(a) As used in this section, the following terms have the following meanings: (1) âInsolventâ means: (A) With reference to a person other than a partnership, a financial condition such that the sum of the personâs debts is greater than all of the personâs property, at a fair valuation, exclusive of both of the following: (i) Property transferred, concealed, or removed with intent to hinder, delay, or defraud the personâs creditors. (ii) Property that is exempt from property of the estate pursuant to the election of the person made pursuant to Section 1801. (B) With reference to a partnership, financial condition such that the sum of the partnershipâs debts are greater than the aggregate of, at a fair valuation, both of the following: (i) All of the partnershipâs property, exclusive of property of the kind specified in clause (i) of subparagraph (A). (ii) The sum of the excess of the value of each general partnerâs separate property, exclusive of property of the kind specified in clause (ii) of subparagraph (A), over the partnerâs separate debts. (2) âInventoryâ means personal property leased or furnished, held for sale or lease, or to be furnished under a contract for service, raw materials, work in process, or materials used or consumed in a business, including farm products such as crops or livestock, held for sale or lease. (3) âInsiderâ means: (A) If the assignor is an individual, any of the following: (i) A relative of the assignor or of a general partner of the assignor. (ii) A partnership in which the assignor is a general partner. (iii) A general partner of the assignor. (iv) A corporation of which the assignor is a director, officer, or person in control. (B) If the assignor is a corporation, any of the following: (i) A director of the assignor. (ii) An officer of the assignor. (iii) A person in control of the assignor. (iv) A partnership in which the assignor is a general partner. (v) A general partner of the assignor. (vi) A relative of a general partner, director, officer, or person in control of the assignor. (C) If the assignor is a partnership, any of the following: (i) A general partner in the assignor. (ii) A relative of a general partner in, general partner of, or person in control of the assignor. (iii) A partnership in which the assignor is a general partner. (iv) A general partner of the assignor. (v) A person in control of the assignor. (D) An affiliate of the assignor or an insider of an affiliate as if the affiliate were the assignor. (E) A managing agent of the assignor. As used in this paragraph, the following terms have the following meanings: âRelativeâ means an individual related by affinity or consanguinity within the third degree as determined by the common law, or an individual in a step or adoptive relationship within the third degree. An âaffiliateâ means a person that directly or indirectly owns, controls, or holds, with power to vote, 20 percent or more of the outstanding voting securities of the assignor, or 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote by the assignor, excluding securities held in a fiduciary or agency capacity without sole discretionary power to vote, or held solely to secure a debt if the holder has not in fact exercised the power to vote, or a person who operates the business of the assignor under a lease or operating agreement or whose business is operated by the assignor under a lease or operating agreement. (4) âJudicial lienâ means a lien obtained by judgment, levy, sequestration, or other legal or equitable process or proceeding. (5) âNew valueâ means money or moneyâs worth in goods, services, or new credit, or release by a transferee of property previously transferred to the transferee in a transaction that is neither void nor voidable by the assignor or the assignee under any applicable law, but does not include an obligation substitute
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