Alabama § 7-9A-909 - Duties of Assignee.

§ 7-9A-909. Duties of Assignee.

(a) Subject to Section 7-9A-923, an assignee has a fiduciary duty to the assignment estate for the benefit of creditors:

(1) Of loyalty, including the duty to manage the assignment in good faith;

(2) To use reasonable care to maximize distributions under Section 7-9A-915; and

(3) To wind up the assignment under Section 7-9A-919 in a manner compatible with the best interests of the assignment estate and creditors.

(b) Without limitation on the duties under subsection (a), and subject to Section 7-9A-923, the assignee shall also have a duty to:

(1) Maintain a separate deposit account for funds related to the assignment;

(2) Collect on or dispose of each assigned asset, unless the assignee determines it is more economically efficient to abandon the asset;

(3) Prepare and retain appropriate business records, including a record of each receipt, disbursement, and collection on or disposition of an assigned asset;

(4) Pay administrative expenses of the assignment estate, to the extent the assignment estate has sufficient unencumbered assets;

(5) Establish a method that is reasonably designed to permit a creditor to submit a proof of claim;

(6) Establish a single date by which creditors whose claims are not otherwise allowed without timely proofs of claim under this part must submit proofs of claim, which must be not less than 90 and not more than 210 days after the effective date of the assignment agreement;

(7) Unless a claim would receive minimal or no distribution without regard to its validity or asserted priority, examine the validity and priority of claims against the assignment estate and, if necessary, consult with the assignor’s representative designated under Section 7-9A-908(b)(4), if any;

(8) At least every six months, provide to each creditor a summary of the assets, liabilities, and expenses of the assignment estate, and a status report that provides in summary form actions taken to liquidate assets and plans of distribution;

(9) Comply with all requirements of the Internal Revenue Service and state and local taxing authorities;

(10) Send a notification to each creditor of the assignee’s compensation and any change in the method of determining the assignee’s compensation from the method provided in the assignment agreement;

(11) Send a final accounting under Section 7-9A-919(a); and

(12) Comply with the other requirements imposed on the assignee under this part.