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The Florida Senate

2005 Florida Statutes

Section 727.114, Florida Statutes 2005

727.114  Priority of claims.--Allowed claims shall receive distribution under this chapter in the following order of priority and, with the exception of subsection (1), on a pro rata basis:

(1)  Creditors with liens on assets of the estate, which liens are duly perfected pursuant to applicable law, shall receive the proceeds from the disposition of their collateral, less the reasonable, necessary expenses of preserving or disposing of such collateral to the extent of any benefit to such creditors. If and to the extent that such proceeds are less than the amount of a creditor's claim or a creditor's lien is avoided pursuant to s. 727.109(6)(c), such a creditor shall be deemed to be an unsecured creditor pursuant to subsection (6) of this section.

(2)  Expenses incurred during the administration of the estate, other than those expenses allowable under subsection (1), including allowed fees and reimbursements of all expenses of the assignee and professional persons employed by the assignee pursuant to s. 727.108(6).

(3)  Unsecured claims of governmental units for taxes which accrued prior to the filing date.

(4)  Claims for wages, salaries, or commissions, including vacation, severance, and sick leave pay, or contributions to an employee benefit plan earned by the individual within 90 days of the filing date or the cessation of the assignor's business, whichever occurs first, but only to the extent of $2,000.

(5)  Allowed unsecured claims, to the extent of $900 for each individual, arising from the deposit with the assignor before the filing date of money in connection with the purchase, lease, or rental of property or the purchase of services for personal, family, or household use by such individuals that were not delivered or provided.

(6)  Unsecured claims.

If all of the above classes have been paid in full, any residue shall be paid to the assignor.

History.--s. 14, ch. 87-174.