The Texas Supreme Court has answered a question certified to it by the United States Court of Appeals for the Fifth Circuit regarding what constitutes good faith under the Texas Uniform Fraudulent Transfer Act (TUFTA) by holding that when a transferee on inquiry notice attempts to use TUFTA’s affirmative defense that it acted in good faith to shield a transfer from the statute’s clawback provision it must show, at a minimum, that it investigated its suspicions diligently, and even if such investigation would be futile.
Read the whole article at Attorney At Law Magazine.