Title 6, Title 6: Assignment for Benefit of Creditors

6-2-101. Definitions. As used in this chapter: (1) "Affiliate" means: a person that directly or indirectly owns, controls, or holds, with power to vote, 20% or more of the outstanding voting interests of another person, other than a person that holds the interests: in a fiduciary…

6-2-102. Scope. This chapter 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 other law of this state; (3) an individual whose principal residen…

6-2-103. Requirements for assignee and assignment agreement. (1) An assignee must be a person that: is not a creditor, affiliate, or insider of the assignor; is not an affiliate or insider of a creditor of the assignor; does not have a claim against the assignment estate, other t…

6-2-104. Effect of assignment -- When assignment agreement effective. (1) An assignee obtains the rights, title, and interests of the assignor in the assigned assets. (2) If the assignor is an organization, an assignee obtains the rights, title, and interests of the assignor in a…

6-2-105. Filing, recording, and title transfer requirements. (1) In this section, "financing statement" has the same meaning as that term is defined in Section 70A-9a-102. (2) An assignee of a legal or equitable interest in personal property may file a financing statement in the …

6-2-106. Notification to creditors. (1) Unless a creditor waives in a signed record the right to notification, 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…

6-2-107. Duties of assignor. (1) Subject to Section, 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. 6-2-121 (2) In furtherance of the duty under Subsection, the assigno…

6-2-108. Duties of assignee. (1) Subject to Section, an assignee has a fiduciary duty to the assignment estate for the benefit of creditors: 6-2-122 of loyalty, including the duty to manage the assignment in good faith; to use reasonable care to maximize distributions under Secti…

6-2-109. Powers of assignee. (1) An assignee has the powers necessary or appropriate to perform the assignee's duties. (2) Unless the assignment agreement expressly provides otherwise, the assignee has power to: operate an existing business that uses an assigned asset, including …

6-2-110. Allowed claim. (1) An assignee shall allow a creditor's claim if: the creditor submits a proof of claim in compliance with Section; and 6-2-112 the assignee does not dispute the claim under Sectionbefore final distribution. 6-2-111 (2) An assignee may: allow a claim, pay…

6-2-111. Disputed and disallowed claims. (1) An assignee may dispute a creditor's claim before final distribution by sending notification in a record stating the nature of the assignee's dispute to the creditor. (2) If a dispute cannot be resolved consensually, the assignee may c…

6-2-112. Proof of claim. (1) A proof of claim must: state the name, address, and other contact information reasonably necessary to communicate with the creditor; state the amount of the claim; briefly state the nature of the claim; identify any asset of the assignment estate secu…

6-2-113. Rights of transferees. (1) An assignee's disposition of an asset: transfers to a transferee for value all of the assignee's rights in the asset; discharges the assignee's lien and, to the extent the assignment creates a security interest in favor of the assignee, the ass…

6-2-114. Distributions. (1) In this section, "protected secured creditor" means a secured creditor whose lien: is a perfected lien; cannot be avoided by the assignee under Subsection; and 6-2-109(2)(l) is not subordinate to the assignee's lien. (2) Except as provided in Section, …

6-2-115. Claim subordination. (1) A subordination agreement is enforceable under this chapter to the same extent the agreement is enforceable under other law. (2) Subject to Subsection, the following claims are subordinate to a claim or interest that is senior or equal in priorit…

6-2-116. Liability. (1) An assignor is not personally liable for an act or omission by the assignee. (2) An assignee is not personally liable for an act or omission by the assignor. (3) A representative designated by an assignor under Subsectionis exculpated to the same extent as…

6-2-117. Assignee removal -- Successor assignee. (1) The assignor or a creditor may request a court with jurisdiction to remove the assignee, if the assignor or creditor has reasonable grounds for removal exist under Subsection. (2) (2) After a request under Subsectionor on the c…

6-2-118. Winding up. (1) On completion of an assignee's duties, the assignee shall send a creditor whose claim is allowed under Section, and not satisfied in full, a final accounting sufficient to inform the creditor of all material aspects of the assignment, including: 6-2-110 a…

6-2-119. Interstate matters. (1) Subject to Subsection, 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 …

6-2-120. Court action. (1) A court with jurisdiction 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. (2) Without limiting the rig…

6-2-121. Ancillary assignee. (1) Subject to other law of this state governing a person from another state serving as a fiduciary in this state, a court with jurisdiction may appoint a person serving as an assignee in an assignment in another state, or the person's nominee, as an …

6-2-122. Provisions variable by agreement. (1) Except as provided in this section and Subsection, the provisions of this chapter may not be varied by agreement. 6-2-109(2) (2) The duties under Subsectionsandmay not be disclaimed by agreement. 6-2-107(1) 6-2-108(1) An assignor and…

6-2-123. Uniformity of application and construction. In applying and construing this uniform act, a court with jurisdiction shall consider the promotion of uniformity of the law among states that enact this uniform act.

6-2-124. Relation to Electronic Signatures in Global and National Commerce Act. This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Sec. 7001 et seq., as amended, but does not modify, limit, or supersede 15 U.S.C. …

6-2-125. Transitional provision. This chapter applies to an assignment made on or after the effective date of this chapter.