Section 7001(c), or authorize electronic delivery of
any of the notices described in Section 103(b) of that Act, 15
U.S.C. Section 7003(b).
Section 15. The Illinois Trust Code is amended by changing
Sections 1332 and 1335 as follows:
(760 ILCS 3/1332)
Sec. 1332. Creditor claim: general power created by
powerholder.
(a) In this Section, "power of appointment created by the
powerholder" includes a power of appointment created in a
transfer by another person to the extent the powerholder
contributed value to the transfer.

HB0030 - 35 - LRB104 02886 LNS 12896 b
(b) Appointive property subject to a general power of
appointment created by the powerholder is subject to a claim
of a creditor of the powerholder or of the powerholder's
estate to the extent provided in the Uniform Voidable
Transactions Fraudulent Transfer Act.
(c) Subject to subsection (b), appointive property subject
to a general power of appointment created by the powerholder
is not subject to a claim of a creditor of the powerholder or
the powerholder's estate to the extent the powerholder
irrevocably appointed the property in favor of a person other
than the powerholder or the powerholder's estate.
(d) Subject to subsections (b) and (c), and
notwithstanding the presence of a spendthrift provision or
whether the claim arose before or after the creation of the
power of appointment, appointive property subject to a general
power of appointment created by the powerholder is subject to
a claim of a creditor of:
(1) the powerholder, to the same extent as if the
powerholder owned the appointive property, if the power is
presently exercisable; and
(2) the powerholder's estate, to the extent the estate
is insufficient to satisfy the claim and subject to the
right of a decedent to direct the source from which
liabilities are paid, if the power is exercisable at the
powerholder's death.
(Source: P.A. 101-48, eff. 1-1-20.)

HB0030 - 36 - LRB104 02886 LNS 12896 b
(760 ILCS 3/1335)
Sec. 1335. Creditor claim: nongeneral power.
(a) Except as otherwise provided in subsections (b) and
(c), appointive property subject to a nongeneral power of
appointment is exempt from a claim of a creditor of the
powerholder or the powerholder's estate.
(b) Appointive property subject to a nongeneral power of
appointment is subject to a claim of a creditor of the
powerholder or the powerholder's estate to the extent that the
powerholder owned the property and, reserving the nongeneral
power, transferred the property in violation of the Uniform
Voidable Transactions Fraudulent Transfer Act.
(c) If the initial gift in default of appointment is to the
powerholder or the powerholder's estate, a nongeneral power of
appointment is treated for purposes of this Section as a
general power.
(Source: P.A. 101-48, eff. 1-1-20.)
HB0030 - 37 - LRB104 02886 LNS 12896 b
INDEX
Statutes amended in order of appearance