Herup v. First Boston Financial, LLC

OPINION

By the Court, Hardesty, J.:

In this case, we consider whether the Uniform Fraudulent Transfer Act (UFTA), NRS Chapter 112, was properly applied to a se cured creditors’ transfer of assets to a third party following the secured creditors’ improper repossession of their business. We also take this opportunity to examine the standard to be used in determining whether a transferee has a good faith defense to a fraudulent transfer action under the UFTA. We adopt an objective, rather than a subjective, inquiry into whether the transferee knew or should have known of the debtor’s fraudulent…