All Roll Calls
Yes: 175 • No: 0
IowaSF 249791st General Assembly (2025–2026)SenateWALLET
A bill for an act providing for an assignment of assets for the benefit of creditors, exempting the related tax on the transfer of real estate, and including effective date provisions. (Formerly SF 2213.) Effective date: 01/01/2027.
Sponsored By: COMMITTEE ON WAYS AND MEANS
Signed by Governor
ways and means
Your PRIA Score
Score Hidden
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
4 provisions identified: 2 benefits, 0 costs, 2 mixed.
No real estate transfer tax in assignments
Beginning January 1, 2027, real estate transferred from a debtor to an assignee under this process is exempt from Iowa’s real estate transfer tax. This lowers closing costs when property moves into the assignment estate.
New Iowa debt assignment system in 2027
Beginning January 1, 2027, Iowa has a uniform process called an assignment for the benefit of creditors. It lets a debtor transfer all assets to an assignee to pay creditors under clear rules. It applies to Iowa residents and to businesses with their main office in Iowa or governed by Iowa law, and some related affiliates. District courts oversee these cases and can issue orders. Iowa recognizes similar out‑of‑state assignments and can appoint an ancillary assignee for Iowa assets. Electronic records and signatures work here, but federal limits still control some notices. The law applies only to assignments made on or after January 1, 2027, repeals the old chapter 681, and updates code references.
How creditors file and get paid
Starting January 1, 2027, the assignee must notify each known creditor within 30 days after the assignment takes effect. The notice must include how to file and the one claims deadline. The assignee must set a single claims deadline 120 days after the assignment’s effective date. A proof of claim must be signed under penalty of perjury, include records, and is treated as evidence if timely. Timely claims are allowed unless disputed; unpaid parts are valued as of the effective date. If disputed, the assignee must start a court case before final payout and reserve cash dollar‑for‑dollar. Money is paid in order: secured claims tied to assets, costs of administration, federal‑priority claims, wage‑priority claims (within limits), then other unsecured claims; if short, payments are pro rata. Written subordination deals are enforceable, and some securities‑related claims are paid after senior claims.
Assignee duties, powers, and limits
Starting January 1, 2027, the assignee cannot be the debtor’s creditor, affiliate, or insider. The signed assignment agreement must transfer all assets, set payout methods, and disclose assignee fees. The debtor must turn over assets and give verified lists of assets, employees, and known creditors under penalty of perjury. The assignee can run or wind down the business, sell assets, borrow, hire professionals, and sue or settle claims. The assignee files UCC papers for personal property and must record real estate transfers where the property sits. Good‑faith buyers take clear of the assignee’s lien and some junior liens. Liability is limited for good‑faith acts, but not for bad faith or gross negligence. An assignee can be removed, a successor takes over records and assets, and a final accounting goes to creditors. Many core duties cannot be waived by private agreement.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON WAYS AND MEANS
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 5/3/2026
Passed Senate
Yes: 45 • No: 0
House vote • 5/2/2026
Passed House
Yes: 86 • No: 0
Senate vote • 4/20/2026
Passed Senate
Yes: 44 • No: 0
Actions Timeline
Signed by Governor.
6/2/2026GovernorReported correctly enrolled, signed by President and Speaker, and sent to Governor.
5/18/2026SenateImmediate message.
5/3/2026legislaturePassed Senate, yeas 45, nays 0.
5/3/2026SenateSenate concurred with S-5257.
5/3/2026SenateMessage from Senate.
5/2/2026SenateMessage from House, with amendment S-5257.
5/2/2026HouseImmediate message.
5/2/2026legislatureExplanation of vote.
5/2/2026legislaturePassed House, yeas 86, nays 0.
5/2/2026HouseAmendment H-8473 filed, adopted.
5/2/2026legislaturePlaced on Ways and Means calendar.
5/1/2026legislatureCommittee vote: Yeas, 24. Nays, 0. Excused, 1.
5/1/2026legislatureCommittee report, recommending passage.
5/1/2026legislatureSubcommittee: Gustoff, Jacoby and Jones.
5/1/2026legislatureRead first time, referred to Ways and Means.
4/21/2026legislatureMessage from Senate.
4/20/2026SenateImmediate message.
4/20/2026legislaturePassed Senate, yeas 44, nays 0.
4/20/2026SenateCommittee report, approving bill.
4/15/2026legislatureIntroduced, placed on Ways and Means calendar.
4/15/2026legislature
Bill Text
As Introduced
Enrolled
Related Bills
HF 2783 — A bill for an act relating to and making appropriations to the education system, including the funding and operation of the department for the blind, department of education, state board of regents, department of workforce development, and Iowa special education council. (Formerly HSB 778.) Effective date: 07/01/2026.
SF 2490 — A bill for an act relating to oil and gas production, including filing requirements, the authority of the department of natural resources, confidential information, pooling orders, negotiation of surface damage, imposition and distribution of a tax, and jurisdiction, and providing civil penalties. (Formerly SF 2449, SF 546, SF 268.) Effective date: 07/01/2026.
HF 2782 — A bill for an act relating to and making appropriations to the department of veterans affairs and the department of health and human services, including aging and disability services, behavioral health, public health, and community access and eligibility; the medical assistance program, state supplementary assistance, Hawki, and other health-related programs; family well-being and protection; state-operated specialty care; administration and compliance; transfers, cash flow, and nonreversions; report on nonreversion of moneys; more options for maternal support program; reimbursement rates review; mental diseases exclusion waiver; full-time equivalent dashboard; comprehensive family support program; federal community mental health services block grant; behavioral health expenditure report; opioid settlement fund; emergency rules; graduate medical education; and special population nursing facilities; and including effective date and retroactive applicability provisions. (Formerly HSB 777.) Effective date: 06/02/2026, 07/01/2026. Applicability date: 07/01/2025.
HF 2799 — A bill for an act relating to matters under the purview of the economic development authority, the utilities commission, and the department of education, including creation of the headquarters expansion and development for growth and employment program, and the business incentives for growth program training fund; repeal of the new jobs tax credit program; the major economic growth attraction program; load forecasting and analysis of electric transmission system expansion plans; creation of the electric transmission system expansion planning and analysis and load forecasting fund; the industrial new jobs training program; and establishing the new jobs training program interim study committee; and including effective date provisions. (Formerly HSB 755.) Effective date: 06/02/2026, 07/01/2026.
HF 2768 — A bill for an act relating to and making appropriations for state government administration and regulation, including the department of administrative services, auditor of state, ethics and campaign disclosure board, offices of governor and lieutenant governor, department of inspections, appeals, and licensing, department of insurance and financial services, department of management, Iowa public employees’ retirement system, public information board, department of revenue, secretary of state, treasurer of state, and utilities commission. (Formerly HSB 771.) Effective date: 07/01/2026.
HF 2770 — A bill for an act relating to and making appropriations to the justice system, providing fees, and including applicability provisions. (Formerly HSB 775.) Effective date: 07/01/2026. Applicability date: 07/01/2026.