33-102. Every gift, grant or conveyance of lands, tenements, hereditaments, rents, goods or chattels, and every bond, judgment or execution, made or obtained with intent to hinder, delay or defraud creditors of their just and lawful debts or damages, or to defraud or to deceive the person or persons who shall purchase such lands, tenements, hereditaments, rents, goods or chattels, shall be deemed utterly void and of no effect.
History: G.S. 1868, ch. 43, ยง 2; October 31; R.S. 1923, 33-102.
Law Review and Bar Journal References:
Fraudulent conveyances, F. J. Moreau, 11 J.B.A.K. 205, 209 (1943).
Cited in comment, 11 K.L.R. 375, 379 n. 34 (1963).
Creditor's remedies under civil procedure code in case of fraudulent conveyance, Charles L. Frickey, 17 K.L.R. 501, 509, 511 (1969).
"Professional Liability Insurance: Implication of Termination," Wayne T. Stratton, 77 J.K.M.S. 255, 260(1976).
"Will Substitutes in Kansas," Jana J. Deines and Michael E. McMahon, 23 W.L.J. 132, 139 (1983).
"The Kansas Uniform Fraudulent Transfer Act," Leon B. Graves, 68 J.K.B.A. No. 6, 34 (1999).
CASE ANNOTATIONS
1. Fraud in attachment is mixed question of law and fact. Dry Goods Co. v. Zeigler, 2 Kan. App. 296, 42 P. 592.
2. Creditor attacking conveyance of realty must show prejudice. Bradley v. Larkin, 5 Kan. App. 11, 47 P. 315.
3. Execution on judgment unnecessary to creditor's bill to annul conveyance. Metzger v. Burnett, 5 K.A. 374, 48 P. 599.
4. Transfer fraudulent in part is void in toto. Kayser v. Heavenrich, 5 Kan. 324; Wallach v. Wylie, as Sheriff, 28 Kan. 138, 153; Marbourg v. L. C. M. F. G. Co., 32 Kan. 629, 5 P. 181; Winstead, Sheriff, v. Hulme, 32 Kan. 568, 4 P. 994; Hughes v. Shull, 33 Kan. 127, 5 P. 414; Bush v. T. G. Bush & Co., 33 Kan. 556, 6 P. 794; Miller v. Krueger, 36 Kan. 344, 13 P. 641.
5. Assignment by insolvent for benefit of creditors held void. Seibert and Lykins v. Thompson, 8 Kan. 65, 69.
6. Voluntary conveyance of exempt property is valid. Arthur v. Wallace, 8 Kan. 267.
7. Bona fide purchaser ignorant of fraudulent intent obtains good title. Diefendorf v. Oliver, 8 Kan. 365; Wilson v. Fuller, 9 Kan. 176, 187; Cuendet v. Lahmer, 16 Kan. 527; Avery v. Eastes, 18 Kan. 505; Dodd, Brown & Co. v. Hills & Kramer, 21 Kan. 707; Frankhouser v. Ellett, 22 Kan. 127, 148. (Limited: Richardson v. Johnes, 56 Kan. 501, 504, 43 P. 1127); Randall v. Shaw, 28 Kan. 419; Tootle, Hosea & Co. v. Coldwell, 30 Kan. 125, 134, 1 P. 329; Farlin v. Sook, 30 Kan. 401, 1 P. 123. (Questioned: Grocer Co. v. Alleman, 81 Kan. 543, 546, 106 P. 460. Rehearing denied: 81 Kan. 900, 106 P. 997); Bailey v. Kansas Mfg, Co., 32 Kan. 73, 78, 3 P. 756; Doggett, Bassett, Hills & Co. v. Bell & Stevens, 32 Kan. 298, 4 P. 292.
8. Voluntary assignment by insolvent in trust for creditors is void. Clark v. Robbins, 8 Kan. 574.
9. Payment by husband of loan by wife is not fraudulent. Monroe v. May, Weil & Co., 9 Kan. 466.
10. Transaction between husband and wife considered. Robinson v. Melvin, 14 Kan. 484; Sproul v. Atchison National Bank, 22 Kan. 336; Cooper v. National Bank, 40 Kan. 5, 18 P. 937; DeFord v. Nye, 40 Kan. 665, 20 P. 481; Dempster v. Bundy, 64 Kan. 444, 67 P. 816; National Bank v. Croco, 46 Kan. 629, 26 P. 942.
11. Debtor in good faith may prefer creditors. Avery v. Eastes, 18 Kan. 505; Arn v. Hoerseman, 26 Kan. 413; Randall v. Shaw, 28 Kan. 422; Bishop v. Jones, 28 Kan. 680; Harris & Co. v. Capell, 28 Kan. 117; Kelsey, Roberson & Co. v. Harrison, 29 Kan. 143; Tootle, Hosea & Co. v. Coldwell, 30 Kan. 125, 1 P. 329; McDonald v. Gaunet, 30 Kan. 693, 2 P. 871; Bailey v. Kansas Mfg. Co., 32 Kan. 73, 80, 3 P. 756; Kennedy v. Powell, 34 Kan. 22, 7 P. 606.
12. Verdict finding fraudulent intent not disturbed unless plainly wrong. Crapster v. Williams, 21 Kan. 109; Gollober v. Martin, Sheriff, 33 Kan. 252, 6 P. 267.
13. Evidence tending to show good faith improperly excluded. Locke v. Hedrick, 24 Kan. 763, 765.
14. Conveyance with specific fraudulent intent is void against subsequent creditor. McPherson v. Kingsbaker, 22 Kan. 646.
15. Voluntary conveyance to defraud existing creditors is void. Sheppard v. Thomas, 24 Kan. 780.
16. Bona fide voluntary conveyance not void as to subsequent creditors. Sheppard v. Thomas, 24 Kan. 780.
17. Fraudulent mortgage is ground of attachment by creditor. Taylor v. Kuhuke, 26 Kan. 132.
18. Transactions between parent and child considered. Kurtz v. Miller, 26 Kan. 314; Beavers v. McKinley, 50 Kan. 602, 32 P. 363, 33 P. 359; Harrison v. Shaffer, 60 Kan. 176, 55 P. 881; Mitchell v. Simpson, 62 Kan. 343, 63 P. 440; Hollinger v. Bank, 69 Kan. 519, 77 P. 263; Bank v. Lawrence, 86 Kan. 171, 175, 119 P. 535.
19. Necessary to prove fraudulent intent where transfer is not voluntary. Kurtz v. Miller, 26 Kan. 314.
20. Verdict finding fraudulent intent not disturbed unless plainly wrong. Rozell v. Denver L. W & C. Co., 26 Kan. 548.
21. Transactions between attorney and client considered. Yeamans v. James, 27 Kan. 195; Wallach v. Wylie, as Sheriff, 28 Kan. 138.
22. Homestead purchased by insolvent liable for prior debts of purchaser. Long Brothers v. Murphy, 27 Kan. 375.
23. Mortgage fraud in toto where partly covering fictitious indebtedness. Wallach v. Wylie, as Sheriff, 28 Kan. 138, 153.
24. Attaching creditor not defeated by sale under fraudulent mortgage. Wallach v. Wylie, as Sheriff, 28 Kan. 138, 153.
25. Bona fide sale of one's property to pay his debts is valid. Bishop v. Jones, 28 Kan. 680.
26. Where debtor sells to pay debts he may prefer creditors. Bishop v. Jones, 28 Kan. 680.
27. Bona fide gift by unindebted husband to wife is valid. Tootle, Hosea & Co. v. Coldwell, 30 Kan. 125, 1 P. 329.
28. Bona fide purchaser protected even though part of consideration is support of solvent grantor. Farlin v. Sook, 30 Kan. 401, 1 P. 123. Questioned: Grocer Co. v. Alleman, 81 Kan. 543, 546, 106 P. 460. Rehearing denied: 81 Kan. 900, 106 P. 997.
29. Sale to avoid support of illegitimate child defrauds creditors. Schuster, Tootle & Co. v. Stout & Wingert, 30 Kan. 529, 2 P. 642.
30. Bona fide sale or gift of exempt property is valid against creditors. Mull v. Jones, 33 Kan. 112, 5 P. 388.
31. Mere knowledge by vendee of indebtedness does not render a sale fraudulent. Baughman, Sheriff, v. Penn, 33 Kan. 504, 6 P. 890.
32. Fraud is never presumed but must be proved. Baughman, Sheriff, v. Penn, 33 Kan. 504, 6 P. 890.
33. Burden of proof is upon those attacking transfers. Baughman, Sheriff, v. Penn, 33 Kan. 504, 6 P. 890.
34. Creditors cannot assail reformation of mortgage misdescribing land. Bush v. T. G. Bush & Co., 33 Kan. 556, 6 P. 794.
35. Mere fact that mortgage secures excessive indebtedness not conclusive. Bush v. T. G. Bush & Co., 33 Kan. 556, 6 P. 794.
36. Transfer to children considered and held fraudulent as to judgment creditors. Lewis v. Lindscott, 37 Kan. 379, 15 P. 158.
37. Assignment to wife, as preferred creditor, covering valid claim, valid. Cooper v. National Bank, 40 Kan. 5, 18 P. 937.
38. Where purchaser from insolvent knows fraudulent intent sale is void. Davis v. McCarthy, 40 Kan. 18, 19 P. 356.
39. Assignment for creditors reserving part of property is void. Grocery Co. v. Records, 40 Kan. 119, 19 P. 346.
40. Bona fide preference of creditors is valid. DeFord v. Nye, 40 Kan. 665, 20 P. 481.
41. May prefer wife and daughter, as creditors, for services rendered. DeFord v. Nye, 40 Kan. 665, 20 P. 481.
42. Deeds by debtor; when good against subsequent creditors; failure to record. National Bank v. Jaffray, 41 Kan. 694, 21 P. 242.
43. Conveyance to son of purchaser held binding. Wetherbee v. Cockrell, 44 Kan. 380, 24 P. 417.
44. Direct testimony by seller as to intent is competent. Gardom v. Woodward, 44 Kan. 758, 25 P. 199; Bice v. Rogers, 52 Kan. 207, 34 P. 796.
45. Conveyance to minor son for services is voluntary, without consideration, void. Stumbaugh v. Anderson, 46 Kan. 541, 26 P. 1045.
46. Transfer to attorney for future legal services held void. National Bank v. Croco, 46 Kan. 629, 632, 26 P. 942.
47. Rights of bona fide purchaser in fraudulent sale considered. Work v. Coverdale, 47 Kan. 307, 27 P. 984.
48. Insolvency is important element in determining intent. Dodson v. Cooper, 50 Kan. 680, 32 P. 370.
49. Inadequacy of price is evidence of fraud. Dodson v. Cooper, 50 Kan. 680, 32 P. 370.
50. Creditor procuring transfer to himself to defeat other creditors not protected. Schram v. Taylor, 51 Kan. 547, 33 P. 315.
51. Creditor in good faith may take property for debt at fair value. Schram v. Taylor, 51 Kan. 547, 33 P. 315.
52. Receivership of corporation proper to prevent fraudulent disposition. In re Lewis, Petitioner, 52 Kan. 660, 35 P. 287.
53. Execution creditor may defend against fraudulent mortgage. National Bank v. Barkalow, 53 Kan. 68, 35 P. 796.
54. Assignee for creditors entitled to other property simultaneously conveyed. Walton v. Eby, 53 Kan. 257, 261, 36 P. 332.
55. Burden of proof is upon persons attacking transfer. Hasie v. Conner, 53 Kan. 713, 721, 37 P. 128.
56. Purchaser ignorant of fraudulent intent obtains good title. Hasie v. Connor, 53 Kan. 713, 721, 37 P. 128.
57. Creditor taking property for debt at fair value protected. Hasie v. Connor, 53 Kan. 713, 721, 37 P. 128.
58. Purchaser having knowledge of fraudulent intent is not protected. Martin v. Marshall, 54 Kan. 147, 37 P. 977.
59. Sale of homestead cannot operate as fraud upon creditors. Roser v. National Bank, 56 Kan. 129, 42 P. 341.
60. Direct evidence by vendee as to intent is competent. Richolson v. Freeman, 56 Kan. 463, 43 P. 772.
61. Instructions set out, considered and held erroneous; circumstantial evidence. Morse v. Ryland, 58 Kan. 250, 48 P. 957.
62. Confession of judgment by insolvent held void. Manley v. Larkin, 59 Kan. 528, 531, 53 P. 859.
63. In ejectment, title of defendant may be proved fraudulent. Rauer v. Thomas, 60 Kan. 71, 55 P. 285.
64. Corporation may in good faith prefer some creditors over others. Plow Co. v. Rude, 60 Kan. 145, 55 P. 848.
65. Fraudulent conveyance is void as to creditors and their grantees. Thomas v. Rauer, 62 Kan. 568, 64 P. 80.
66. Creditor may set aside fraudulent conveyance of decedent. Barker v. Battey, 62 Kan. 584, 64 P. 75.
67. Mortgage executed simultaneously with assignment for creditors is void. Marlin v. Teichgraeber, 63 Kan. 521, 66 P. 234.
68. Assignment of judgment held fraudulent. Robinson's Executors v. Blood's Heirs, 64 Kan. 290, 294, 67 P. 842.
69. Burden of proof rests upon person attacking transfer. Hartman v. Hosmer, 65 Kan. 595, 70 P. 598; Culp v. Mulvane, 66 Kan. 143, 71 P. 273.
70. Purchaser charged with knowledge by facts arousing suspicion. Hartman v. Hosmer, 65 Kan. 595, 70 P. 598.
71. Creditors' suit held triable by court. Culp v. Mulvane, 66 Kan. 143, 71 P. 273.
72. Two-year limitation of actions applied. Donaldson v. Jacobitz, 67 Kan. 244, 72 P. 846; Harrod v. Farrar, 68 Kan. 153, 74 P. 624.
73. Fraud in proceedings to vacate judgment considered. Johnson v. Richardson, 67 Kan. 521, 73 P. 113.
74. Transfer to relative not participating in fraud upheld. Parmenter v. Lomax, 68 Kan. 61, 74 P. 634.
75. Deed, made to hinder and defraud creditor, is void. Bank v. Lawrence, 86 Kan. 171, 175, 119 P. 535.
76. Fraudulent transfer to relative held void. Kline v. Cowan, 84 Kan. 772, 776, 115 P. 587; Buck v. Vickers, 93 Kan. 766, 768, 145 P. 904.
77. Lands recoverable only after judgment or by attachment. Knox v. Farguson, 97 Kan. 487, 155 P. 929.
78. Transfer of homestead without consideration is not fraud on creditors. Scott v. Rodgers, 97 Kan. 438, 155 P. 961.
79. Transfer to secure attorney's fees held valid. Bank v. Greene, 102 Kan. 202, 207, 170 P. 391.
80. Transfer securing future claims not necessarily fraudulent. Bank v. Greene, 102 Kan. 202, 207, 170 P. 391.
81. Transfer violating oral agreement held to create equitable mortgage. Farmers State Bank v. St. Aubyn, 120 Kan. 66, 69, 242 P. 466.
82. Sufficient evidence of fraudulent intent to defeat demurrer. First Nat'l Bank v. Lovett, 123 Kan. 405, 408, 256 P. 147.
83. Cited as being restriction on alienation of real property. Glenn v. Callahan, 125 Kan. 44, 48, 262 P. 583.
84. Under facts stated transfer violated section. Jennings & Sons Tire and Accessory Co. v. Farmer, 127 Kan. 164, 272 P. 167.
85. Voluntary conveyance defrauds creditors if insufficient property retained to pay debts. Security Benefit Ass'n v. Swartz, 141 Kan. 227, 231, 40 P.2d 433.
86. Time of transfer is not conclusive of fraud. Johnson v. Collins, 142 Kan. 52, 45 P.2d 575.
87. May prefer son and daughter, as creditors, for valid indebtedness. Peoples State Bank v. Dierking, 143 Kan. 617, 56 P.2d 85.
88. Debtor in good faith may prefer creditor relatives. Exchange Nat'l Bank v. Warne, 143 Kan. 797, 57 P.2d 46.
89. Mortgage given greatly in excess of debt held fraudulent. Bennett v. Kaul, 144 Kan. 773, 62 P.2d 858.
90. Mortgage given in good faith valid though property value exceeds debt. First Nat'l Bank v. Cottingim. 145 Kan. 330, 65 P.2d 293.
91. Evidence sufficient to sustain finding deed to wife void. Achorn v. Parker, 145 Kan. 854, 67 P.2d 561.
92. Transactions between parent and child considered. State Bank of Stella v. Moritz, 146 Kan. 23, 69 P.2d 15.
93. Conveyance to daughter held fraudulent in contemplation of law. Security Benefit Ass'n v. Swartz, 146 Kan. 267, 70 P.2d 16.
94. Deed to daughters held made in defraud of creditors; void. Stephenson v. Wilson, 147 Kan. 261, 267, 76 P.2d 810.
95. Transactions between relatives are subject to stricter scrutiny than others. Stephenson v. Wilson, 147 Kan. 261, 265, 267, 76 P.2d 810.
96. Questions of bona fide debt, consideration, value of lands, intent to defraud are questions of fact. Bank of Inman v. Graves, 148 Kan. 468, 83 P.2d 666.
97. Right of subsequent creditor to attack deed; proof of fraud. Sawyer v. Goyette, 153 Kan. 243, 109 P.2d 157.
98. Action to set aside conveyance accrues, when; limitation of actions; barred. Causemaker v. DeRoo, 153 Kan. 648, 113 P.2d 85.
99. Assignment and mortgage received as security for actual loan valid. Davidson v. McKown, 157 Kan. 217, 225, 139 P.2d 421.
100. Compared with K.S.A. 33-101; applies to conveyances made with intent to defraud. Herd v. Chambers. 158 Kan. 614, 628, 149 P.2d 583.
101. Action to set aside fraudulent conveyance; venue exclusively in county where land situate. Raynolds v. Row, 184 Kan. 791, 794, 339 P.2d 358.
102. Assignment of possible proceeds due from pending lawsuit not violative hereof. Carson v. Chevron Chemical Co., 6 Kan. App. 2d 776, 790, 635 P.2d 1248 (1981).
103. Fraud may be shown by conduct and appearance, transaction details and surrounding circumstances; six indicia of fraud outlined. Credit Union of Amer. v. Myers, 234 Kan. 773, 778, 676 P.2d 99 (1984).
104. Cited; "badges of fraud" discussed; wealth of substantial evidence required new trial on issue. Koch Engineering Co. v. Faulconer 239 Kan. 101, 111, 716 P.2d 180 (1986).
105. Cited; construction of restriction against assignment, equity interest as security for debt examined. First Bank & Trust v. Novak, 12 Kan. App. 2d 407, 747 P.2d 850 (1987).
106. Cited; badges or indicia of fraud, transfer of property between members of a family examined. City of Arkansas City v. Anderson, 243 Kan. 627, 631, 762 P.2d 183 (1988).
107. Action against transfer to delay or hinder creditors as not barred by nonclaim statute (K.S.A. 59-2239) determined. Gorham State Bank v. Sellens, 244 Kan. 688, 690, 772 P.2d 793 (1989).
108. Grantee's participation in or knowledge (actual or constructive) of grantor's intent to defraud creditors is necessary element to set aside conveyance. In Re Kennedy, 118 B.R. 792 (1990).
109. Facts constituting constructive notice and fraudulent conveyances sufficient to defeat a claim of bona fide purchaser examined. City of Arkansas City v. Anderson, 15 Kan. App. 2d 174, 804 P.2d 1026 (1991).
110. Motion to set aside writ of execution based on fraud filed within one year of order for writ held timely. Wallace, Saunders, Austin, Brown & Enochs, Chtd. v. Louisburg Grain Co., 16 Kan. App. 2d 30, 41, 818 P.2d 805 (1991).
111. Motion timely filed under K.S.A. 33-102, but was not proper under K.S.A. 60-260, because not party to execution order. Wallace, Saunders, Austin, Brown & Enochs, Chtd. v. Louisburg Grain Co., 250 Kan. 54, 59, 824 P.2d 933 (1992).
112. Discussion of jury instructions given in a fraudulent conveyance action. Turon State Bank v. Estate of Frampton, 17 Kan. App. 2d 829, 832, 845 P.2d 79 (1993).
113. Whether judgment debtor's transfer of assets to parent corporation was fraudulent conveyance examined. Printed Media Services v. Solna Web, Inc., 838 F. Supp. 1453, 1457 (1993).
114. Whether punitive damages may be awarded in action to set aside fraudulent conveyance examined. Golconda Screw, Inc. v. West Bottoms Ltd., 20 Kan. App. 2d 1002, 1004, 894 P.2d 260 (1995).
115. Payment by sole shareholder of insolvent corporation of $655,000 to himself was fraudulent conveyance and voidable by the bankruptcy trustee. Gaddis v. Allison, 234 B.R. 805, 813 (1999).
116. Six factors of fraud discussed in determining whether conveyance is fraudulent and void. In re Krause, 637 F.3d 1160 (10 th Cir. 2011).
117. Taxpayer's transfer of assets to his children's trusts was fraudulent, subjecting assets to federal tax lien against taxpayer. In re Krause, 637 F.3d 1160 (10 th Cir. 2011).
118. Fraudulent intent to avoid transfer may be established by circumstantial evidence and conduct, by details of the transaction, and by totality of the surrounding circumstances. In re Convenience Xpress, Inc. 508 B.R. 215 (Bkrtcy. D. Kan. 2014).
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