6-118. Assignee removal; successor assignee.
336 words·~2 min read·
/ne/chapter-6/6-118A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)The assignor or a creditor may request a court of competent jurisdiction in this state to remove the assignee, if the assignor or creditor has a reasonable belief grounds for removal exist under subsection
(b)of this section.
(b)After a request under subsection
(a)of this section or on the court's initiative in an action pending before the court under section 6-121 , the court may remove an assignee:
(1)for cause, including the assignee's fraud, dishonesty, incompetence, gross mismanagement, or failure to comply with the Uniform Assignment for Benefit of Creditors Act; or
(2)if removal of the assignee best serves the interests of the creditors.
(c)After an assignee resigns, or 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 subsection
(a)of section 6-104 or is subject to removal under subsection
(b)of this section. 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 subsection
(a)of section 6-104 or is subject to removal under subsection
(b)of this section.
(d)Subject to section 6-117 , an assignee that resigns, or is removed, dies, or becomes incapacitated, is discharged from the assignee's duties under the Uniform Assignment for Benefit of Creditors Act 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.