Alabama legislation · 2026 Regular Session
Alabama SB15: Uniform Assignment for Benefit of Creditors Act; creates a voluntary state law process for distressed organizations to liquidate assets and distribute proceeds to creditors
Status: Signed into law, April 17, 2026
What the bill says
An Act, Relating to secured transactions; to create the Uniform Assignment for Benefit of Creditors Act; to provide for definitions and the scope of the act; to provide requirements for assignee and assignment agreements and for the effect of assignments; to provide requirements for filing, recording, and title transfers; to provide for notification to creditors; to provide for the duties and powers of assignors and assignees; to provide for allowed, disallowed, and disputed claims; to provide requirements for a proof of claim; to specify the rights of transferees…
From the enrolled text:
An Act, Relating to secured transactions; to create the Uniform Assignment for Benefit of Creditors Act; to provide for definitions and the scope of the act; to provide requirements for assignee and assignment agreements and for the effect of assignments; to provide requirements for filing, recording, and title transfers; to provide for notification to creditors; to provide for the duties and powers of assignors and assignees; to provide for allowed, disallowed, and disputed claims; to provide requirements for a proof of claim; to specify the rights of transferees; to provide for distributions, claim subordination, and the validity of subordination agreements; to provide for the liability of assignors and assignees, the removal of assignees, and the appointment of successor assignees; to provide for the winding up and final accounting; to provide for interstate matters, potential court action, and ancillary assignees; and to specify which provisions of an agreement may vary. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Short title. This act shall be known and may be cited as the Uniform Assignment for Benefit of Creditors Act. Section 2. Definitions. For the purposes of this act, the following terms have the following meanings: (1) AFFILIATE. Includes: a. A person that directly or indirectly owns, controls, Page a. A person that directly or indirectly owns, controls, SB15 Enrolled or …