All Roll Calls
Yes: 90 • No: 0
NebraskaLB783109th Legislature 1st and 2nd SessionslegislatureWALLET
Adopt the Uniform Assignment for Benefit of Creditors Act and provide an exemption to the documentary stamp tax
Sponsored By: Bob Hallstrom
Signed by Governor
Banking, Commerce and Insurance Committee
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 4 benefits, 0 costs, 3 mixed.
No stamp tax on assignment transfers
Transfers from an assignor to an assignee under this Act do not owe Nebraska documentary stamp tax. This lowers closing costs when real property moves into the assignment estate. The exemption applies only to assignment transfers made under this law.
Assignee powers and buyer protections
Assignees may run or wind down the business, hire help, borrow, collect, and sell assets. They can undo some pre‑assignment transfers, like a bankruptcy trustee could, to bring value back. A good‑faith buyer from the assignee takes clean title, and subordinate liens are discharged to the extent of the sale.
How creditors file and get paid
Assignees act as fiduciaries for creditors. Within 30 days, they must notify known creditors how to file a proof of claim; the filing deadline must be 90–210 days after the assignment. A proper, signed proof of claim is strong evidence and assigns avoidance rights to the assignee. Undisputed timely claims are allowed; disputed claims require a dollar‑for‑dollar reserve until a court decides. Assignees keep a separate account, pay estate costs, send six‑month updates, and deliver a final accounting before discharge.
Out-of-state assignments recognized in Nebraska
Nebraska recognizes assignments made under other states’ laws when the result would be substantially similar. For priorities like wages or government claims, the assignee may use the amounts set by the other state. A Nebraska court may also appoint an ancillary assignee to control assets located in Nebraska, and local holders must turn them over.
Guardrails on liability and removal
Assignors and assignees are not personally liable for each other’s acts. An assignor’s representative is protected unless they act with gross negligence or willful misconduct. Courts can remove an assignee for fraud, dishonesty, incompetence, gross mismanagement, or failure to follow the Act, and appoint a successor. Departing assignees must account for and turn over assets.
New state process to repay creditors
This law creates a Nebraska assignment process to pay creditors outside bankruptcy. It applies when the assignor has a Nebraska tie, like a principal place of business or home in the state. The assignor and a conflict‑free assignee must sign a record that transfers all assets, states fees and a distribution plan, and includes a sworn statement. The assignee steps into the assignor’s rights in the assets and can file UCC and land records to show the transfer; Nebraska courts can issue orders in these cases. The assignor must preserve and turn over assets and give sworn lists of assets, employees, and known creditors. Parties cannot waive core duties, and e‑signature and e‑notice follow limits set by federal E‑SIGN.
Who gets paid first in assignments
The law sets who gets paid first from sale proceeds. Protected secured creditors are paid from their collateral first. Next come administrative costs, then federal priority claims, then wages earned within 180 days before the assignment or business shutdown, then other priority claims, and finally general unsecured claims pro rata. Subordination agreements are enforced, and some securities‑related claims are pushed below senior debt, sometimes down to equity level.
Sponsors & Cosponsors
Sponsor
Bob Hallstrom
legislature
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 2/27/2026
Final Reading
Yes: 48 • No: 0 • Other: 1
legislature vote • 1/30/2026
Vote
Yes: 42 • No: 0 • Other: 7
Actions Timeline
Presented to Governor on February 27, 2026
3/3/2026legislatureApproved by Governor on March 3, 2026
3/3/2026legislatureDispensing of reading at large approved
2/27/2026legislaturePassed on Final Reading 48-0-1
2/27/2026legislaturePresident/Speaker signed
2/27/2026legislaturePlaced on Final Reading
2/24/2026legislatureKauth FA412 withdrawn
2/17/2026legislatureAdvanced to Enrollment and Review for Engrossment
2/17/2026legislaturePlaced on Select File
2/5/2026legislatureAdvanced to Enrollment and Review Initial
1/30/2026legislaturePlaced on General File
1/28/2026legislatureNotice of hearing for January 27, 2026
1/15/2026legislatureReferred to Banking, Commerce and Insurance Committee
1/9/2026legislatureKauth FA412 filed
1/8/2026legislatureDate of introduction
1/7/2026legislature
Bill Text
Introduced
3/3/2026
Enrolled / Slip Law
Final / Enacted