
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 28USC3302]

 
               TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE
 
                     PART VI--PARTICULAR PROCEEDINGS
 
             CHAPTER 176--FEDERAL DEBT COLLECTION PROCEDURE
 
           SUBCHAPTER D--FRAUDULENT TRANSFERS INVOLVING DEBTS
 
Sec. 3302. Insolvency

    (a) In General.--Except as provided in subsection (c), a debtor is 
insolvent if the sum of the debtor's debts is greater than all of the 
debtor's assets at a fair valuation.
    (b) Presumption.--A debtor who is generally not paying debts as they 
become due is presumed to be insolvent.
    (c) Calculation.--A partnership is insolvent under subsection (a) if 
the sum of the partnership's debts is greater than the aggregate, at a 
fair valuation, of--
        (1) all of the partnership's assets; and
        (2) the sum of the excess of the value of each general partner's 
    non-partnership assets over the partner's non-partnership debts.

    (d) Assets.--For purposes of this section, assets do not include 
property that is transferred, concealed, or removed with intent to 
hinder, delay, or defraud creditors or that has been transferred in a 
manner making the transfer voidable under this subchapter.
    (e) Debts.--For purposes of this section, debts do not include an 
obligation to the extent such obligation is secured by a valid lien on 
property of the debtor not included as an asset.

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104 Stat. 
4961.)
