Ralph S. Janvey

Summary

The Texas Supreme Court answered a certified question, holding that under the Texas Uniform Fraudulent Transfer Act a transferee satisfies the “reasonably equivalent value” element of the good‑faith defense by showing (1) full performance under a lawful arm‑length contract at fair market value, (2) the consideration had objective value at the time of the transfer, and (3) the exchange occurred in the ordinary course of business; the court rejected a creditor‑viewpoint‑only analysis even where the debtor operated a Ponzi scheme.