Bill > SB15

This bill, known as the Uniform Assignment for Benefit of Creditors Act, establishes a voluntary legal process for distressed organizations to liquidate their assets and distribute the proceeds to their creditors. It defines key terms such as "assignor" (the organization transferring assets), "assignee" (the person receiving assets for creditors), "assignment" (the transfer of all assets), and "creditor" (anyone with a claim against the assignor). The act outlines the requirements for an assignee to be impartial and for the assignment agreement to be properly documented, including a representation that all assets are being transferred. It details the effective date of an assignment, the assignee's rights and duties, including the obligation to act in good faith and manage the estate for the benefit of creditors, and the assignor's duty to cooperate. The bill also specifies procedures for notifying creditors, handling claims, making distributions based on priority, and resolving disputes, with oversight from the circuit court. Importantly, it allows for the assignment agreement to modify certain provisions, but core duties of loyalty and good faith cannot be waived. The act aims to promote uniformity in how such assignments are handled across states and will become effective on October 1, 2026.

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