Title 7

(a) Continuing priority over lien creditor: Perfection requirements satisfied. A security interest that is enforceable immediately before January 1, 2002, and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interes…

A security interest that is enforceable immediately before January 1, 2002, but which would be subordinate to the rights of a person that becomes a lien creditor at that time: (1) remains an enforceable security interest for one year after January 1, 2002; (2) remains enforceable…

(a) Pre-effective-date action; one-year perfection period unless reperfected. If action, other than the filing of a financing statement, is taken before January 1, 2002, and the action would have resulted in priority of a security interest over the rights of a person that becomes…

(a) Initial financing statement in lieu of continuation statement. The filing of an initial financing statement in the office specified in Section 7-9A-501 continues the effectiveness of a financing statement filed before January 1, 2002, if: (1) the filing of an initial financin…

(a) “Pre-effective-date financing statement”. In this section, “pre-effective-date financing statement” means a financing statement filed before January 1, 2002. (b) Applicable law. After January 1, 2002, a person may add or delete collateral covered by, continue or terminate the…

A person may file an initial financing statement or a continuation statement under this part if: (1) the secured party of record authorizes the filing; and (2) the filing is necessary under this part: (A) to continue the effectiveness of a financing statement filed before January…

(a) Law governing priority. This article determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before January 1, 2002, former Article 9 determines priority. (b) Priority if security interest becomes enforce…

Act 2014-374 takes effect on July 1, 2014. (Act 2014-374, p. 1339, §2.)

(a) Pre-effective date transactions or liens. Except as otherwise provided in this part, Act 2014-374 applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before July 1, 2014. (b) Pre-effective date proceedings. Act 2014-3…

(a) Continuing perfection: perfection requirements satisfied. A security interest that is a perfected security interest immediately before July 1, 2014, is a perfected security interest under Article 9A as amended by Act 2014-374 if, when Act 2014-374 takes effect, the applicable…

A security interest that is an unperfected security interest immediately before July 1, 2014, becomes a perfected security interest: (1) without further action, on July 1, 2014, if the applicable requirements for perfection under Article 9A as amended by Act 2014-374 are satisfie…

(a) Pre-effective date filing effective. The filing of a financing statement before July 1, 2014, is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under Article 9A as amended by Act 2014-374. (b) When pr…

(a) Initial financing statement in lieu of continuation statement. The filing of an initial financing statement in the office specified in Section 7-9A-501 continues the effectiveness of a financing statement filed before July 1, 2014, if: (1) the filing of an initial financing s…

(a) Pre-effective date financing statement. In this section, pre-effective date financing statement means a financing statement filed before July 1, 2014. (b) Applicable law. After July 1, 2014, a person may add or delete collateral covered by, continue or terminate the effective…

A person may file an initial financing statement or a continuation statement under this part if: (1) the secured party of record authorizes the filing; and (2) the filing is necessary under this part: (A) to continue the effectiveness of a financing statement filed before Act 201…

Act 2014-374 determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before July 1, 2014, Article 9A as it existed before amendment determines priority. (Act 2014-374, p. 1339, §2.)

This part shall be known and may be cited as the Uniform Assignment for Benefit of Creditors Act. (Act 2026-581, §1.)

For the purposes of this part, the following terms have the following meanings: (1) AFFILIATE. Includes: a. A person that directly or indirectly owns, controls, or holds, with power to vote, 20 percent or more of the outstanding voting interests of another person, other than a pe…

This part applies to an assignment made by an assignor that is: (1) An organization whose principal place of business is in this state; (2) An organization whose internal affairs are governed by the law of this state; (3) An individual whose principal residence is in this state; …

(a) An assignee must be a person that: (1) Is not a creditor, affiliate, or insider of the assignor; (2) Is not an affiliate or insider of a creditor of the assignor; (3) Does not have a claim against the assignment estate, other than a claim for fees and expenses to be paid unde…

(a) An assignee obtains the rights, title, and interests of the assignor in the assigned assets. (b) Unless the assignor is an individual, an assignee obtains the rights, title, and interests of the assignor in assets acquired after the assignment. (c) Except as provided in Secti…

(a) In this section, “financing statement” has the meaning in Section 7-9A-102(a)(39). (b) An assignee of a legal or equitable interest in personal property may file a financing statement in the filing office of: (1) This state, established for purposes of Section 7-9A-501(a)(2);…

(a) Unless a creditor waives the right to notification in a signed record, an assignee shall send a notification of the assignment to each creditor known to the assignee within a reasonable time not to exceed 30 days after the effective date of the assignment agreement. (b) The n…

(a) Subject to Section 7-9A-923, an assignor has a duty to take all reasonable actions necessary for the assignee to administer the assignment, the assigned assets, and the assignment estate. (b) In furtherance of the duty under subsection (a), the assignor shall: (1) Preserve an…

(a) Subject to Section 7-9A-923, an assignee has a fiduciary duty to the assignment estate for the benefit of creditors: (1) Of loyalty, including the duty to manage the assignment in good faith; (2) To use reasonable care to maximize distributions under Section 7-9A-915; and (3)…

(a) An assignee has the powers necessary or appropriate to perform the assignee’s duties. (b) Unless the assignment agreement expressly provides otherwise, the assignee has power to: (1) Operate an existing business that uses an assigned asset, including preservation of the asset…

(a) An assignee shall allow a creditor’s claim if: (1) The creditor submits a proof of claim in compliance with Section 7-9A-913; and (2) The assignee does not dispute the claim under Section 7-9A-912 before final distribution. (b) An assignee may: (1) Allow a claim, pay a known …

(a) An assignee may dispute a creditor’s claim before final distribution by sending notice in a record stating the nature of the assignee’s dispute to the creditor. (b) If a dispute cannot be resolved consensually, the assignee may commence a proceeding to disallow the claim unde…

(a) A proof of claim must: (1) State the name, address, and other contact information reasonably necessary to communicate with the creditor; (2) State the amount of the claim; (3) Briefly state the nature of the claim; (4) Identify any asset of the assignment estate securing the …

(a) An assignee’s disposition of assets: (1) Transfers to a transferee for value all of the assignee’s rights in the assets; (2) Discharges the assignee’s lien as a lien creditor and, to the extent the assignment creates a security interest in favor of the assignee, the assignee’…

(a) In this section, “protected secured creditor” means a secured creditor whose lien: (1) Is a perfected lien; (2) Cannot be avoided by the assignee under Section 7-9A-910(b)(12); and (3) Is not subordinate to the lien of the assignee. (b) Except as provided in Section 7-9A-916,…

(a) A subordination agreement is enforceable under this part to the same extent the agreement is enforceable under other law. (b) Subject to subsection (c), the following claims are subordinate to a claim or interest that is senior or equal in priority to a claim or interest repr…

(a) An assignor is not personally liable for an act or omission by the assignee. (b) An assignee is not personally liable for an act or omission by the assignor. (c) If an assignor designates a representative that may act on behalf of the assignor under Section 7-9A-908(b)(4), th…

(a) The assignor or a creditor may request the circuit court to remove the assignee if the assignor or creditor has a reasonable belief grounds for removal exist under subsection (b). (b) After a request under subsection (a) or on the court’s initiative in an action pending befor…

(a) On completion of an assignee’s duties, the assignee shall send a creditor whose claim is allowed under Section 7-9A-911, and not satisfied in full, a final accounting sufficient to inform the creditor of all material aspects of the assignment, including: (1) A description of …

(a) Subject to subsection (b), an assignment made under the law of another state must be recognized and enforced on an issue if the result for the issue would be substantially similar to the result for the issue if the assignment had been made under this part. (b) If a claim for …

(a) The circuit court may hear and resolve a matter involving the administration of an assignment or the exercise of an assignee’s powers and duties, including a request for instructions or approval or to declare rights. (b) Without limiting the rights of the assignee or a credit…

(a) Subject to other law of this state governing a person from another state serving as a fiduciary in this state, the circuit court may appoint a person serving as an assignee in an assignment in another state, or the person’s nominee, as an ancillary assignee relating to assign…

(a) Except as provided in this section and Section 7-9A-910(b), this part may not be varied by agreement. (b) The duties under Sections 7-9A-908(a) and 7-9A-909(a) may not be disclaimed by agreement. An assignor and the assignee may determine by agreement the standards measuring …

In applying and construing this part, a court shall consider the promotion of uniformity of the law among states that enact this uniform act. (Act 2026-581, §24.)

This part modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. § 7001 et seq., but does not modify, limit, or supersede 15 U.S.C. § 7001(c), or authorize electronic delivery of any of the notices described in 15 U.S.C. § 7003(b)…

This part applies to an assignment made on or after October 1, 2026. (Act 2026-581, §26.)

This title shall become effective at midnight on December 31, 1966. It applies to transactions entered into and events occurring after that date. (Acts 1965, No. 549, p. 811.)

(1) The following acts and all other acts and parts of acts inconsistent herewith are hereby repealed: Code of Alabama 1940: Title 2, Sections 504-567, inclusive; Title 5, Section 135 and Section 136; Title 7, Section 401 and Section 402; Title 9, Sections 10-13, inclusive; Title…

Except as provided in Section 7-10-104, all acts and parts of acts inconsistent with this title are hereby repealed. (Acts 1965, No. 549, p. 811.)

(1) The article on documents of title (Article 7) does not repeal or modify any laws prescribing the form or contents of documents of title or the services or facilities to be afforded by bailees, or otherwise regulating bailees’ businesses in respects not specifically dealt with…