54-8A-1. Definitions. Terms used in this chapter mean:

(1) "Affiliate,"

(i) Any person who directly or indirectly owns, controls, or holds with power to vote, twenty percent or more of the outstanding voting securities of the debtor, other than a person who holds the securities:

(A) As a fiduciary or agent without sole discretionary power to vote the securities; or

(B) Solely to secure a debt, if the person has not exercised the power to vote;

(ii) Any corporation twenty percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor or a person who directly or indirectly owns, controls, or holds, with power to vote, twenty percent or more of the outstanding voting securities of the debtor, other than a person who holds the securities:

(A) As a fiduciary or agent without sole power to vote the securities; or

(B) Solely to secure a debt, if the person has not in fact exercised the power to vote;

(iii) Any person whose business is operated by the debtor under a lease or other agreement, or any person substantially all of whose assets are controlled by the debtor; or

(iv) Any person who operates the debtor's business under a lease or other agreement or controls substantially all of the debtor's assets;

(2) "Asset," any property of a debtor, but the term does not include:

(i) Property to the extent it is encumbered by a valid lien;

(ii) Property to the extent it is generally exempt under nonbankruptcy law; or

(iii) Any interest in property held in tenancy by the entireties to the extent it is not subject to process by a creditor holding a claim against only one tenant;

(3) "Claim," any right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured;

(4) "Creditor," any person who has a claim;

(5) "Debt," liability on a claim;

(6) "Debtor," any person who is liable on a claim;

(7) "Insider,"

(i) If the debtor is an individual:

(A) Any relative of the debtor or of a general partner of the debtor;

(B) Any partnership in which the debtor is a general partner;

(C) Any general partner in a partnership described in clause (B); or

(D) Any corporation of which the debtor is a director, officer, or person in control;

(ii) If the debtor is a corporation:

(A) Any director of the debtor;

(B) Any officer of the debtor;

(C) Any person in control of the debtor;

(D) Any partnership in which the debtor is a general partner;

(E) Any general partner in a partnership described in clause (D); or

(F) Any relative of a general partner, director, officer, or person in control of the debtor;

(iii) If the debtor is a partnership:

(A) Any general partner in the debtor;

(B) Any relative of a general partner in, a general partner of, or a person in control of the debtor;

(C) Another partnership in which the debtor is a general partner;

(D) Any general partner in a partnership described in clause (C); or

(E) Any person in control of the debtor;

(iv) Any affiliate, or any insider of an affiliate as if the affiliate were the debtor; and

(v) Any managing agent of the debtor;

(8) "Lien," any charge against or an interest in property to secure payment of a debt or performance of an obligation, and includes any security interest created by agreement, any judicial lien obtained by legal or equitable process or proceedings, any common-law lien, or any statutory lien;

(9) "Person," an individual, partnership, limited liability company, corporation, association, organization, government or governmental subdivision or agency, business trust, estate, trust, or any other legal or commercial entity;

(10) "Property," anything that may be the subject of ownership;

(11) "Relative," any individual related by consanguinity within the third degree as determined by the common law, a spouse, or an individual related to a spouse within the third degree as so determined, including an individual in an adoptive relationship within the third degree;

(12) "Transfer," any mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, including payment of money, release, lease, and creation of a lien or other encumbrance;

(13) "Valid lien," any lien that is effective against the holder of a judicial lien subsequently obtained by legal or equitable process or proceedings.Source: SL 1987, ch 365, § 1; SL 1994, ch 351, § 152.