Arizona Laws 23-744. Priority of claim for contributions due upon insolvency proceedings
A. In event of a distribution of an employer’s assets pursuant to court order, including receivership, assignment for benefit of creditors, adjudicated insolvency, composition or similar proceeding, contributions then or thereafter due shall be paid in full prior to all other claims except taxes and claims for wages of not more than two hundred fifty dollars to each claimant earned within six months prior to commencement of the proceeding. The existence of a condition of insolvency, or the institution of a judicial proceeding for dissolution or distribution of assets, shall cause the priority to attach without action on behalf of the commission.
Terms Used In Arizona Laws 23-744
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
B. In event of an employer’s adjudication in bankruptcy, judicially confirmed extension proposal or composition under the national bankruptcy act, contributions then or thereafter due shall be entitled to such priority as is provided in that act for taxes due a state or the United States.