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Abstract: In October of 2025 the Uniform Law Commission promulgated the Uniform Assignment for Benefit of Creditors Act (the “Act”). The Act provides for the use of an assignment for benefit of creditors (an “ABC”) as an additional method in the enacting state for the winding up of a distressed business in an efficient and flexible manner. In situations where an ABC is appropriate, an ABC under the Act may reduce transaction costs, and provide for greater recoveries by creditors of the distressed business, than other alternatives for winding up the business. This Article explains the background leading to the promulgation of the Act and then summarizes many of the Act's provisions.
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