At its recently-concluded 134th Annual Meeting in Santa Fe, New Mexico, the Uniform Law Commission (ULC) approved three new acts.
Uniform Assignment for Benefit of Creditors Act
An assignment for benefit of creditors (ABC) is a voluntary, debtor-initiated state law alternative to the bankruptcy process, state receiverships and voluntary workouts. An assignment is a liquidation procedure in which the "assignor" voluntarily assigns all of its assets to an "assignee", a fiduciary, which liquidates the assets and distributes the proceeds to the assignor's creditors. The assignment operates through the creation of a fiduciary relationship with the assignor's creditors as the beneficiaries. The Uniform Assignment for the Benefit of Creditors Act is intended to provide greater clarity and consistency to the assignment process. The act provides for a streamlined assignment process, allowing states to modernize their assignment statutes and codify aspects of common law. It sets out a straightforward process for commencing and completing an assignment and provides a scheme for distributions to the assignor's creditors. It lays out the duties and powers of the assignor and assignee, a process for allowing and disputing claims, and limitations on liability for the assignor and assignee.
Uniform Judicial Interview of Children Act
Existing laws in many states permit judges in certain private civil proceedings to interview children outside of open court to ascertain the child's views. The laws in most states, however, do not provide a comprehensive framework for conducting judicial interviews of children. The Uniform Judicial Interview of Children Act provides procedures and standards relating to such interviews in proceedings regarding child custody, visitation, parenting time, relocation, other custodial rights, and some other ancillary private matters. The act balances two compelling, but sometimes competing, interests: protecting a child when that child's views are solicited by a judicial officer, and protecting the due process rights of the parties. Under the act, when a court is conducting a judicial interview, the court must assess the child's maturity and ability to communicate and express views free of parental influence. This act includes provisions that ensure that a party's due process rights are respected when a child communicates information that impacts a party's fundamental rights. Judicial interviews under this act provide the child with an effective opportunity to be heard while protecting the due process rights of other parties. While this act is drafted as a statute, a state may choose to pursue adoption of the act as a court rule.
Model State Uniform Law Commission Act
In 1944, the Uniform Law Commission (ULC) adopted a model act to help states establish commissions on uniform state laws and appoint commissioners. This 1944 Act was adopted in 17 states, with 48 states now having some statute for appointing commissioners. Since then, changes in state government structure, legislative drafting practices, and updates to the ULC Constitution have prompted the need for a modernized version. The new Model State Uniform Law Commission Act updates and expands on the 1944 Act while keeping its core structure, which includes: establishing a state commission; appointment of commissioners; outlining duties of the commission; funding and reimbursement provisions; requiring reports on the commission's work. The Act is not intended for universal adoption. It is meant for states lacking such legislation or where existing laws are outdated. States with existing laws may also choose to only enact certain sections of the Act to modernize provisions in the existing appointment statute or to expand the size of the state delegation.
Other drafts which were debated at the ULC annual meeting, but which were not scheduled for final approval, include the Conflict of Law in Trust and Estate Acts, the Transfers to Minors Act, the Child Digital Entertainers Act, the Occupational Licenses of Servicemembers and Military Spouses Act, the Commercial Financing Disclosure Act, and the Indian Child Welfare Act Issues Act.
The current draft of all of these acts can be found at the ULC's website at www.uniformlaws.org.
The ULC, now in its 134th year, comprises more than 350 practicing lawyers, governmental lawyers, judges, law professors, and lawyer-legislators from every state, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. Commissioners are appointed by their states to draft and promote enactment of uniform laws that are designed to solve problems common to all the states.
After receiving the ULC's seal of approval, a uniform or model act is officially promulgated for consideration by the states, and legislatures are urged to adopt it. Since its inception in 1892, the ULC has been responsible for more than 200 acts, among them such bulwarks of state statutory law as the Uniform Commercial Code, the Uniform Probate Code, the Uniform Partnership Act, and the Uniform Interstate Family Support Act.
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Uniform Law Commission / 111 N. Wabash Ave., Suite 1010, Chicago IL 60602
312/450-6600 / www.uniformlaws.org
Contact: Katie Robinson, ULC Senior Director, Strategy & Communications, krobinson@...
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Katie Robinson
Senior Director for Strategy and Communications
Chicago IL
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