Assignment for Benefit of Creditors
Unless otherwise expressly provided, trust law governs assignments for the benefit of creditors. The assignee is considered a trustee and his or her duties and responsibilities to the debtor's creditors are the same as a trustee's to the beneficiaries of a trust. The document that embodies the terms of the assignment authorizes the assignee to liquidate the debtor's property in satisfaction of the creditors' claims against the debtor as quickly as possible. Under COMMON
LAW, this was the assignee's chief function. Even if the assignment instrument does not expressly empower an assignee to sell the property, the assignee still has the power to do so in order to pay the creditors.
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