AZ SB1252

Establishes the Uniform Assignment for Benefit of Creditors Act in Arizona (Title 44, Chapter 6), creating a standardized legal framework for businesses or individuals to transfer all assets to an assignee for distribution to creditors as an alternative to bankruptcy

Applies to organizations with principal place of business in Arizona, entities governed by Arizona law, individuals residing in Arizona, and certain affiliated organizations

Requires assignees to be independent parties with no conflicts of interest (cannot be creditors, affiliates, or insiders of the assignor) and mandates a written assignment agreement signed by both parties describing assets, fees, and distribution provisions

Sets creditor notification requirements within 30 days of assignment, establishes a 120-day deadline for creditors to submit proofs of claim, and requires assignees to provide creditors with estate summaries at least every six months

Establishes distribution priority order: protected secured creditors first, followed by administrative costs, wages owed to employees (up to specified limits), taxes, and finally general unsecured claims on a pro rata basis