SB15 Alabama 2026 Session

Updated Feb 12, 2026

Summary

Primary Sponsor: Sam GivhanSenator
Republican
Session: 2026 Regular Session
Title: Uniform Assignment for Benefit of Creditors Act; creates a voluntary state law process for distressed organizations to liquidate assets and distribute proceeds to creditors
Summary: SB15 creates a Uniform Assignment for Benefit of Creditors Act in Alabama, offering a voluntary state process for distressed organizations to liquidate assets and distribute proceeds to creditors outside of federal bankruptcy.
What This Bill Does
SB15 establishes a voluntary Alabama option called the Uniform Assignment for Benefit of Creditors Act. It lets an assignor (a distressed organization) transfer all of its assets to an assignee to liquidate and pay creditors, under rules that apply in Alabama. It sets up requirements for the assignment agreement, filing and title transfers, notice to creditors, claim submission, and a priority-based distribution of assets, with a final accounting and possible removal of the assignee.

Who It Affects
Distressed organizations in Alabama (assignors) who choose to liquidate assets under the act.
Creditors (including secured, unsecured, and protected secured creditors) who hold claims against the assignor and may participate by filing proofs of claim and receiving distributions.

Key Provisions
Creates the Uniform Assignment for Benefit of Creditors Act as a voluntary state option for liquidation and distribution to creditors.
Defines key terms including assignor, assignee, assigned asset, claim, and assignment.
Applies to certain entities meeting Alabama-based criteria and requires a signed, detailed assignment agreement.
Requires filing/recording and notice to creditors; includes title transfer and fee provisions.
Requires the assignee to administer the estate with fiduciary duties and detailed accounting, and provides for obligations of the assignor to assist.
Provides a process for proof of claim, disputed claims, and priority-based distributions among creditors.
Allows for removal of the assignee for cause and appointment of a successor; provides for winding up with final accounting.
Addresses interstate recognition, ancillary assignees, and transition rules including effective date and applicability.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Businesses & Financial Institutions