All Roll Calls
Yes: 100 • No: 1
ArizonaSB 1252Fifty-seventh Legislature - Second Regular SessionSenateWALLET
uniform assignment; benefit of creditors
Sponsored By: J.D. Mesnard (Republican)
Signed by Governor
allowed claimancillary assigneeapplicationassigneeassignee removalassignment agreementassignment for benefit of creditorsassignorbenefit of creditorsclaim subordinationconstructioncourt actiondefinitiondefinitionsdisputed and disallowed claimsdistributionsdutieselectronic signaturesfilingglobal and national commerce actinterstate mattersliabilitynotification to creditorspowersproof of claimprovisions variable by agreementrecordingrelationrequirementsrights of transfereesscope (h)successor assigneetitle transfer requirementstrade and commerce - title 44transitional provisionuniform assignmentuniformitywinding up
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 0 benefits, 0 costs, 6 mixed.
Arizona recognizes some out-of-state assignments
Arizona must recognize and enforce an assignment made under another state’s law when the result on an issue would be substantially similar under Arizona law. For certain wage, salary, commission, or government claims, the assignee uses the amount asserted or determined under the other state’s law. An Arizona court can help carry out another state’s assignment order, and an ancillary assignee generally has Arizona assignee powers. After written notice, a person holding an assigned asset in Arizona must turn it over, except a creditor with a related lien or setoff or recoupment right.
Good-faith buyers get asset protections
A good-faith buyer of an assignment-estate asset takes it free of specified claims and interests. The buyer can receive this protection even if the assignee did not follow certain assignment or court procedures. The sale also discharges the assignee’s lien and any subordinate lien. Other-law warranties are disclaimed unless a record provides them, to the extent the law allows.
How creditors file and dispute claims
The assignee must notify known creditors within 30 days after the agreement takes effect and set a claim deadline 120 days after that date. Creditors must provide claim details, supporting records, and a signature under penalty of perjury; a proper filing is evidence of the claim. Filing also gives the court jurisdiction and transfers certain related legal rights to the assignee. The assignee may accept some claims without a formal filing or excuse a late filing for a reasonable reason. A creditor’s dispute must go to court before final payments, or the claim must be allowed, and the assignee must reserve the estimated payment dollar for dollar.
Workers and creditors share assignment payouts
The law sets the order for paying claims from an assignment estate, including protected secured claims, administration costs, federal-priority claims, wages, and other claims. Wage claims qualify for priority when earned within 180 days before the earlier of the assignment’s effective date or the business closing; the limit is the greater of the applicable bankruptcy or non-bankruptcy priority amount. Equal-priority creditors share available money in proportion to their claims, and allowed late claims may receive remaining funds after priority claims are paid. Some claims for losses tied to securities or equity rank behind senior or equal interests; claims tied to common equity share its priority.
Arizona rules for asset assignments
The law covers assignments by organizations based in Arizona or governed by Arizona law, and by people who live in Arizona. Some related organizations also qualify based on their ownership, control, and work-service ties. The assignor and assignee must sign a written agreement that lists the assets, explains distributions and fees, and includes the assignor’s sworn statement that all assets are included. The transfer takes effect when the last required party signs, unless the agreement sets a later date; existing interests and laws against voidable transfers still apply. Parties generally cannot change statutory duties by agreement, and certain notices cannot be sent electronically under this law.
Rules for managing assignment estates
The assignor must help the assignee manage the estate by preserving and handing over assets, sharing information, and providing verified lists of assets, employees, and known creditors. The assignee must act for the estate and creditors, and can manage, sell, recover, or abandon assets and hire professionals. An Arizona court can resolve questions about the assignment and issue related orders. The law limits some personal liability but preserves liability for serious misconduct; a court can remove an assignee for cause, and the assignee must account for the estate and send a final report to creditors whose allowed claims remain unpaid.
Sponsors & Cosponsors
Sponsor
J.D. Mesnard
Republican • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/2/2026
Third Reading: Passed
Yes: 48 • No: 1
House vote • 3/16/2026
Rules: C&P
Yes: 7 • No: 0
House vote • 3/10/2026
Commerce: DP
Yes: 10 • No: 0
Senate vote • 2/12/2026
Third Reading: Passed
Yes: 29 • No: 0
Senate vote • 1/26/2026
Finance: DP
Yes: 6 • No: 0
Actions Timeline
Signed by Governor
4/9/2026GovernorThird Reading: Passed
4/2/2026HouseCommittee of the Whole: do pass
3/30/2026HouseRules: C&P
3/16/2026HouseCommerce: DP
3/10/2026HouseHouse Second Reading
2/24/2026HouseHouse First Reading
2/23/2026HouseThird Reading: Passed
2/12/2026SenateRules: PFC
2/2/2026SenateSenate Second Reading
1/26/2026SenateFinance: DP
1/26/2026SenateSenate First Reading
1/22/2026Senate
Bill Text
Chaptered Version
Introduced Version
Senate Engrossed Version (02/12/2026)