23-744 - Arizona Statutes

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. 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.