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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

6 provisions identified: 3 benefits, 0 costs, 3 mixed.

No deed tax on assignment transfers

Nebraska’s documentary stamp tax does not apply to transfers from an assignor to an assignee made under this assignment law. This lowers the cost to transfer real property into the assignment estate.

Court oversight and cross-state rules

Nebraska courts oversee assignment administration and can remove an assignee for fraud, dishonesty, gross mismanagement, or not following the law. If an assignee leaves or is removed, a named eligible successor takes over or the court appoints one. A departing assignee must turn over assets, share records (courts can order record holders to disclose), send a final accounting to unpaid allowed creditors, and is discharged after all assets are distributed unless work remains. Nebraska recognizes out-of-state assignments with similar outcomes and can appoint an ancillary assignee to control Nebraska assets. The Act applies only to assignments made on or after its effective date, and it limits electronic notice under federal e-signature rules.

Protections for buyers of estate assets

If an assignee sells an asset for value, the buyer gets the assignee’s rights. The assignee’s lien and subordinate interests are discharged, and a good‑faith buyer takes free of those rights even if the assignee did not follow every step. If not taken free, the asset stays subject to existing liens. The assignee can file a record showing a subordinate lien is discharged.

How creditors file claims and get paid

Creditors must file a proof of claim with contact details, the amount, a short basis, any collateral, and a signature under penalty of perjury. The assignee sets one claim deadline between 90 and 210 days and decides how to submit. A proper filing is strong evidence, submits the creditor to Nebraska court, and assigns certain avoidance rights to the assignee. The assignee can dispute a claim but must start a case before final payments and set a dollar‑for‑dollar reserve. Payment order is set: secured creditors first, then administration costs and federal priorities, then wages earned within 180 days before the assignment or business stop, and then other unsecured claims. Securities-related rescission and similar claims are subordinated. For some cross‑state wage or government claims, the other state’s amount is used, and creditors may be treated as that other state’s law would.

How Nebraska businesses start an assignment

Nebraska now uses a uniform law for assignments for the benefit of creditors. It covers organizations with their main office in Nebraska, those governed by Nebraska law, Nebraska residents, and entities they own or control with no staff and that rely on them. The assignment must be written, signed by both sides, cover and describe all assets, explain how money will be shared, and state the assignee’s fees with a sworn “all assets” statement. It takes effect when the last required person signs unless a later date is set. The assignee gets the assignor’s rights in the assets (and for organizations, later-acquired assets), but still subject to existing liens and voidable-transfer laws. Assignees can file UCC notices and must record real estate interests where the property is located.

Who can be assignee and duties

Assignees must be independent. They cannot be a creditor, insider, or affiliate of the assignor or a creditor, and can only have fee claims and no other stake. Contracts cannot excuse an assignee from bad-faith or reckless conduct, and some duties cannot be waived. An assignee is personally liable for breaching fiduciary duties, but is not liable for the assignor’s acts. An assignor is not personally liable for the assignee’s acts. Assignees have a good-faith reliance defense when they reasonably rely on records or qualified professionals, and designated representatives are protected except for gross negligence or willful misconduct.

Sponsors & Cosponsors

Sponsor

  • Bob Hallstrom

    Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 90 • No: 0

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

  1. Approved by Governor on March 3, 2026

    3/3/2026legislature

  2. Presented to Governor on February 27, 2026

    3/3/2026legislature

  3. President/Speaker signed

    2/27/2026legislature

  4. Passed on Final Reading 48-0-1

    2/27/2026legislature

  5. Dispensing of reading at large approved

    2/27/2026legislature

  6. Placed on Final Reading

    2/24/2026legislature

  7. Advanced to Enrollment and Review for Engrossment

    2/17/2026legislature

  8. Kauth FA412 withdrawn

    2/17/2026legislature

  9. Placed on Select File

    2/5/2026legislature

  10. Advanced to Enrollment and Review Initial

    1/30/2026legislature

  11. Placed on General File

    1/28/2026legislature

  12. Notice of hearing for January 27, 2026

    1/15/2026legislature

  13. Referred to Banking, Commerce and Insurance Committee

    1/9/2026legislature

  14. Kauth FA412 filed

    1/8/2026legislature

  15. Date of introduction

    1/7/2026legislature

Bill Text

  • Introduced

    1/7/2026

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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