HRS §651C-5
When transfers to old creditors are fraudulent
This section says when a debtor's transfer or debt is a fraud on creditors who were owed money before it happened. It covers two situations: getting less than fair value while insolvent, or giving to an insider while insolvent. It does not set penalties.
creditorsdebtors
The statute, as written — Transfers fraudulent as to present creditors
(a) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor becomes insolvent as a result of the transfer or obligation. (b) A transfer made by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for other than a present, reasonably equivalent value, the debtor was insolvent at that time, and the insider had reasonable cause to believe that the debtor was insolvent.
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