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Town House Dep}{\i\fs20\insrsid6701750 '}{\i\fs20\insrsid9666257 t. Stores v. Hi Sup Ahn, et. al.}{\fs20\insrsid9666257 , Opinion \tab Page }{\field{\*\fldinst {\fs20\insrsid9666257 PAGE }}{\fldrslt {\fs20\lang1024\langfe1024\noproof\insrsid7423983 10}}}{
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\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid9666257\charrsid7423983 IN THE SUPREME COURT OF GUAM}{\insrsid9666257\charrsid7423983 
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\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid7423983 {\b\insrsid9666257\charrsid7423983 TOWN HOUSE DEPARTMENT STORES, INC.}{\insrsid9666257\charrsid7423983 
\par Plaintiff-Appellant
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid9666257\charrsid7423983 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid7423983 {\b\insrsid9666257\charrsid7423983 vs.}{\insrsid9666257\charrsid7423983 
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\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid7423983 {\b\insrsid9666257\charrsid7423983 HI SUP AHN, CHUNG OK AHN, HI CHUNG AHN
\par JOHN L. AHN, and DAVID L. AHN}{\insrsid9666257\charrsid7423983 
\par Defendants-Appellees}{\insrsid7423983 
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\b\insrsid9666257\charrsid7423983 Filed:}{\b\insrsid7423983  }{\b\insrsid9666257\charrsid7423983 December 28, 2000}{\insrsid9666257\charrsid7423983 
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid9666257\charrsid7423983 Supreme Court Case No. CVA00-006
\par Superior Court Case No.}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 CV2022-98
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid9666257\charrsid7423983 Appeal from the Superior Court of Guam
\par Argued and submitted on October 25, 2000
\par Hag\'e5t\'f1a, Guam
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\par }{\ul\insrsid9666257\charrsid7423983 Appearing for the Plaintiff-Appellant}{\insrsid9666257\charrsid7423983 :
\par James M. Maher, Esq. 
\par MAHER & THOMPSON, P.C.
\par 140 Aspinall Ave., Ste. 201
\par Hag\'e5t\'f1a, Guam 96910
\par \cell 
\par }{\ul\insrsid9666257\charrsid7423983 Appearing for the Defendants-Appellees}{\insrsid9666257\charrsid7423983 :
\par David J. Highsmith, Esq.
\par The Law Office of David J. Highsmith, P.C.
\par Ste. 209, Union Bank Bldg.
\par 194 Hernan Cortes Ave.
\par Hag\'e5t\'f1a, Guam 96910\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid9666257\charrsid7423983 \trowd \irow0\irowband0\lastrow 
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\par BEFORE: BENJAMIN J. F. CRUZ, Chief Justice, PETER C. SIGUENZA, JR., Associate Justice, and JOHN A. MANGLONA, Designated Justice
\par 
\par }{\b\insrsid9666257\charrsid7423983 SIGUENZA, J.:}{\b\insrsid9666257 
\par }{\insrsid7423983\charrsid7423983 
\par }{\b\insrsid9666257\charrsid7423983 [1]}{\insrsid9666257\charrsid7423983 \tab After a bench trial, Town House Department Stores, Inc. (}{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid9666257\charrsid7423983 Town House}{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
) appeals the judgment of the Superior Court of Guam not to set aside certain transfers of real property as fraudulent. After}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
review of the record, with consideration of and due deference to the lower court}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 s findings of fact, we find th
at the trial court erred when it concluded that the challenged conveyances were not fraudulent and therefore (1) reverse its judgment; (2) order that judgment be entered for Town House;}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
and (3) remand for further proceedings.
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid7423983 {\b\insrsid9666257\charrsid7423983 I}{\b\insrsid7423983  }{\b\insrsid9666257\charrsid7423983 - BACKGROUND}{\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\b\insrsid9666257\charrsid7423983 [2]}{\insrsid9666257\charrsid7423983 \tab On December 9, 1994, Hi Sup Ahn, as president of T&K Development Corp. (}{\insrsid9666257\charrsid7423983 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 T&K}{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid9666257\charrsid7423983 ), executed a sales contract for the purchase of furniture from Town House at the price of three hundred twenty thousand dollars ($320,000.00). Between February and November, 1995, Town House had contacted Ahn regarding T&K
}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 s failure to make payments on the sales contract and informed him that continued failure to pay would result in the re
possession of the furniture and referral to an attorney for any deficiency. Around the same time, Hi Sup and Chung Ok Ahn had been experiencing serious financial difficulties.}{\cs15\super\insrsid9666257\charrsid7423983 \chftn {\footnote \pard\plain 
\qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\fs20\super\insrsid9666257 \chftn }{\fs20\insrsid9666257 
The record showed that between February and August 1995, Ahn was in default of  his mortgage with the United States Department of Housing and Urban Development; however, the default was subsequently cured in September of 1995.}}}{
\insrsid9666257\charrsid7423983  On December 29, 1995, the sales contract was restructured due to T&K}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 s inability to make the monthly paymen
ts. Hi Sup Ahn executed the revised contract on behalf of T&K.}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 He additionally executed a}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 personal guaranty of T&K}{\insrsid6701750\charrsid7423983 '}{
\insrsid9666257\charrsid7423983 s contract with Town House.}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [3]}{\insrsid9666257\charrsid7423983 \tab Throughout 1996, Hi Sup Ahn continued to experience financial difficulties and was unable to make payments 
on several loans and mortgages. By August of 1996, Hi Sup and Chung Ok Ahn were indebted for approximately five hundred forty two thousand dollars ($542,000.00).}{\cs15\super\insrsid9666257\charrsid7423983 \chftn {\footnote \pard\plain 
\qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\fs20\super\insrsid9666257 \chftn }{\i\fs20\insrsid9666257 See}{\fs20\insrsid9666257   mortgagee listed }{\i\fs20\insrsid9666257 
supra}{\fs20\insrsid9666257  note 1. In addition, the Ahns were also indebted to the United States Department of Agriculture, Farm Service Agency, Lee Roy King and Lee King Too.}}}{\insrsid9666257\charrsid7423983 
 On August 9, 1996, Ahn informed Town House that T&K would be unable to make payments according to its payment schedule. Ten days later, on August 19, 1996, the Ahns convey
ed all of their real property, consisting of interests in their Barrigada Heights residence and seven lots located in Ipan, to their three adult children Hi Chung Ahn, John L. Ahn, and David L. Ahn. The conveyances were accomplished by deeds of gift.}{
\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [4]}{\insrsid9666257\charrsid7423983 \tab On January 29, 1997, Town House filed a Complaint on the guaranty in }{\i\insrsid9666257\charrsid7423983 Town House Department Stores, Inc. v. Hi Sup Ahn}{
\insrsid9666257\charrsid7423983 , Superior Court of Guam Civil Case No. CV 0098-97. It successfully obtained a deficiency judgment against Hi Sup Ahn on June 30, 1998. The 
operative facts there were that Town House seized the furniture and sold it to another. Town House sued for the deficiency and the court awarded it the sums of $136,184.44 in deficiency and $22,115.41 in interest plus reasonable costs and attorneys}{
\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983  fees. 
On October 10, 2000, during the pendency of the instant appeal, the case was reversed and remanded by this court for a determination of whether the re-sale price was fair and reasonable. }{\i\insrsid9666257\charrsid7423983 Town House Dep}{
\i\insrsid6701750\charrsid7423983 '}{\i\insrsid9666257\charrsid7423983 t. Stores, Inc. v. Ahn}{\insrsid9666257\charrsid7423983 , 2000 Guam 29, }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid9666257\charrsid7423983  15.}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [5]}{\insrsid9666257\charrsid7423983 \tab 
On August 26, 1998, Town House filed the instant matter, a Complaint to Set Aside Fraudulent Conveyances. Bench trial commenced on December 9, 1999. The parties proceeded to present evidence on the issue
 of whether the Ahns conveyed property in gift to their children in an attempt to defraud Town House, as creditor. After the presentation of Town House}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 
s case, the Ahns moved for a directed verdict which was denied by the court. In its written Decision and Order on the motion, the court found that Town House had made a }{\i\insrsid9666257\charrsid7423983 prima facie}{\insrsid9666257\charrsid7423983 
 showing of a fraudulent conveyance. }{\i\insrsid9666257\charrsid7423983 See}{\insrsid9666257\charrsid7423983  }{\i\insrsid9666257\charrsid7423983 Town House v. Ahn}{\insrsid9666257\charrsid7423983 
, CV2022-98 (Super. Ct. Guam Feb. 29, 2000) (Decision and Order).}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [6]}{\insrsid9666257\charrsid7423983 \tab 
In its Findings of Fact and Conclusions of Law, the court found, in addition to the facts outlined above, that the children of the Ahns collectively decided to assist their parents by taking over the mortgage payments on the properties conveyed to them an
d that, as of the date of trial, they have continued to make payments on the mortgages directly to the mortgagees. }{\i\insrsid9666257\charrsid7423983 See}{\insrsid9666257\charrsid7423983  }{\i\insrsid9666257\charrsid7423983 Town House v. Ahn}{
\insrsid9666257\charrsid7423983 , CV2022-98 (Super. Ct. Guam Feb. 29, 2000) (Findings of Fact and Conclusions of Law). The court specifically found that 
the transfer was intended to prevent foreclosure on the properties by the parties holding mortgages. The court then concluded that judgment for the Ahns was appropriate. It observed that, pursuant to 20 GCA }{\insrsid9666257\charrsid7423983 
{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
 6101 and 6103, a creditor who requests a transfer or conveyance to be set aside bears the burden of proving that the transfer or conveyance was an attempt to delay or defraud the creditor but that the intent to avo
id foreclosure is not a fraudulent conveyance where the property is conveyed prior to a judgment against the grantor. The court found that the Ahns intended to transfer the properties in an effort to avoid foreclosure by the several mortgagees and not the
 avoidance of a potential lawsuit for deficiency by Town House.}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [7]}{\insrsid9666257\charrsid7423983 \tab Town House appeals from the judgment of the lower court.}{\insrsid7423983 
\par 
\par }\pard \qc \fi-720\li720\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin720\itap0\pararsid7423983 {\b\insrsid9666257\charrsid7423983 II}{\b\insrsid7423983  }{\b\insrsid9666257\charrsid7423983 - DISCUSSION}{\insrsid7423983 
\par }\pard \qj \fi-720\li720\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin720\itap0\pararsid7423983 {\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\b\insrsid9666257\charrsid7423983 [8]}{\insrsid9666257\charrsid7423983 \tab Jurisdiction over the matter is obtained pursuant to Title 7 GCA }{\insrsid9666257\charrsid7423983 
{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
 3107 and 3108 (1994). Prior to oral argument, on October 12, 2000, the Ahns filed an Emergency Motion to Dismiss for Mootness.}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 The Ahns, after being ordered by this court to properly brief t
he issues, submitted a Second Motion to Dismiss which was filed on October 17, 2000.}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 Town House filed its Opposition on October 20, 2000. }{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 A- MOOTNESS}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [9]}{\insrsid9666257\charrsid7423983 \tab We first proceed to dispose of the Ahns}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 
 Motion to Dismiss on the grounds that the instant appeal has been rendered moot by virtue of this court}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 s decision in }{\i\insrsid9666257\charrsid7423983 Town House v. Ahn}{
\insrsid9666257\charrsid7423983 , 2000 Guam 29 (Superior Court Case No. CV0098-97). }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
A claim becomes moot only when the issues are no longer live or the parties lack a legally cognizable interest in the outcome.}{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\i\insrsid9666257\charrsid7423983  United States v. Ripinsky}{\insrsid9666257\charrsid7423983 , 20 F. 3d 359, 361 (9}{\super\insrsid9666257\charrsid7423983 th}{\insrsid9666257\charrsid7423983  Cir. 1994) (citations and internal quotations omitted).}{
\insrsid7423983  }{\insrsid9666257\charrsid7423983 Mootness can arise at any stage of litigation. }{\i\insrsid9666257\charrsid7423983 See Calderon v. Moore}{\insrsid9666257\charrsid7423983 
, 518 U.S. 149, 150, 116 S. Ct. 2066, 2067 (1996) (citations omitted). }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
[C]ourts may not give opinions upon moot questions or abstract propositions.}{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  }{
\i\insrsid9666257\charrsid7423983 Id.}{\insrsid9666257\charrsid7423983  Thus, an appeal should be dismissed as moot when, by virtue of an intervening event, the appellate court cannot grant effectual relief whatever in favor of the appellant. }{
\i\insrsid9666257\charrsid7423983 Id.}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [10]}{\insrsid9666257\charrsid7423983 \tab The inst
ant appeal arises from an adverse decision by the Superior Court which held that various conveyances of real property were not fraudulent as against a creditor, Town House. The intervening event that the Ahns claim rendered the case moot is this court}{
\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 s de
cision in the action seeking a deficiency judgment against the Ahns. This court reversed and remanded that case for the trial court to address the issue of whether the re-sale price was fair and reasonable. }{\i\insrsid9666257\charrsid7423983 
See Town House v. Ahn}{\insrsid9666257\charrsid7423983 , 2000 Guam 29 at }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
 15. The specific issue raised in that appeal}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 was whether the trial court erred in not making a specific finding that the goods were resold at a price which was fair and reasonable. }{
\i\insrsid9666257\charrsid7423983 Id.}{\insrsid9666257\charrsid7423983  at }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  5.}{\insrsid7423983  }{
\insrsid9666257\charrsid7423983 A review of the briefs filed in that matter reveal that this was the only challenge to the judgment below. Nowhere was the issue of whether or not the Ahns were liable for the debt ever discussed. }{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [11]}{\insrsid9666257\charrsid7423983 \tab It may be arguable that if the requirements of Guam R. Civ. P. Rule 70(a) were not satisfied then the validity of Town House}{\insrsid6701750\charrsid7423983 '}{
\insrsid9666257\charrsid7423983 s claim is consequently at issue. However, as outlined below and for purposes of determining whether a transfer is fraudulent, a party must show that one is a creditor of the debtor at the time of the conveyance. }{
\i\insrsid9666257\charrsid7423983 See Adams v. Bell}{\insrsid9666257\charrsid7423983 , 5 Cal. 2d 697, 701, 56 P. 2d 208, 209 (Cal. 1936); }{\i\insrsid9666257\charrsid7423983 Stach Constr. Co. v. Jackson}{\insrsid9666257\charrsid7423983 
, 594 P.2d 1289, 1291 (Or. Ct. App. 1979). It is not necessary that the claim at said time be reduced to judgment. }{\i\insrsid9666257\charrsid7423983 Adams,}{\insrsid9666257\charrsid7423983 
 5 Cal. 2d at 701. Similarly, the judicially determined validity of Town House}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 
s claim against the Ahns for purposes of challenging an alleged fraudulent transfer is ostensibly not an issue for the lower court}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 
s consideration in Superior Court Case No. CV0098-97. The controversy between the parties in the instant appeal is the validity of the transfers of property at the time Town House had a claim against the Ahns. The reversal and remand of the earlier case d
id nothing but restore the parties to the circumstances they occupied before the lawsuits,}{\i\insrsid9666257\charrsid7423983  i.e}{\insrsid9666257\charrsid7423983 ., creditor and debtor. As such, this court}{\insrsid6701750\charrsid7423983 '}{
\insrsid9666257\charrsid7423983 s decision of the instant appeal is unaffected.}{\cs15\super\insrsid9666257\charrsid7423983 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 
\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\fs20\super\insrsid9666257 \chftn }{\fs20\insrsid9666257 It is a remote possibility that on remand the trial court may decide t
hat the precepts of Rule 70(a) are not satisfied and that Town House had no valid claim against the Ahns.  Notwithstanding that such a finding may be beyond the scope for which remand was predicated, its effect upon this court}{\fs20\insrsid6701750 '}{
\fs20\insrsid9666257 s disposition of the instant 
appeal may be substantial. Today, we have decided that the conveyances at issue were invalid and that judgment be  ordered to that effect. However, the Ahns would not be without recourse pursuant to Rule 60(b) of the Guam Rules of Civil Procedure.}}}{
\insrsid9666257\charrsid7423983  }{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [12]}{\insrsid9666257\charrsid7423983 \tab Therefore, we hold that this court}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 
s remand of the earlier case between the parties has not rendered the instant appeal moot.}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 The effect of the remand is to place the parties in the same positions that they had occupied before any judg
ment was granted. Town House is thus still a creditor of the Ahns and still has standing to challenge a transfer of property as fraudulent.}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 B- FRAUDULENT CONVEYANCES}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [13]}{\insrsid9666257\charrsid7423983 \tab Turning to the merits of the instant appeal, our standard of review following a bench trial is that}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 the trial court}{
\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 s }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
[f]indings of fact, whether based on oral or documentary evidence, shall not be set aside unless clearly erroneous, and due regard shall be given to the opportunity of the trial court to judge the credibility of the witnesses.}{
\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  }{\i\insrsid9666257\charrsid7423983 See Yang v. Hong}{\insrsid9666257\charrsid7423983 , 1998 Guam 9, }{
\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  4 (citations omitted);}{\insrsid7423983  }{\i\insrsid9666257\charrsid7423983 Hemlani v. Nelson}{
\insrsid9666257\charrsid7423983 , 2000 Guam 20, }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  8, }{\i\insrsid9666257\charrsid7423983 
Estate of Benavente v. Maquera}{\insrsid9666257\charrsid7423983 , 2000 Guam 9, }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  7; }{
\i\insrsid9666257\charrsid7423983 Craftworld Interiors, Inc. v. King Enterprises, Inc}{\insrsid9666257\charrsid7423983 ., 2000 Guam 17, }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}
{\insrsid9666257\charrsid7423983  6;}{\insrsid7423983  }{\i\insrsid9666257\charrsid7423983 Magnuson v. Video Yesteryear}{\insrsid9666257\charrsid7423983 , 85 F.3d 1424, 1427 (9}{\super\insrsid9666257\charrsid7423983 th}{\insrsid9666257\charrsid7423983 
 Cir. 1996). However, its conclusions of law are reviewed }{\i\insrsid9666257\charrsid7423983 de novo}{\insrsid9666257\charrsid7423983 . }{\i\insrsid9666257\charrsid7423983 Yang}{\insrsid9666257\charrsid7423983 , 1998 Guam 9 at }{
\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  4.}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [14]}{\insrsid9666257\charrsid7423983 \tab The two Guam statutory provisions at issue in this case provide as follows:}{\insrsid7423983 
\par 
\par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid7423983 {\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
 6101. Transfers, etc., defraud creditors.}{\insrsid7423983 
\par }\pard \qj \li0\ri720\nowidctlpar\faauto\rin720\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }\pard \qj \fi720\li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid7423983 {\insrsid9666257\charrsid7423983 
Every transfer of property or charge thereon made, every obligation incurred, and every judicial proceeding taken, with intent to delay or defraud any creditor or other
 person of his demands, is void against all creditors of the debtor, and their successors in interest, and against any person upon whom the estate of the debtor devolves in trust for the benefit of others than the debtor.}{\insrsid7423983 
\par }\pard \qj \li0\ri720\nowidctlpar\faauto\rin720\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid9666257\charrsid7423983 Title 20 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid9666257\charrsid7423983  6101 (1994) and}{\insrsid7423983 
\par 
\par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid7423983 {\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
 6103. Question of fraud, how determined.}{\insrsid7423983 
\par }\pard \qj \li0\ri720\nowidctlpar\faauto\rin720\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }\pard \qj \fi720\li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid7423983 {\insrsid9666257\charrsid7423983 In all cases arising under 21 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  41101 [}{\i\insrsid9666257\charrsid7423983 Void Instruments, purchases}{\insrsid9666257\charrsid7423983 ], or under the provisions of this Chapter, except as otherwise provided in 7 GCA }{
\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  50500 [}{\i\insrsid9666257\charrsid7423983 Transfers, Etc., Defraud Creditors}{
\insrsid9666257\charrsid7423983 ], the question of fraudulent intent is one of fact and not of law;}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 nor can any trans
fer or charge be adjudged fraudulent solely on the ground that it was not made for a valuable consideration;}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
provided, however, that any transfer or encumbrance of property made or given voluntarily, or without a valuable consideration, by a party while insolvent or in contemplation of insolvency, shall be fraudulent, and void as to existing creditors.}{
\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }{\insrsid9666257\charrsid7423983 Title 20 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  6103 (1994).}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [15]}{\insrsid9666257\charrsid7423983 \tab These provisions were adopted from California}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 s proscription against fraudulen
t transfers as it existed before the enactment of the 1939 Uniform Fraudulent Conveyance Act, which was subsequently replaced in 1986. }{\i\insrsid9666257\charrsid7423983 See generally, Cortez v. Vogt}{\insrsid9666257\charrsid7423983 
, 60 Cal. Rptr. 2d 841, 849 n. 13, 52 Cal.App. 4}{\super\insrsid9666257\charrsid7423983 th}{\insrsid9666257\charrsid7423983  917, 930 n. 13 (Cal. Ct. App. 1997). Specifically, 20 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
 6101 and 6103 were derived from former Sections 3439 and 3442 of the California Civil Code, respectively. Thus, California precedent, while not controlling, is helpful in the application of these statutes.}{\insrsid7423983  }{
\i\insrsid9666257\charrsid7423983 See Custodio v. Boonprakong}{\insrsid9666257\charrsid7423983 , 1999 Guam 5, }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 38 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid9666257\charrsid7423983  11; }{\i\insrsid9666257\charrsid7423983 Sumitomo Constr. v. Zhong Ye, Inc}{\insrsid9666257\charrsid7423983 ., 1997 Guam 8; }{\i\insrsid9666257\charrsid7423983 People v. Quenga}{\insrsid9666257\charrsid7423983 
, 1997 Guam 6..}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [16]}{\insrsid9666257\charrsid7423983 \tab It has been held th
at the distinction between sections 3439 and 3442 is that the question of actual intent is controlling in actions brought under the former, whereas the question of actual intent is immaterial to actions brought under the latter. }{
\i\insrsid9666257\charrsid7423983 See Millard v. Epsteen}{\insrsid9666257\charrsid7423983 , 58 
Cal.App. 2d 612, 614, 137 P. 2d 717, 718 (Cal.Dist.Ct.App. 1943) (citations omitted). Additionally, section 3442 is inapplicable to a conveyance made for a valuable consideration. }{\i\insrsid9666257\charrsid7423983 See Millard}{
\insrsid9666257\charrsid7423983 , 58 Cal.App. 2d at 614.}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 Generally, these statutes should be liberally construed to effect their purpose:}{\insrsid7423983 
\par 
\par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid7423983 {\insrsid9666257\charrsid7423983 [t]hat purpose undoubtedly is to prevent debtors from placing property which legitimately should be available for the satisfaction of d
emands of creditors beyond their reach, or in other words, to compel a person engaging in business to take the hazards and risks thereof as well as the chances for profit.}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
If misfortune should overtake him, he must face it himself, and not attempt to saddle it onto those who have extended him credit and trusted in his commercial integrity.}{\insrsid7423983 
\par }\pard \qj \li0\ri720\nowidctlpar\faauto\rin720\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\i\insrsid9666257\charrsid7423983 Borgfeldt v. Curry}{\insrsid9666257\charrsid7423983 , 25 Cal.App. 624, 626, 144 P. 976, 977 (Cal.Dist.Ct.App. 1914).}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [17]}{\insrsid9666257\charrsid7423983 \tab With these general considerations in mind, we proceed to assess}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 the lower court}{\insrsid6701750\charrsid7423983 '}{
\insrsid9666257\charrsid7423983 s conclusion that the conveyances were not fraudulent as to Town House.}{\insrsid7423983 
\par 
\par }\pard \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid9666257\charrsid7423983 1. Fraudulent Transfers under 20 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\insrsid9666257\charrsid7423983  6101}{\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }{\b\insrsid9666257\charrsid7423983 [18]}{\insrsid9666257\charrsid7423983 \tab It is undisputed that Town House was a creditor of Ahn at the time the conveyance was made
. The guaranty making the Ahns liable to Town House was executed on December 29, 1995. The alleged fraudulent conveyances occurred }{\i\insrsid9666257\charrsid7423983 via}{\insrsid9666257\charrsid7423983  deeds of gift to the Ahns}{
\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983  children in joint tenancy on August 19, 1996. Town House}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 s suit on the deficiency was filed on
 January 29, 1997. The fact that the liability had not been reduced to a judgment at the time of the conveyance is immaterial. }{\i\insrsid9666257\charrsid7423983 See Adams,}{\insrsid9666257\charrsid7423983  5 Cal. 2d at 701, 56 P. 2d at 209. }{
\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [19]}{\insrsid9666257\charrsid7423983 \tab For purposes of determining whether to set aside a conveyance of property pursuant to 20 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  6101, the question of actual intent to defraud the creditor is the essential element of a cause of action. }{\i\insrsid9666257\charrsid7423983 See Millard}{
\insrsid9666257\charrsid7423983 , 58 Cal.App. 2d at 614, 137 P. 2d at 718. Thus, it must be }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
affirmatively shown by sufficient evidence that the transfer was made by the transferor with the intent to delay or defraud his creditors or other persons owning and holding demands against him.}{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL
 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  }{\i\insrsid9666257\charrsid7423983 See Hanscome-James-Winship v. Ainger}{\insrsid9666257\charrsid7423983 
, 71 Cal.App. 735, 740, 236 P. 325, 327 (Cal.Dist.Ct.App. 1925).}{\insrsid7423983  
\par 
\par }{\b\insrsid9666257\charrsid7423983 [20]}{\insrsid9666257\charrsid7423983 \tab Here, the trial court found that the transfer was made to avoid foreclosure by the several mortgage
es and not the specific avoidance of the claim of Town House. We do not see how such a conclusion can be reached in spite of the existence of facts and circumstances showing: (1) that the Ahns were warned of possible repercussions from T&K}{
\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 s continued delinquency on account and of the possibility of legal}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
action for any deficiency after repossession and sale of the goods under the contract; (2) that on August 9, 1996, the Ahns informed Town House that T&K would be unable to make payments; (3) that}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 ten day
s later, the Ahns transferred all of their real property to their three children, effectively divesting whatever assets they may have had to pay on their personal guaranty; and (4) that all this occurs against a backdrop that includes the fact that the Ah
ns had been experiencing financial difficulties with other creditors.}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [21]}{\insrsid9666257\charrsid7423983 \tab 
It is evident that the timing of the transfers, the situation of the Ahns with respect to their creditors, and the effective inability of Town House to ever recover from the Ahns on the guaranty}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
are compelling evidence that the it was the Ahns}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983  purpose to defeat Town House}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 
s recovery under the guaranty by conveying essentially all their assets to their children. The trial court}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 s decision on the Motion for Directed Verdict specifical
ly found that, on these facts, a }{\i\insrsid9666257\charrsid7423983 prima facie}{\insrsid9666257\charrsid7423983  showing of the alleged fraudulent conveyance was made. }{\i\insrsid9666257\charrsid7423983 See Town House v. Ahn}{
\insrsid9666257\charrsid7423983 , CV2022-98 (Super. Ct., Feb. 29, 2000) (Decision and Order). }{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [22]}{\insrsid9666257\charrsid7423983 \tab However, the only evidence to rebut this objective evidence and to justify the lower court}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 
s finding with respect to the lack of fraudulent intent were the defendants}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 
 contentions that the transfers were made to avoid foreclosure of the properties by the respective holders of mortgages on the properties. It is a more appropriate characterization of the transfer that in return for their}{\insrsid7423983  }{
\insrsid9666257\charrsid7423983 assumption of the mortgage payments the children will get legal title of the properties. }{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [23]}{\insrsid9666257\charrsid7423983 \tab Our concern with the lower court}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 s conclusion is that there was no evidence tha
t any of the mortgagees had any pending foreclosure proceedings against any of the properties secured by their respective mortgages. Nor was there evidence of how the assumption of the monthly mortgage payments by the Ahns}{
\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983  children would have absolved their parents}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983  obligations of the underlying debts.}{\insrsid7423983  }{
\insrsid9666257\charrsid7423983 The only conclusion that the evidence could support is that the only thing accomplished by the transfers was the frustration, hindrance and delay of Town House}{\insrsid6701750\charrsid7423983 '}{
\insrsid9666257\charrsid7423983 s ability to satisfy its claim against the Ahns. }{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [24]}{\insrsid9666257\charrsid7423983 \tab 
The self-serving contentions of subjective intent are not enough to have overcome the objective evidence of intent to defraud that had been presented by Town House and support the lower court}{\insrsid6701750\charrsid7423983 '}{
\insrsid9666257\charrsid7423983 s finding that the transfers were not intended to defraud Town House.}{\insrsid7423983 
\par 
\par }\pard \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\b\insrsid9666257\charrsid7423983 2. Fraudulent Transfers under 20 GCA }{\b\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\b\insrsid9666257\charrsid7423983  6103}{\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }{\b\insrsid9666257\charrsid7423983 [25]}{\insrsid9666257\charrsid7423983 \tab Even assuming }{\i\insrsid9666257\charrsid7423983 arguendo}{\insrsid9666257\charrsid7423983 
 that the evidence was ambiguous with respect to the actual intent to defraud, we would still find, however, that the alternative means of avoiding the conveyance provided in 20 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  6103, is properly invoked to render the conveyances at issue here as void. Although it is}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
is necessary that it be affirmatively shown by sufficient evid
ence that the transfer was made by the transferor with the intent to delay or defraud his creditors or other persons owning and holding demands against him to set aside a conveyance under 20 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL
 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  6101; such a showing is immaterial if the conveyance is set aside pursuant to 20 GCA 6103. }{\i\insrsid9666257\charrsid7423983 See Hanscome}{
\insrsid9666257\charrsid7423983 , 71 Cal.App. at 740-41, 236 P. at 327 (discussing}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 Cal. Civ. Code }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  3439 and 3442).}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [26]}{\insrsid9666257\charrsid7423983 \tab Under that provision, where a}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
grantor was insolvent or in contemplation of insolvency at the time of conveyance and the absence of valuable consideration is shown then a presumption that the conveyance was fraudulent as against creditors of the grantor arises. }{
\i\insrsid9666257\charrsid7423983 Id.}{\insrsid9666257\charrsid7423983  If such a showing is made then the burden is on the grantor to prove that the conveyance was supported by a valuable consideration. }{\i\insrsid9666257\charrsid7423983 See}{
\insrsid9666257\charrsid7423983  }{\i\insrsid9666257\charrsid7423983 Id.}{\insrsid9666257\charrsid7423983  }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid9666257\charrsid7423983 A person is insolvent who either has ceased to pay his debts in the ordinary course of business or cannot pay his debts as they become due. . . .}{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  Title 13 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
 1201(23) (1993). Consideration is }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
any benefit conferred, or agreed to be conferred, upon the promisor, by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered, or agreed to be su
ffered, by such person, other than such as he is at the time of consent lawfully bound to suffer, as an inducement to the promisor. . . .}{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}
}{\insrsid9666257\charrsid7423983  Title 18 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  85501 (1992).}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [27]}{\insrsid9666257\charrsid7423983 \tab In this case, the trial court}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 
s findings of fact more than adequately demonstrate that, at the time of the conveyances, the Ahns were either insolvent or in contemplation of insolvency.}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
The court found that, at various times between February 1995 and
 August 1996, the Ahns had been in default of or unable to make payments on loans and mortgages to the United States Department of Housing and Urban Development, the United States Department of Agriculture (Farm Service Agency), Lee Roy Tarantino and Lee 
King Too and the creditor here, Town House. }{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [28]}{\insrsid9666257\charrsid7423983 \tab However, the next inquiry of whether the conveyances were made without valuable consideration is inapposite the trial court}{\insrsid6701750\charrsid7423983 '}{
\insrsid9666257\charrsid7423983 s conclusion. The court below did not make an express finding of val
uable consideration for the conveyance. Nor does the record contain the deed and its recitation of consideration; however, assuming an expressed consideration }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 for love and affection}{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
 typical in deeds of gift, while good, it is not valuable consideration. }{\i\insrsid9666257\charrsid7423983 See Hanscome}{\insrsid9666257\charrsid7423983 , 71 Cal. App. at 741, 236 P. at 327.}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
Thus, a presumption arose that the conveyance was fraudulent as against Town House.}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [29]}{\insrsid9666257\charrsid7423983 \tab The Ahns insist that the tra
nsfer was supported by a valuable consideration in that the trial court found that their children collectively decided to assist their parents by taking over the mortgage payments on the properties and that they had serviced the debts. But as discussed ab
ove, the lower court does not elaborate how such a transfer would have accomplished the objective of avoiding foreclosure, nor was there evidence that the properties were facing}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
foreclosure proceedings. There could not have been a novation because there was no evidence that the mortgagees had assented to the arrangement.}{\cs15\super\insrsid9666257\charrsid7423983 \chftn {\footnote \pard\plain 
\qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\fs20\super\insrsid9666257 \chftn }{\fs20\insrsid9666257 
In fact, such a transfer usually results in substantial breach of the terms of a mortgage, acceleration of the underlying debt and foreclosure.}}}{\insrsid9666257\charrsid7423983  Further, there was no evidence that the children took any steps}{
\insrsid7423983  }{\insrsid9666257\charrsid7423983 to become personally liable for or substitute in the place of their parents }{\i\insrsid9666257\charrsid7423983 vis-a-vis}{\insrsid9666257\charrsid7423983 
 their creditors. No conclusion that a valuable consideration was exchanged for the transfer of title to the properties is supported by the record.}{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [30]}{\insrsid9666257\charrsid7423983 \tab Thus, pursuant to 20 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid9666257\charrsid7423983  6103, the conveyances were fraudulent as against Town House and they should be set aside. }{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 C. Preference of Creditors}{\insrsid9666257\charrsid7423983  }{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [31]}{\insrsid9666257\charrsid7423983 \tab Finally, we turn to the Ahns}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983  argument}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
that their conveyances represented}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 a preference of one set of creditors, the holders of mortgages, over another as allowed pursuant to 20 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL
 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  5103 and 5104. Those statutes provide:}{\insrsid7423983 
\par 
\par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid7423983 {\b\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\b\insrsid9666257\charrsid7423983 
5103. Contracts of debtor valid}{\insrsid9666257\charrsid7423983 .}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 In the absence of fraud, every contract of a debtor is valid against
 all his creditors, existing or subsequent, who have not acquired a lien on the property affected by such contract.}{\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }{\insrsid9666257\charrsid7423983 Title 20 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  5103 (1992) and}{\insrsid7423983 
\par 
\par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid7423983 {\b\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\b\insrsid9666257\charrsid7423983 5104. Payments in p
reference}{\insrsid9666257\charrsid7423983 .}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
A debtor may pay one creditor in preference to another, or may give to one creditor security for the payment of his demand in preference to another, except as provided in the insolvency law of Guam.}{\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }{\insrsid9666257\charrsid7423983 Title 20 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
 5104 (1992). These statutes permit the payment of one creditor over another or the provision as security for payment of his demand in preference to another. However, there is no evidence that such a transaction occurred here. }{\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [32]}{\insrsid9666257\charrsid7423983 \tab In }{\i\insrsid9666257\charrsid7423983 Millard v. Epsteen}{\insrsid9666257\charrsid7423983 , 58 Cal. App. 2d 612, 137 P. 2d 717 (Cal.Dist.Ct.App. 1943),}{\insrsid7423983  }{
\insrsid9666257\charrsid7423983 the debtor conveyed}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 her undivided one-half interest in real property to the co-tenant,}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 
her sister. The transfer was made to repay an outstanding debt owed to her sister. The appellate}{\insrsid7423983  court there noted that the law
\par 
\par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid7423983 {\insrsid9666257\charrsid7423983 
expressly permits a debtor to pay one creditor in preference to another . . . and while under certain circumstances, a transfer resulting in a preference may be set aside for the benefit of all creditors in bankruptcy p
roceedings, such transfer may not be set aside in an action of this kind solely because a preference may have resulted.}{\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }{\i\insrsid9666257\charrsid7423983 Id.}{\insrsid9666257\charrsid7423983  at 616, 137 P. 2d at 719. (citing to California Civil Code }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid9666257\charrsid7423983  3432 upon which 20 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983 
 5104 is based). The trial court found that the conveyance was made for a valuable consideration and the appellate court refused to find otherwise. }{\i\insrsid9666257\charrsid7423983 Id.}{\insrsid9666257\charrsid7423983  At 615-16, 137 P. 2d at 718-19.}{
\insrsid7423983 
\par 
\par }{\b\insrsid9666257\charrsid7423983 [33]}{\insrsid9666257\charrsid7423983 \tab As distinguished from this case, the debtor in }{\i\insrsid9666257\charrsid7423983 Millard}{\insrsid9666257\charrsid7423983 
 conveyed the property to repay an outstanding debt. Here, the transfer of the properties did not go to the Ahns}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983 
 mortgagees; either as payment on or additional security for an outstanding obligation. Rather, the
 properties went to the children and the children were not creditors of their parents. Moreover, as discussed above, the evidence suggests an element of fraud, both in actuality and as a presumption pursuant to 20 GCA }{\insrsid9666257\charrsid7423983 
{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}{\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  6101 and 6103, respectively. Thus, 20 GCA }{
\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  5103 provides no impediment to Town House}{\insrsid6701750\charrsid7423983 '}{
\insrsid9666257\charrsid7423983 s claim. Similarly, 20 GCA }{\insrsid9666257\charrsid7423983 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid9666257\charrsid7423983  
5104 is inapplicable because the evidence does not demonstrate a preference of one creditor over another.}{\insrsid7423983  
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid7423983 {\b\insrsid9666257\charrsid7423983 III- CONCLUSION}{\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\b\insrsid9666257\charrsid7423983 [34]}{\insrsid9666257\charrsid7423983 \tab Based on the foregoing, we }{\b\insrsid9666257\charrsid7423983 DENY}{\insrsid9666257\charrsid7423983 
 the Ahns}{\insrsid6701750\charrsid7423983 '}{\insrsid9666257\charrsid7423983  Motion to Dismiss Appeal for Mootness and}{\insrsid7423983  }{\b\insrsid9666257\charrsid7423983 VACATE}{\insrsid9666257\charrsid7423983  the judgment of the lower court and }{
\b\insrsid9666257\charrsid7423983 ORDER}{\insrsid9666257\charrsid7423983  that judgment be entered in favor of Town House and that the conveyances be set aside. The case is further }{\b\insrsid9666257\charrsid7423983 REMANDED}{
\insrsid9666257\charrsid7423983  for further proceedings consistent with this opinion.}{\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }\pard \qc \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid9666257\charrsid7423983 PETER C.}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 SIGUENZA, JR.\tab \tab \tab JOHN A.}{\insrsid7423983  }{
\insrsid9666257\charrsid7423983 MANGLONA
\par Associate Justice\tab \tab \tab \tab }{\insrsid7423983  }{\insrsid9666257\charrsid7423983 Designated Justice}{\insrsid7423983 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid7423983 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7423983 {\insrsid9666257\charrsid7423983 BENJAMIN J.}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 F.}{\insrsid7423983  }{\insrsid9666257\charrsid7423983 CRUZ
\par Chief Justice}{\insrsid7423983 
\par }}