AL SB15

Creates the Uniform Assignment for Benefit of Creditors Act, establishing a voluntary, out-of-court process for insolvent businesses to transfer all assets to an independent assignee for liquidation and distribution to creditors

Requires assignees to be independent parties with no financial interest in the outcome, who must notify creditors within 30 days, establish a 90-210 day claims deadline, and provide status reports every six months

Establishes distribution priority: secured creditors first, then administrative expenses, federal priority claims, wage claims (up to 180 days pre-assignment), and finally general unsecured creditors on a pro rata basis

Grants assignees broad powers including operating the business, selling assets, settling claims, and avoiding certain fraudulent transfers, while imposing fiduciary duties of loyalty and reasonable care

Effective October 1, 2026, applying to organizations with principal place of business in Alabama or individuals residing in the state