SB15

Official summary

This act is the Uniform Assignment for Benefit of Creditors Act. This act: (1) creates a uniform state-level alternative to federal bankruptcy that allows a debtor to voluntarily assign their assets to a fiduciary to liquidate the assets and distribute the proceeds to the assignee's creditors; (2) establishes requirements for assignment agreements, including for those who may enter into agreements, form and content of agreements, and assets subject to inclusion; (3) establishes requirements for filing and recording financial statements and the effect on transferring title; (4) unless waived, requires an assignee to notify creditors of assignment and provides requirements for such notification; (5) provides duties, powers, and limitations of liability for assignors and assignees, including the discharge, succession, and removal of assignees; (6) provides for allowed and disallowed, disputes as to, and proof of creditor claims, including authorizing assignees discretion to allow claims under certain circumstances; (7) grants transferees of assets certain rights; (8) provides for the distribution of assignees' assets and proceeds among creditors and the assignment estate, including claim subordination; (9) provides for the winding up and final accounting of an assignment; (10) requires the recognition and enforcement of assignments made in other states if result would be substantially similar in this state; and (11) grants circuit courts jurisdiction to hear and resolve assignment disputes.