New York Enacts New Fraudulent Transfer Law Effective April 4, 2020

On December 6, 2019, Governor Andrew Cuomo signed into law a new fraudulent transfer statute to replace the Uniform Fraudulent Conveyance Act ("UFCA"), which has been in place in New York since 1925. The new law, entitled the Uniform Voidable Transactions Act (the "UVTA"), is intended to modernize the existing statute and bring New York law in line with federal law and the law in most other states. The UVTA will become effective in New York on April 4, 2020. It will apply only to transactions on or after that date. Although numerous other states have adopted the UVTA, New York's adoption of the law is particularly notable because New York retained the UFCA over the years, even in the face of virtually every other state adopting the Uniform Fraudulent Transfer Act, the predecessor to the UVTA.