REPORT ON THE UNIFORM LAWS COMMISSION COMMITTEE ON THE DRAFTING OF A UNIFORM ASSIGNMENT FOR THE BENEFIT OF CREDITORS MEETINGS ON NOVEMBER 17TH AND 18TH, 2023

In early 2023, Daniel Kerrick, Chair of the Legislative Committee of the Commercial Law League of America recommended and the League's Board of Governors approved the appointment of Wanda Borges, Joe Peiffer, Austin Peiffer and Lorna Walker as Observers to the Uniform Laws Commission Committee on the drafting a Uniform Assignment for the Benefit of Creditors ("ABC") statutes. The Study Committee on Assignments for the Benefit of Creditors with Dale Higer and Edwin Smith as Co-Chairs has been meeting since 2022, which meetings resulted in an Updated Report and Recommendation dated February 28, 2023.1 A reference paper was also provided to us regarding "Key Provisions of a Uniform Act on an Assignment for the Benefit of Creditors"2 The meetings on November 17th and 18th followed a pre-set Agenda and discussions took place on the following topics and subtopics: ELIGIBILITY TO BE AN ASSIGNOR: Avoidance Powers Discussion was had regarding the power of the assignee to set aside an unperfected security interest. All concede that the Assignee holds the position as a lien creditor and has superior interest to a secured party.