All Roll Calls
Yes: 136 • No: 2
UtahH.B. 3822026 General SessionHouseWALLET
Uniform Assignment for Benefit of Creditors Amendments
Sponsored By: Jordan D. Teuscher (Republican)
Signed by Governor
BusinessBusiness EntitiesContracts and ObligationsLegislative OperationsUniform Laws
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 3 benefits, 0 costs, 5 mixed.
Notices and claim filing for creditors
Beginning May 6, 2026, the assignee must notify each known creditor within 30 days after the assignment starts. The assignee sets one proof‑of‑claim deadline between 90 and 210 days and must give a clear filing method. A proof must list contact info, claim amount and type, any collateral, a supporting record, and a signature under penalty of perjury. If a compliant claim is not disputed before final distribution, it is allowed and valued as of the start date. Disputed claims require a dollar‑for‑dollar reserve, and the assignee sends semiannual summaries and a final accounting.
Who gets paid first from estates
Beginning May 6, 2026, secured creditors with perfected, unavoidable liens are paid from their collateral first, less reasonable sale costs. Next come administrative expenses, then federal priority claims, then wages earned within 180 days before the assignment, and then other unsecured claims. Claims tied to securities or equity are subordinated; if tied to common stock, they rank like common equity. Buyers who pay value and act in good faith take assets free of the assignee’s and subordinate liens.
Court oversight, removal, and closing cases
Beginning May 6, 2026, a court can decide disputes about how the assignment is run. By accepting the assignment, the assignee agrees to the court’s authority. The court may remove an assignee for fraud, dishonesty, or mismanagement and appoint a successor. When finished, the assignee must send a final accounting and is discharged after sending it and distributing assets.
Interstate cases and Utah asset control
Beginning May 6, 2026, Utah recognizes out‑of‑state assignments when results are substantially similar. The assignee uses the other state’s amounts for wage and government claims in those cases. A Utah court may appoint an ancillary assignee for Utah‑located assets, and holders must turn them over when notified.
Utah’s new assignment system starts 2026
Beginning May 6, 2026, Utah uses a new, uniform process for assignments for the benefit of creditors. It applies to Utah‑connected businesses and residents and replaces the old assignment statutes. Courts aim for consistent rulings with other states that adopt this act. Electronic records and signatures are allowed under this chapter, with federal limits that still apply.
Assignor duties and assignee business powers
Beginning May 6, 2026, the assignor must preserve and turn over assets, name a representative, and give sworn lists of assets, employees, and known creditors. The assignee can operate the business, hire professionals, borrow, collect and sell assets, sue or defend claims, and avoid certain transfers, with limits like in bankruptcy. These powers help recover value for creditors.
Starting an assignment and who can serve
Beginning May 6, 2026, an assignee must be independent and cannot be a creditor or insider. The assignment agreement must be signed, describe the assets, set fees and distributions, and include a sworn statement that all assets are assigned. The assignee gets the assignor’s rights in the assets, and for companies, rights in assets acquired after the assignment. The assignee can file financing statements and must record real‑estate interests; filings do not by themselves decide lien priority.
Liability limits and allowed contract changes
Beginning May 6, 2026, assignors and assignees are not personally liable for each other’s acts. No contract can excuse bad faith, reckless acts, gross negligence, or willful misconduct. Assignees are protected when they reasonably rely on records or on people chosen with care. Parties may set reasonable performance standards and limit liability to the estate, but they cannot disclaim core duties or cut the 30‑day creditor notice rule.
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Sponsors & Cosponsors
Sponsor
Jordan D. Teuscher
Republican • House
Cosponsors
Michael K. McKell
Republican • Senate
Roll Call Votes
Senate vote • 2/27/2026
Senate/ passed 3rd reading
Yes: 27 • No: 0
Senate vote • 2/26/2026
Senate/ passed 2nd reading
Yes: 26 • No: 0
House vote • 2/24/2026
Senate Comm - Favorable Recommendation
Yes: 6 • No: 0
House vote • 2/18/2026
House/ passed 3rd reading
Yes: 69 • No: 1
House vote • 2/9/2026
House Comm - Favorable Recommendation
Yes: 8 • No: 1
Actions Timeline
Governor Signed
3/23/2026House/ to Governor
3/12/2026HouseHouse/ received enrolled bill from Printing
3/12/2026HouseHouse/ enrolled bill to Printing
3/5/2026HouseEnrolled Bill Returned to House or Senate
3/5/2026Draft of Enrolled Bill Prepared
3/3/2026Bill Received from House for Enrolling
3/3/2026House/ signed by Speaker/ sent for enrolling
2/27/2026HouseHouse/ received from Senate
2/27/2026HouseSenate/ to House
2/27/2026SenateSenate/ signed by President/ returned to House
2/27/2026SenateSenate/ passed 3rd reading
2/27/2026SenateSenate/ 3rd reading
2/27/2026SenateSenate/ passed 2nd reading
2/26/2026SenateSenate/ 2nd reading
2/26/2026SenateSenate/ placed on 2nd Reading Calendar
2/25/2026SenateSenate/ committee report favorable
2/25/2026SenateSenate Comm - Favorable Recommendation
2/24/2026Senate/ to standing committee
2/20/2026SenateSenate/ 1st reading (Introduced)
2/19/2026SenateSenate/ received from House
2/18/2026SenateHouse/ to Senate
2/18/2026HouseHouse/ passed 3rd reading
2/18/2026HouseHouse/ 3rd reading
2/18/2026HouseHouse/ 2nd reading
2/10/2026House
Bill Text
Enrolled
3/5/2026
Introduced
1/26/2026
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