§ 28-43-16 - Priority of contributions in bankruptcy or judicial distribution of assets.
SECTION 28-43-16
§ 28-43-16 Priority of contributions inbankruptcy or judicial distribution of assets. – In the event of any distribution of an employer's assets pursuant to an orderof any court under the laws of this state, including any receivership,assignment for benefit of creditors, adjudicated insolvency, composition, orsimilar proceeding, contribution payments then or subsequently due shall havethe same priority given to wage claims of not more than one hundred dollars($100) to each claimant, earned within six (6) months of the commencement ofthe proceeding. In the event of an employer's adjudication in bankruptcy,judicially confirmed extension proposal, or composition under the federalBankruptcy Act, 11 U.S.C. § 101 et seq., contributions then orsubsequently due shall be entitled to the priority as is provided in 11 U.S.C.§ 507.