Bill > SB1252

This bill establishes the Uniform Assignment for Benefit of Creditors Act in Arizona, providing a legal framework for situations where a person or business voluntarily transfers all their assets to another party (an assignee) to pay off their debts to creditors. The Act defines key terms like "assignor" (the one transferring assets), "assignee" (the one receiving assets), "creditor" (anyone with a claim), and "assignment" (the transfer of assets for the benefit of creditors). It outlines who can act as an assignee, requiring them to be impartial and not a creditor or insider of the assignor. The bill details the requirements for an assignment agreement, including its content and the effective date. It grants the assignee broad powers to manage and dispose of the assigned assets, including operating a business if necessary, and establishes a clear process for creditors to submit claims, how those claims are handled (allowed, disputed, or disallowed), and the priority of payments to creditors, generally following administrative costs, secured claims, wages, and then other unsecured claims. The Act also addresses issues like the assignee's fiduciary duties, potential liabilities, removal of an assignee, and the winding up of the assignment process, aiming to provide a uniform and predictable process for resolving financial distress outside of formal bankruptcy proceedings.

Budget and Finance, Business and Industry

https://apps.azleg.gov/BillStatus/BillOverview/84768