Senate Bill 2190

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



    Florida Senate - 2000                                  SB 2190

    By Senator Saunders





    25-1699-00                                         See HB 1569

  1                      A bill to be entitled

  2         An act relating to the merger or conversion of

  3         business entities; amending ss. 607.11101,

  4         608.4383, 620.204, 620.8906, F.S.; deleting

  5         requirement that a deed be recorded in order to

  6         transfer title to real property incident to

  7         merger; amending s. 620.8904, F.S.; deleting

  8         requirement that a deed be recorded in order to

  9         transfer title to real property incident to

10         conversion of a partnership or a limited

11         partnership; creating s. 694.16, F.S., relating

12         to conveyances incident to the merger or

13         conversion of a business entity; providing a

14         directive to the Division of Statutory

15         Revision; providing an effective date.

16

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

18

19         Section 1.  Subsection (2) of section 607.11101,

20  Florida Statutes, is amended to read:

21         607.11101  Effect of merger of domestic corporation and

22  other business entity.--When a merger becomes effective:

23         (2)  The title to all real estate and other property,

24  other than real property or any interest therein, owned by

25  each domestic corporation and other business entity that is a

26  party to the merger is vested in the surviving entity without

27  reversion or impairment. Title to real property or any

28  interest therein shall be conveyed by the recordation of a

29  deed with payment of applicable taxes thereon.

30         Section 2.  Subsection (2) of section 608.4383, Florida

31  Statutes, is amended to read:

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






    Florida Senate - 2000                                  SB 2190
    25-1699-00                                         See HB 1569




  1         608.4383  Effect of merger.--When a merger becomes

  2  effective:

  3         (2)  The title to all real estate and other property,

  4  other than real property or any interest therein, owned by

  5  each domestic limited liability company corporation and other

  6  business entity that is a party to the merger is vested in the

  7  surviving entity without reversion or impairment. Title to

  8  real property or any interest therein shall be conveyed by the

  9  recordation of a deed with payment of applicable taxes

10  thereon.

11         Section 3.  Paragraph (b) of subsection (1) of section

12  620.204, Florida Statutes, is amended to read:

13         620.204  Effect of merger.--

14         (1)  When a merger becomes effective:

15         (b)  The title to all real estate and other property,

16  other than real property or any interest therein, owned by

17  each domestic limited partnership corporation and other

18  business entity that is a party to the merger is vested in the

19  surviving entity without reversion or impairment. Title to

20  real property or any interest therein shall be conveyed by the

21  recordation of a deed with payment of applicable taxes

22  thereon.

23         Section 4.  Subsection (2) of section 620.8904, Florida

24  Statutes, is amended to read:

25         620.8904  Effect of conversion; entity unchanged.--

26         (2)  When a conversion takes effect:

27         (a)  Title to all real estate and other personal

28  property owned by the converting partnership or limited

29  partnership is remains vested in the converted entity without

30  reversion or impairment. Title to all real property owned by

31

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






    Florida Senate - 2000                                  SB 2190
    25-1699-00                                         See HB 1569




  1  the converting partnership or limited partnership shall be

  2  transferred by deed to the converted entity; and

  3         (b)  All liabilities and obligations of the converting

  4  partnership or limited partnership continue as liabilities and

  5  obligations of the converted entity.

  6         Section 5.  Subsection (1) of section 620.8906, Florida

  7  Statutes, is amended to read:

  8         620.8906  Effect of merger.--

  9         (1)  When a merger takes effect:

10         (a)  The separate existence of every partnership or

11  limited partnership which is a party to the merger, other than

12  the surviving entity, ceases;

13         (b)  Title to all real estate and other personal

14  property, or any interest therein, owned by each of the

15  domestic merged partnerships or limited partnerships vests in

16  the surviving entity without reversion or impairment.  Title

17  to all real property owned by each of the merged partnerships

18  or limited partnerships shall be transferred by deed to the

19  surviving entity;

20         (c)  All liabilities and obligations of each

21  partnership or limited partnership which is a party to the

22  merger become the liabilities and obligations of the surviving

23  entity;

24         (d)  A claim existing or action or proceeding pending

25  by or against a partnership or limited partnership which is a

26  party to the merger may be continued as if the merger had not

27  occurred, or the surviving entity may be substituted as a

28  party to the action or proceeding;

29         (e)  Neither the rights of creditors of a converting

30  partnership or limited partnership nor any liens upon the

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






    Florida Senate - 2000                                  SB 2190
    25-1699-00                                         See HB 1569




  1  property of any party to the merger are impaired by such

  2  merger; and

  3         (f)  Each partner of a party to the merger is entitled

  4  only to the rights provided in the plan of merger.

  5         Section 6.  Section 694.16, Florida Statutes, is

  6  created to read:

  7         694.16  Conveyances by merger or conversion of business

  8  entities.--As to any merger or conversion of business entities

  9  prior to the effective date of this act, the title to all real

10  estate, or any interest therein, owned by a business entity

11  that was a party to a merger or a conversion is vested in the

12  surviving entity without reversion or impairment,

13  notwithstanding the requirement of a deed which was previously

14  required by s. 607.11101, s. 608.4383, s. 620.204, s.

15  620.8904, or s. 620.8906.

16         Section 7.  In the next addition of the official

17  Florida Statutes, the Division of Statutory Revision is

18  directed to replace the phrase "the effective date of this

19  act" in section 694.16, Florida Statutes, with the date on

20  which this act takes effect.

21         Section 8.  This act shall take effect upon becoming a

22  law.

23

24            *****************************************

25                       LEGISLATIVE SUMMARY

26
      Revises various provisions of state law governing the
27    merger or conversion of business entities to delete the
      requirement that a deed be recorded in order to transfer
28    title to real property incident to merger. Provides for
      the vesting of title to certain property with respect to
29    conveyances prior to the merger or conversion of a
      business entity. (See bill for details.)
30

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