CODING: Words stricken are deletions; words underlined are additions.
Senate Bill 0602
    Florida Senate - 1998                                   SB 602

    By Senators Bronson and Klein





    18-580-98                                               See HB

  1                      A bill to be entitled

  2         An act relating to bulk transfers; creating s.

  3         726.202, F.S.; specifying certain bulk

  4         transfers as fraudulent under certain

  5         circumstances; providing criteria; providing

  6         requirements; specifying liability; providing

  7         an effective date.

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  9  Be It Enacted by the Legislature of the State of Florida:

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11         Section 1.  Section 726.202, Florida Statutes, is

12  created to read:

13         726.202  Bulk transfers; notice to unsecured

14  creditors.--For purposes of this section, the terms

15  "transfer," "transferor," and "transferee" include the terms

16  "sale," "seller," and "buyer," respectively. Any transfer in

17  bulk of a major part of the supplies, inventory, merchandise,

18  or other materials held by a transferor, not in the ordinary

19  course of the transferor's business, is fraudulent if the

20  transferee fails to secure from the transferor a list, under

21  oath, of the transferor's unsecured creditors and fails to

22  provide actual notice to such creditors of the proposed

23  transfer not less than 15 days prior to the consummation of

24  the transfer.  Any unsecured creditor of the transferor which

25  provides notice to the transferee of the creditor's unsecured

26  claim within 15 days before the consummation of the transfer

27  shall be treated as a creditor which holds a security interest

28  in the supplies, inventory, merchandise, or other materials

29  subject to the transfer.  A transferee's failure to secure a

30  list of the transferor's unsecured creditors and to notify

31  such creditors as required in this section obligates the

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                                   SB 602
    18-580-98                                               See HB




  1  transferee to pay the claims of the transferor's unsecured

  2  creditors to the same extent the transferor is obligated to

  3  pay such claims.  Nothing in this section shall be construed

  4  to relieve the transferor of any obligations to any unsecured

  5  creditor of the transferor.

  6         Section 2.  This act shall take effect October 1 of the

  7  year in which enacted.

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  9            *****************************************

10                          HOUSE SUMMARY

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      Provides that a bulk transfer of supplies, inventory,
12    merchandise, or other materials is fraudulent if the
      transferee does not obtain a list of the transferor's
13    unsecured creditors and notifies those creditors of the
      transfer before it occurs. See bill for details.
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