SB 25-133

Senate Bill 25-133, known as the Colorado Voidable Transactions Act, updates and renames existing laws about fraudulent transactions in Colorado. It changes how these transactions are referred to and aligns state law with national standards for dealing with such issues. The bill also clarifies who has the burden of proof in legal disputes over these transactions and which laws apply based on where a debtor is located. Since it has been signed into law, this act will now affect anyone involved in financial transactions that could be considered fraudulent or voidable under Colorado’s new standards.

Official Summary

Under current law, fraudulent transactions are controlled by the "Colorado Uniform Fraudulent Transfers Act". The act makes updates to the "Colorado Uniform Fraudulent Transfers Act" and renames it as the "Colorado Voidable Transactions Act". The act changes references in current statute from "fraudulent transfers" to "voidable transactions". The act changes Colorado law to align with uniform law regarding voidable transactions and updates some of the definitions and terminology used in current statute. The act establishes burdens of proof and evidentiary requirements for various claims related to voidable transactions. The act also establishes which jurisdictional laws control certain types of claims based on the location of a debtor. (Note: This summary applies to this bill as enacted.)

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