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OK HB3588

OK HB3588
Debtors and creditors; Uniform Assignment for Benefit of Creditors Act; effective date.

summary

Introduced
02/02/2026
In Committee
02/03/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

An Act relating to debtors and creditors; creating the Uniform Assignment for Benefit of Creditors Act; defining terms; providing for application of act to assignments made by certain assignors; defining who an assignee shall be; requiring assignment agreement be a signed record; providing requirements for record; permitting good faith reliance on certain assignor representation; directing the assignee obtain certain rights, title, and interest in assigned assets; requiring assignee take certain interest in assigned assets; providing assignment subject to other laws; setting effective date of assignment agreement; defining financing statement; providing for filing of financing statement; limiting effect of filing or not filing financing statement; requiring record for real property; authorizing actions by assignee after assignor signature; requiring notice unless waived; listing requirements for notice; permitting reasonable means for notice to unknown creditors; requiring duty to take all reasonable actions; requiring assignee fiduciary duty for the benefit of creditors; empowering assignee with necessary powers to perform duties; limiting powers to assignees with respect to a creditor that submits a proof of claim; clarifying powers in relation to liens; limiting power to avoid a transfer made before the effective date of the assignment agreements; requiring powers be exercised constituent with fiduciary duty; authorizing creditor's claim under certain circumstances; permitting assignee discretion for certain claims; clarifying value date of certain unsecured claims; permitting creditor claim after success in dispute; requiring complete list of credits; detailing list requirements; requiring certain notice; authorizing certain proceeding for disputed claims; permitting reconsideration of claims; providing requirements for proof of claim; listing assignee's methods of disposition of assets; permitting transferee to take free of rights and interests if acting in good faith; providing rights and interests for certain transferred assets; disclaiming certain warrants to the extent permitted by law; permitting certain filing; defining protected secured creditor; providing for priority for payment of claims; permitting subordination agreements; providing for subordinate claims; exempting assignor from personal liability for act or omission by assignee; exempting assignee from personal liability for act or omission by assignor; exempting representatives from liability except for gross negligence or willful misconduct; permitting waiver of liability in assignment agreement; deeming term unenforceable if term relieves assignee of liability for act or omission committed in bad faith or with reckless indifference; finding an assignee personally liable for breach of fiduciary duty; excluding from liability if assignee acts in good faith; permitting request for removal of assignee; authorizing removal for certain reasons; authorizing court to appoint a successor assignee under certain circumstances; permitting court to order certain persons to turn over or disclose certain information to successor assignee; requiring assignee send certain information to creditors; describing when assignee is discharged of duties; providing for effect of assignment under laws of another statute; authorizing district court to hear certain matters; permitting court to issue certain orders; permitting a court to appoint an assignee for out of state matters; permitting court to enforce out of state orders; requiring certain notice to ancillary assignee; prohibiting agreement from changing application of act; permitting reasonable times to be fixed in agreement; requiring uniform application; clarifying effect on the Electronic Signatures in Global and National Commerce Act and other federal law; applying act to assignments made on or after November 1, 2026; providing for severability; providing for codification; and providing an effective date.

AI Summary

This bill establishes the Uniform Assignment for Benefit of Creditors Act, a new legal framework for situations where a debtor (assignor) transfers all their assets to a third party (assignee) to be managed and distributed for the benefit of their creditors. The Act defines key terms like "assignor," "assignee," "asset," and "creditor," and outlines who can act as an assignee, requiring them to be impartial and not a creditor or insider of the assignor. It mandates that assignment agreements be signed records detailing the transfer of all assets, the distribution plan, and the assignee's fees, and clarifies that the assignee gains the assignor's rights to these assets, subject to existing interests. The bill also addresses the filing of financing statements for personal property and recording requirements for real property, requires the assignee to notify creditors of the assignment, and establishes the assignee's fiduciary duty to act in good faith for the benefit of creditors, granting them broad powers to manage and dispose of assets, including the ability to avoid certain prior transfers. The Act details the process for creditors to submit claims, how disputed claims are handled, and outlines a priority system for paying creditors, generally favoring secured creditors first, then administrative costs, federal priority claims, wages, and finally other unsecured creditors. It also addresses liability for assignors and assignees, the removal of assignees, and the appointment of successor assignees, with the entire process overseen by the district court. The Act applies to assignments made on or after November 1, 2026, and aims to promote uniformity in how these assignments are handled across states.

Committee Categories

Business and Industry, Government Affairs

Sponsors (1)

Last Action

Policy recommendation to the Government Oversight committee; Do Pass Banking, Financial Services and Pensions (on 02/11/2026)

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