Delaware has become the sixth state to adopt a version of the Uniform Assignment for Benefit of Creditors Act (Uniform Act). After approximately a decade of increased ABC activity under the antiquated former Delaware ABC law, the statute and process for ABCs has been revised pursuant to Delaware Senate Bill 267, which became effective when it was signed into law on June 10, 2026.1 Key changes to the ABC process and modifications to the uniform ABC act include flexibility for out-of-court ABC actions and elimination of bond and appraisal requirements. This GT Update discusses the procedure contemplated by Delaware’s adoption of the Uniform Act (Delaware ABC Act), changes from a practical perspective, and certain related considerations.2
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1 S.B. 267 (2026), adopting 10 Del. C. §§ 7301A-7324A and repealing §§7381-7387. As of the date of this GT Update, the Uniform Act has previously been enacted in Alabama, Arizona, Nebraska, Iowa, and Utah and introduced in Colorado, Oklahoma, and West Virginia.
2 Unless otherwise stated, references to “Sections” are to sections of the Delaware ABC Act.