H0491: Assignment for the Benefit of Creditors

Legislative Summary

Revises requirements for commencement of proceedings for general assignments; provides courts with judicial discretion to determine compliance; provides for assignee's ability to rely on, & defense for good faith compliance with, court orders, judgments, decrees, & rules of law; establishes nonliability of assignee when certain requirements are met; limits assets creditor or other party in interest may pursue in action against assignee; excludes creditors from being required to turn over assets of estate upon notice of assignment action or proceeding; requires negative notice in assignment action by assignee upon filing of notice of rejection.