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Alabama · Through Act 2026-611

Ala. Code § 7-9A-918: Assignee Removal; Successor Assignee.

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Where this section sits in the code
  1. Title 7 Commercial Code.
  2. Article 9A Secured Transactions.
  3. Part 9 The Uniform Assignment for Benefit of Creditors Act.

(a) The assignor or a creditor may request the circuit court to remove the assignee if the assignor or creditor has a reasonable belief grounds for removal exist under subsection (b).

(b) After a request under subsection (a) or on the court’s initiative in an action pending before the court under Section 7-9A-921, the court may remove an assignee:

(1) For cause, including the assignee’s fraud, dishonesty, incompetence, gross mismanagement, or failure to comply with this part; or

(2) If removal of the assignee best serves the interests of the creditors.

(c) After an assignee resigns, is removed, dies, or becomes incapacitated, a successor assignee provided for in the assignment agreement becomes the assignee unless the successor assignee is not eligible to be an assignee under Section 7-9A-904(a) or is subject to removal under subsection (b). A court shall appoint a successor assignee if:

(1) The assignment agreement does not provide for a successor assignee; or

(2) The successor assignee provided for in the assignment agreement is ineligible to be an assignee under Section 7-9A-904(a) or is subject to removal under subsection (b).

(d) Subject to Section 7-9A-917, an assignee that resigns, is removed, dies, or becomes incapacitated is discharged from the assignee’s duties under this part when the assignee, or a representative of a deceased or incapacitated assignee:

(1) Accounts for and turns over to the successor assignee all assets of the assignment estate; and

(2) Submits to creditors a report summarizing the receipts and disbursements made during the service of the assignee.

(e) Subject to an applicable privilege, a court may order an attorney, accountant, or other person that has information in a record relating to the assignment estate or the assignor’s financial affairs to turn over or disclose the record to the successor assignee.

Collected 2026-10-10T05:41:29Z. Source file · JSON

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