Committee advances uniform Assignment for Benefit of Creditors Act to full House

The House Commerce Committee voted 10–0 to return Senate Bill 12 52 with a due-pass recommendation after staff and counsel for the Uniform Law Commission described the measure as a uniform adoption of the Assignment for Benefit of Creditors Act.

House research staff summarized the bill as adopting the Uniform Law Commission's act that governs how an assignor's assets transfer to an assignee who liquidates them for creditors' benefit. Jane Sternike, legislative counsel for the Uniform Law Commission, walked the committee through key provisions, including eligible assignors and assignees, the required contents and recording of assignment agreements for real property interests, creditor-notification procedures with opt-out options, the assignee's duties and powers as a fiduciary, court oversight for disputes, transferee rights, and a distribution waterfall with claims subordination rules.

A committee member moved that the bill be returned with a due-pass recommendation; the roll-call vote was recorded as 10 ayes, 0 nays and 1 absent. The measure advances to the next stage with the committee's recommendation.