44-1031. Effect of assignment for the benefit
of creditors; acknowledgment and recording; invalidity of
assignments not made in accordance with this article
A. Every assignment made by an insolvent debtor, or in contemplation of insolvency,
for the benefit of his creditors, shall provide, except as otherwise provided in this
article, for a distribution of all his real and personal property other than that which
is by law exempt from execution, among all his creditors in proportion to their
respective claims. However the assignment is made or expressed, it shall have such
effect and shall be construed to pass all such property, whether or not specified
therein.
B. Every assignment for the benefit of creditors shall be acknowledged and recorded
in the manner provided by law for conveyances of real or other property.
C. Assignments for the benefit of creditors under the common law are declared
contrary to the public policy of the state and are abolished, and all assignments for the
benefit of creditors are void and of no force and effect unless made in accordance with
the provisions of this article.
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