Fraudulent conveyance

(1) Where it is proved beyond a reasonable doubt by a judgment creditor that, (a) the property transferred to the limited liability company by a member was so transferred by or on behalf of the member with intent to defraud that particular judgment creditor; (b) such has not presented any supervening legitimate purpose for such transfer; and (c) such member was insolvent at the time of such transfer, then such transfer shall not be void or voidable, but the limited liability company shall be liable to satisfy the creditor’s claim to the extent of the interest that the member had in the property prior to transfer including any accumulation to the property after such transfer. (2) No action or proceeding shall lie in connection with a transfer to a limited liability company in pursuance of subsection (1) of this section or otherwise and a transfer to a limited liability company shall not be fraudulent as against a particular creditor of a member after the earlier of, (a) the expiration of one year from the date of the formation of the limited liability company; or (b) if such a transfer takes place after two years after the earliest cause of action arose. (3) Where a limited liability company is liable to satisfy a creditor’s claim in the manner provided in subsection (1) of this section, that creditor’s rights to recovery shall be limited to the property transferred to the limited liability company or to the proceeds of that property to the exclusion of any claim, right or action against any member or any other property of the (4) For the purposes of this section, the burden of proof of the member’s intent to defraud the creditor lies with the (5) The provisions of this section shall apply to all fraudulent conveyances, actions and proceedings brought in any court in Belize, however described, against any person (whether a party to the proceeding or not) and the remedy conferred by sub-section (1) of this section shall be the sole and exclusive remedy available in such an action or proceeding to the exclusion of any other relief or remedy against any party to the action or proceeding. (6) Failure by a creditor to present all claims arising out of any controversy and join all parties with a material interest shall prevent that creditor from presenting such claims and bringing an action against such parties in a subsequent proceeding. (7) Every creditor shall, before bringing an action or proceeding against any limited liability company property governed by this Act, shall first deposit with the Supreme Court Registry an amount equal to half of the amount claimed or fifty thousand dollars, whichever is greater, for securing the payment of all costs as may become payable by the creditor. (8) As used in this section, “creditor” means a person who has obtained a judgment from the Supreme Court for specified monetary damages; “entity” means an incorporated association owned by one or more persons that have limited liability for the debts of the business, including a trust or foundation, that is formed or continued under the laws of any jurisdiction; 38 “insolvent” means that immediately after the transfer of the property to the limited liability company, the member’s liabilities exceeded his assets taking into consideration the fair market value of those assets and liabilities at that time; ‘intent to defraud’ means that an individual acts wilfully, and with the actual specific intent to deceive or cheat, for the purpose of causing financial loss to the particular creditor bringing the action, or to bring some financial gain to himself; the intent to defraud a creditor will not be imputed by reason only that the transfer, (i) was made to an insider or related party; (ii) was made without consideration; or (iii) made the member insolvent; “person” means an individual or entity; “transfer” means the conveyance or disposition of property from one person to another or the settlement or initial contribution to an entity, but does not include transfer in exchange for capital interest in a limited liability company.