Uniform Assignment for Benefit of Creditors Amendments
What changed between versions
Removed the old, fragmented statutory text from the 1953 code that lacked modern definitions and procedures.
Created a mandatory notification process requiring assignees to inform creditors within 30 days and set a 90-to-210-day window for creditors to file claims.
Added a comprehensive list of modern legal definitions, including 'affiliate,' 'insider,' 'good faith,' and 'protected secured creditor,' to ensure clarity and consistency.
Established strict eligibility requirements for assignees, prohibiting them from being creditors, affiliates, or insiders of the assignor to prevent conflicts of interest.
Defined a detailed priority scheme for distributing assets, prioritizing secured creditors, administrative expenses, wages, and other claims in a specific order.
Set the effective date of the new law for May 6, 2026, and repealed the previous assignment for benefit of creditors code.
