Issue: What is necessary for fraudulent transfer claim to be considered viable in Minnesota?
|Area of Law:||Bankruptcy & Creditors Rights|
|Keywords:||Fraudulent transfer claim; Right to payment|
|Cited Statutes:||Minnesota Uniform Fraudulent Transfer Act § 513.45(b); Minn. Stat. § 513.41(3)|
In order for a Bank to have a viable fraudulent transfer claim under § 513.45(b) of the Minnesota Uniform Fraudulent Transfer Act (MUFTA), the Bank must have a proper claim. A “claim” exists only if the creditor challenging the transfer had a “right to payment.” (citing Minn. Stat. § 513.41(3)). A “right to payment” means nothing more or less than an enforceable obligation, see id. (citing Cohen v. De la Cruz, 523 U.S. 213, 218 (1998)). See id. at 4 (citing United States v. Vanornum, 912 F.2d 1023, 1026 (8th Cir. 1990)).