The proposed bill introduces the "Uniform Assignment for Benefit of Creditors Act" into the Code of West Virginia, establishing a structured framework for individuals or organizations to assign their assets for the benefit of creditors during financial distress. It defines key terms such as "assignor," "assignee," and "assigned asset," and outlines the requirements for assignment agreements, including the necessity for a signed record detailing asset transfers and the distribution of the assignment estate. The bill clarifies the roles and responsibilities of both assignors and assignees, mandating that assignees notify creditors within a specified timeframe and ensuring compliance with existing laws regarding filing, recording, and title transfer of assigned assets.

Furthermore, the legislation delineates the duties and powers of assignors and assignees, emphasizing the fiduciary responsibility of assignees to manage the assignment estate for the benefit of creditors. It establishes a priority order for claims against the assignment estate and details the process for creditors to submit claims, including conditions for allowing or disputing claims. The bill also addresses liability issues, ensuring that assignors and assignees are not personally liable for each other's actions except in cases of gross negligence or willful misconduct. Overall, the act aims to create a uniform legal framework that enhances the efficiency and fairness of the asset assignment process in West Virginia.

Statutes affected:
Introduced Version: 46C-1-1, 46C-1-2, 46C-1-3, 46C-1-4, 46C-1-5, 46C-1-6, 46C-1-7, 46C-1-8, 46C-1-9, 46C-1-10, 46C-1-11, 46C-1-12, 46C-1-13, 46C-1-14, 46C-1-15, 46C-1-16, 46C-1-17, 46C-1-18, 46C-1-19, 46C-1-20, 46C-1-21, 46C-1-22, 46C-1-23, 46C-1-24, 46C-1-25, 46C-1-26, 46C-1-27