LB 783 — Adopt the Uniform Assignment for Benefit of Creditors Act and provide an exemption to the documentary stamp tax

LB783 LB783 2026 LEGISLATURELEGISLATIVE OFBILL NEBRASKA783 ONEApproved HUNDREDby NINTHthe LEGISLATUREGovernor SECONDMarch SESSION3, LEGISLATIVE2026 BILL 783 FINAL READING   Introduced by Hallstrom, 1.

Read  firstA timeBILL JanuaryFOR 07,AN 2026ACT Committee:relating to liens;

Banking, Commerce and Insurance A BILL FOR AN ACT relating to liens;

Be it enacted by the people of the State of Nebraska, -1- LB783 LB783 2026 Section 1.

or (B) if the assignor is an individual, a legal or equitable interest in property to the extent it is exempt from legal process under other -2- LB783 LB783 2026 law.

or -3- LB783 LB783 2026 (iii) an organization of which the individual is a director, officer, or person in control;

or (iv) a relative of a general partner, managing member, director, officer, manager, or other person in control of or with controlling equity interest in -1- LB783 LB783 2026 the organization;

-4- LB783 LB783 2026 (19) Proof of claim means a record a creditor submits to an assignee to evidence the creditor's claim.

or (B) to cause the record or notification to be received within the time it would have been received if properly sent under subdivision (23)(23)(A) (A) of this section.

-5- LB783 LB783 2026 (1) an organization whose principal place of business is in this state;

and (6) is not an affiliate of a person that fails to satisfy subdivision (a)(1),(a) (1), (2), (3), (4), or (5) of this section.

-6- LB783 LB783 2026 (2) transfer or provide for a transfer of all the assignor's assets;

-2- LB783 LB783 2026 (5) describe the fees to be charged by the assignee in connection with the assignment, including the basis on which they are to be calculated;

 (a)(a) An assignee obtains the rights, title, and interests of the assignor in the assigned assets.

-7- LB783 LB783 2026 (b) An assignee of a legal or equitable interest in personal property may file a financing statement in the filing office of:

-8- LB783 LB783 2026 (h) An assignee shall comply with other law governing the transfer of title to an asset.

-9- LB783 LB783 2026 (1) preserve and turn over to the assignee the assigned assets in the assignor's possession or control;

-3- LB783 LB783 2026 (2) provide to the assignee information reasonably necessary to administer the assignment, the assigned assets, and the assignment estate;

-10- LB783 LB783 2026 (c) The duties in this section also apply to a representative designated under subdivision (b)(4) of this section.

-11- LB783 LB783 2026 (7) unless a claim would receive minimal or no distribution without regard to the claim's validity or asserted priority, examine the validity and priority of claims against the assignment estate and, if necessary, consult with the representative designated by the assignor under subdivision (b)(4) of section 8 of this act;

 (a)(a) An assignee has the powers necessary or appropriate to perform the assignee's duties.

(4) engage professionals, including a professional previously engaged by the assignor, to give advice, to prosecute or defend litigation, or for other -4- LB783 LB783 2026 purposes as the assignee considers appropriate, and pay professionals reasonable fees for services from the assignment -12- LB783 LB783 2026 estate;

(d) For the purpose of exercising the assignee's power under subdivision (b)(12) of this section, exercising a voidable-transaction remedy, or otherwise establishing the priority of the assignee's interest, an assignee has a lien on the assignment estate and the status -13- LB783 LB783 2026 of:

or (2) allow and pay a claim evidenced by a late-filed proof of claim, -14- LB783 LB783 2026 if the assignee determines there is a reasonable basis for excusing the late filing.

-5- LB783 LB783 2026 (b) If a dispute cannot be resolved consensually, the assignee may commence a proceeding under section 21 of this act to disallow the claim.

The assignee must commence the proceeding before final distribution under -15- LB783 LB783 2026 section 15 of this act.

-16- LB783 LB783 2026 Sec.

(7) be submitted using the method established under subdivision (b)(b)(5) (5) of section 9 of this act;

(b) A transferee that acts in good faith takes free of the rights and interests described in subsection (a) of this section, even if the assignee fails to comply with the Uniform Assignment for Benefit of -17- LB783 LB783 2026 Creditors Act or the requirements of a judicial proceeding.

(2) cannot be avoided by the assignee under subdivision (b)(12) of section 10 of this act;

and -6- LB783 LB783 2026 (3) is not subordinate to the assignee's lien.

(c) Unless otherwise agreed between the assignee and a protected secured creditor, before distributions under subsections (d), (e), (f), and (g) of this section, and in accordance with the priorities of -18- LB783 LB783 2026 creditors with liens under other law, the protected secured creditor shall receive the asset or the proceeds from the collection on or disposition of the asset to the extent of the value of the protected secured creditor's interest in the asset, less the assignee's reasonable and necessary expenses of preserving or disposing of the asset to the extent the expenses benefit the protected secured creditor and are incurred with the protected secured creditor's consent or acquiescence.

(e) After the distributions under subsections (c) and (d) of this section, the assignee shall pay claims entitled to priority under federal -19- LB783 LB783 2026 law including under 31 U.S.C.

-20- LB783 LB783 2026 (j) An assignee may make interim distributions after considering future expenses and the reserves for disputed claims established under subsection (c) of section 12 of this act.

-7- LB783 LB783 2026 Sec.

(c) A representative designated by an assignor under subdivision (b)(b)(4) (4) of section 8 of this act is exculpated to the same extent as a person acting on behalf of the assignor under other law had there been no assignment, except for an act or omission resulting from the representative's gross negligence or willful misconduct.

(d) A term of an assignment agreement relieving the assignee of liability is unenforceable to the extent the agreement relieves the -21- LB783 LB783 2026 assignee of liability for an act or omission committed in bad faith or with reckless indifference to the purposes of the assignment or the interests of the creditors of the assignment estate.

-22- LB783 LB783 2026 (1) for cause, including the assignee's fraud, dishonesty, incompetence, gross mismanagement, or failure to comply with the Uniform Assignment for Benefit of Creditors Act;

(a) On completion of an assignee's duties, the assignee shall send a creditor whose claim is allowed under section 11 of this -23- LB783 LB783 2026 act, and not satisfied in full, a final accounting sufficient to inform the creditor of all material aspects of the assignment, including:

-8- LB783 LB783 2026 (6) a description of additional work to be done by the assignee to complete the administration of the assignment estate and the distributions under section 15 of this act;