OK HB3588

Creates the Uniform Assignment for Benefit of Creditors Act, codified in Title 24 of the Oklahoma Statutes, establishing a standardized process for insolvent businesses to transfer all assets to an independent assignee for liquidation and distribution to creditors outside of bankruptcy court

Requires assignees to be independent parties with no prior relationship as creditor, affiliate, or insider of the assignor, and imposes fiduciary duties including loyalty, reasonable care to maximize distributions, and proper wind-up of the assignment

Establishes a 90-day deadline for creditors to submit proofs of claim and creates a priority payment structure: secured creditors first, then administrative costs, federal priority claims, employee wages (up to 180 days before assignment), and finally general unsecured creditors

Grants assignees powers to operate the business, sell assets, settle claims, avoid certain pre-assignment fraudulent transfers, and engage professionals, while requiring semi-annual creditor reports and a final accounting upon completion

Applies to assignments made on or after November 1, 2026, by organizations with principal place of business or internal affairs governed by Oklahoma law, or individuals with principal residence in Oklahoma