Senate Bill 0532
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Florida Senate - 1999 SB 532
By the Committee on Fiscal Policy
301-296A-99
1 A bill to be entitled
2 An act relating to trust funds within the
3 Department of Insurance; abolishing the Home
4 Equity Conversion Mortgage Guaranty Fund and
5 transferring its balance to the Treasurer's
6 Administrative and Investment Trust Fund;
7 re-creating the Treasurer's Administrative and
8 Investment Trust Fund; carrying forward current
9 balances and continuing current sources and
10 uses thereof; amending s. 697.205, F.S., and
11 repealing s. 697.203, F.S., relating to the
12 Home Equity Conversion Mortgage Guaranty Fund;
13 conforming provisions to the transfer of the
14 balance of the trust fund to the Treasurer's
15 Administrative and Investment Trust Fund;
16 providing effective dates.
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18 WHEREAS, the Legislature wishes to transfer the Home
19 Equity Conversion Mortgage Guaranty Fund to the Treasurer's
20 Administrative and Investment Trust Fund, and
21 WHEREAS, the Legislature wishes to extend the life of
22 the Treasurer's Administrative and Investment Trust Fund,
23 which is otherwise scheduled to be terminated pursuant to
24 constitutional mandate, and
25 WHEREAS, the Legislature has reviewed the trust fund
26 before its scheduled termination date and has found that it
27 continues to meet an important public purpose, and
28 WHEREAS, the Legislature finds that the existing public
29 policy concerning the trust fund sets adequate parameters for
30 its use, NOW, THEREFORE,
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Florida Senate - 1999 SB 532
301-296A-99
1 Be It Enacted by the Legislature of the State of Florida:
2
3 Section 1. Effective July 1, 1999, the Home Equity
4 Conversion Mortgage Guaranty Fund within the Department of
5 Insurance, FLAIR number 46-2-369, is abolished and its entire
6 balance is transferred to the Treasurer's Administrative and
7 Investment Trust Fund.
8 Section 2. (1) The Treasurer's Administrative and
9 Investment Trust Fund within the State Treasury, FLAIR number
10 46-2-725, which is to be terminated pursuant to Section 19(f),
11 Article III of the State Constitution on November 4, 2000, is
12 re-created.
13 (2) All current balances of the trust fund are carried
14 forward and all current sources and uses of the trust fund are
15 continued.
16 Section 3. Section 697.205, Florida Statutes, is
17 amended to read:
18 697.205 Recoveries from the trust fund.--
19 (1)(a) Any person is eligible to seek recovery from
20 the Treasurer's Administrative and Investment Trust Home
21 Equity Conversion Mortgage Guaranty Fund if:
22 1. Such person was the mortgagee of a home equity
23 conversion mortgage which was foreclosed upon termination, and
24 the proceeds from the foreclosure sale were insufficient to
25 repay the full loan amount due;
26 2. Such person has caused to be issued a writ of
27 execution upon a decree rendered pursuant to chapter 702, and
28 the officer executing the writ has made a return showing that
29 no real or personal property of the judgment debtor can be
30 found which is liable to be levied upon in satisfaction of the
31 decree or that the amount realized on the sale of the judgment
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Florida Senate - 1999 SB 532
301-296A-99
1 debtor's property pursuant to such execution was insufficient
2 to satisfy the judgment;
3 3. Such person has made all searches and inquiries
4 which are reasonable to ascertain whether the judgment debtor
5 possesses real or personal property or other assets subject to
6 being sold or applied in satisfaction of the judgment, and
7 such person through her or his search has discovered no
8 property or assets or has discovered property and assets and
9 taken all necessary action and proceedings for the application
10 of such property and assets in satisfaction of the judgment
11 but the amounts thereby realized were insufficient to satisfy
12 the judgment;
13 4. Such person has applied any amounts recovered from
14 the judgment debtor, or from any other source, to the
15 deficiency decree; or
16 5. The mortgage on which recovery is sought was
17 insured pursuant to s. 697.204 prior to July 1, 1993.
18 (b) Any person who meets all of the conditions
19 prescribed in subsection (1) may apply to the department for
20 payment to be made to such person from the Treasurer's
21 Administrative and Investment Trust Home Equity Conversion
22 Mortgage Guaranty Fund in an amount equal to the unsatisfied
23 portion of such person's deficiency decree. In no event shall
24 Such amount may not exceed the difference between the amount
25 of the proceeds from a foreclosure sale and the loan amount
26 due, including principal and interest.
27 (c) Upon receipt by the mortgagee of the payment from
28 the Treasurer's Administrative and Investment Trust Home
29 Equity Conversion Mortgage Guaranty Fund, the mortgagee shall
30 assign to the department any additional right, title, and
31 interest in the judgment, to the extent of such payment.
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Florida Senate - 1999 SB 532
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1 (2)
2 (a) If In the event that a search is made by the
3 mortgagee to determine all of the debtor's real and personal
4 property which may be applied towards payment of the debt and
5 it is determined that foreclosure of the home equity
6 conversion mortgage would not result in recovering any
7 significant additional assets of the debtor which may be used
8 to satisfy the mortgage, the mortgagee may still be able to
9 recover from the fund without having to foreclose, provided
10 that such mortgage was insured pursuant to s. 697.204 prior to
11 July 1, 1993.
12 1. Such recovery shall be provided for by rule adopted
13 under promulgated pursuant to s. 697.203; shall be conditioned
14 on the mortgagee acquiring the mortgaged property by deed; and
15 shall be based on a reasonable appraised value of the
16 property. The rules adopted promulgated for such recovery
17 shall include provisions for requiring the mortgagee to
18 determine the total assets of the debtor; provisions for
19 determining whether foreclosure would result in recovering any
20 additional assets of the debtor which may be used to satisfy
21 the mortgage; and provisions for determining what constitutes
22 a reasonable appraised value of the property.
23 2. The maximum recovery to be allowed by this section
24 shall be the difference between the loan amount due, including
25 principal and interest, and the appraised value of the
26 property.
27 (b) Any person who meets all of the conditions set by
28 rule for recovery under this subsection may apply to the
29 department for payment to be made to such person from the
30 Treasurer's Administrative and Investment Trust Home Equity
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Florida Senate - 1999 SB 532
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1 Conversion Mortgage Guaranty Fund in an amount equal to the
2 maximum recovery as provided in this section herein.
3 Section 4. Section 697.203, Florida Statutes, is
4 repealed.
5 Section 5. This act shall take effect July 1, 1999,
6 except that section 2 shall take effect November 4, 2000.
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9 SENATE SUMMARY
10 Abolishes the Home Equity Conversion Mortgage Guaranty
Fund within the Department of Insurance and transfers its
11 balance to the Treasurer's Administrative and Investment
Trust Fund. Re-creates the Treasurer's Administrative and
12 Investment Trust Fund.
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