BillTrack50 logo
Free Signup Login
Bill

Bill > SB079

CO SB079

CO SB079
Uniform Assignment for Benefit of Creditors Act

summary

Introduced
02/04/2026
In Committee
02/04/2026
Crossed Over
Passed
Dead
02/26/2026

Introduced Session

2026 Regular Session

Bill Summary

Colorado Commission on Uniform State Laws. The bill enacts the "Uniform Assignment for Benefit of Creditors Act". An assignment is a transfer by a person (assignor) of all of the person's assets to another person (assignee) for the benefit of the assignor's creditors (assignment). The bill prohibits certain persons from serving as an assignee, including creditors, affiliates, or insiders of the assignor, and creates requirements for an assignment agreement. The bill establishes specific duties for the parties to an assignment, including: ! The assignor must preserve and turn over assets, provide information necessary to administer the assignment estate, and verify a list of all known creditors and assets under penalty of perjury; ! The assignee has a fiduciary duty to the assignment estate and must manage the assignment estate in good faith to maximize distributions and wind up the assignment in a timely manner; and ! The assignee shall notify known creditors of the assignment, maintain a separate deposit account for money, collect on or dispose of assets, and provide financial summaries to creditors at least every 6 months. The assignee is authorized to perform specific acts in furtherance of the assignee's duties, including operating the assignor's business, incurring debt, settling claims, and avoiding certain transfers that a creditor could have avoided under other law. The assignee may allow or dispute a creditor's claim against the assignment estate as specified in the bill. The priority of distributions from the assignment estate is specified in the bill. The assignor and assignee are not personally liable for each other's acts. However, an assignee is personally liable for a breach of fiduciary duty. A court may remove an assignee for cause or if removal best serves the interests of the creditors. The assignee is discharged from the assignee's duties upon sending a final accounting and distributing all assets.

AI Summary

This bill enacts the "Uniform Assignment for Benefit of Creditors Act," which establishes a legal framework for situations where a person or organization (the assignor) voluntarily transfers all of their assets to another party (the assignee) to pay off their debts to creditors. The act specifies who can serve as an assignee, prohibiting creditors, affiliates, or insiders of the assignor from holding this role to ensure impartiality. It outlines detailed duties for both the assignor, who must cooperate and provide necessary information, and the assignee, who has a fiduciary duty to manage the assets in good faith, maximize creditor returns, and wind down the process efficiently. Key responsibilities for the assignee include notifying creditors, maintaining separate financial accounts, collecting or selling assets, and providing regular financial updates. The bill also grants the assignee specific powers, such as operating the assignor's business, settling claims, and recovering certain improperly transferred assets, while also defining the order in which creditors will be paid from the available assets. The act clarifies that neither the assignor nor the assignee are personally liable for the other's actions, though an assignee can be held personally liable for breaching their fiduciary duty, and allows for the removal of an assignee by a court if necessary for the creditors' interests. Finally, the assignee's duties conclude upon submitting a final accounting and distributing all remaining assets.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Senate Committee on Business, Labor, & Technology Postpone Indefinitely (on 02/26/2026)

bill text

bill summary

Loading...

bill summary

Loading...
Loading...