HB 0427

CS

CHAMBER ACTION

1	The Justice Appropriations Committee recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to procedures for the satisfaction of
7	debts; amending s. 55.141, F.S.; revising provisions
8	relating to satisfaction of judgments and decrees;
9	eliminating the authority of judges to act under these
10	provisions when there is no clerk of court; revising
11	requirements of the clerk when accepting payment for
12	satisfaction of a judgment and executing and recording a
13	satisfaction of judgment; providing a sample form to be
14	used by a clerk when recording a satisfaction of judgment;
15	revising provisions relating to notification of
16	satisfaction of judgment to a judgment holder; amending s.
17	55.202, F.S.; revising procedures for acquiring a judgment
18	lien; authorizing the court to file a judgment lien
19	certificate before a judgment becomes final under certain
20	circumstances; providing that an improperly filed
21	certificate is of no effect; amending s. 55.204, F.S.;
22	revising provisions relating to the continuation of
23	judgment liens; revising provisions requiring the
24	Department of State to maintain certain files and
25	information; amending s. 55.205, F.S.; deleting a
26	provision authorizing certain creditors to bring certain
27	actions against the property of a debtor; amending ss.
28	55.602, 55.603, 55.604, 55.605, and 55.606, F.S.; revising
29	provisions relating to foreign judgments to apply only to
30	out-of-country foreign judgments; amending s. 56.21, F.S.;
31	revising requirements for notices of a levy and execution
32	sale; amending s. 56.27, F.S.; clarifying provisions
33	relating to payment of money received under execution;
34	amending s. 56.29, F.S.; revising requirements regarding
35	supplementary proceedings for unsatisfied judgments and
36	judgment liens; amending s. 77.03, F.S.; deleting the
37	provision that a garnishing creditor must believe that
38	execution would be unavailing; amending s. 77.04, F.S.;
39	specifying a time period for a garnishee to serve an
40	answer to a writ; amending s. 77.041, F.S.; increasing the
41	time period during which a garnishing creditor may object
42	to the debtor's claim of exemption and request a hearing;
43	amending s. 77.07, F.S.; providing for automatic
44	dissolution of a writ and discharge of a garnishee of
45	liability under certain circumstances; granting a
46	plaintiff the right to extend a writ for a certain time
47	period; providing procedures; amending s. 222.01, F.S.;
48	revising provisions relating to the designation of
49	homestead property by the owner prior to levy to include
50	foreign judgments; amending s. 319.27, F.S.; correcting a
51	cross reference; amending s. 679.1021, F.S.; redefining
52	the term "lien creditor"; amending s. 701.02, F.S.;
53	providing that certain chapters of the Uniform Commercial
54	Code govern the attachment and perfection of a security
55	interest in a mortgage upon real property and in a
56	promissory note or other right to payment or performance
57	secured by that mortgage; providing that the assignment of
58	such a mortgage need not be recorded under s. 701.02,
59	F.S., in order for a security interest in the mortgage to
60	attach or be perfected under the Uniform Commercial Code;
61	providing that a creditor or subsequent purchaser of real
62	property or of any interest therein may rely on a full or
63	partial release, discharge, consent, joinder,
64	subordination, satisfaction, or assignment of a mortgage
65	upon the property which was made by the mortgagee of
66	record, without regard to the filing of certain Uniform
67	Commercial Code financing statements; providing that the
68	filing of such a financing statement does not constitute
69	notice for the purposes of s. 701.02, F.S.; defining the
70	term "mortgagee of record"; providing effective dates.
71
72	Be It Enacted by the Legislature of the State of Florida:
73
74	Section 1.  Section 55.141, Florida Statutes, is amended to
75	read:
76	55.141  Satisfaction of judgments and decrees; duties of
77	clerk and judge.--
78	(1)  All judgments and decrees for the payment of money
79	rendered in the courts of this state and which have become
80	final, may be satisfied at any time prior to the actual levy of
81	execution issued thereon by payment of the full amount of such
82	judgment or decree, with interest thereon, plus the costs of the
83	issuance, if any, of execution thereon into the registry of the
84	court where rendered.
85	(2)  Upon such payment, the clerk, or the judge if there is
86	no clerk, shall execute issue his or her receipt therefor and
87	shall record in the official records a satisfaction of judgment,
88	provided by the judgment holder, upon payment of the recording
89	charge prescribed in s. 28.24(12) plus the necessary costs of
90	mailing to the clerk or judge. Upon payment of the amount
91	required in subsection (1) and the recording charge required by
92	this subsection and execution and recordation of the
93	satisfaction by the clerk, any lien created by the judgment is
94	satisfied and discharged. The clerk or judge shall formally
95	notify the owner of record of such judgment or decree, if such
96	person and his or her address are known to the clerk or judge
97	receiving such payment, and, upon request therefor, shall pay
98	over to the person entitled, or to his or her order, the full
99	amount of the payment so received, less his or her service
100	charge for providing a receipt upon the court issuing a writ of
101	execution on such judgment or decree, if any has been issued,
102	and less his or her service charge for receiving into and paying
103	out of the registry of the court such payment, together with the
104	service charge of the clerk for receiving into and paying such
105	money out of the registry of the court.
106	(3)  The satisfaction of judgment executed by the clerk
107	must be substantially in the following form:
108
109	Satisfaction of Judgment by Clerk
110
111	The undersigned Clerk acknowledges on this      day of (month)
112	(year) receipt from (identity of party making payment) of $
113	(total amount received), comprised of $     face amount of the
114	judgment; $     interest accruing on the judgment through the
115	date of payment; $     costs of issuance of any execution; and $
116	for recording.
117
118	Pursuant to section 55.141, Florida Statutes, said sum is paid
119	to satisfy the lien and to discharge that certain final judgment
120	in favor of (name of judgment holder), whose last known address,
121	if known, is (address if shown on face of judgment or in
122	recorded affidavit pursuant to section 55.10(1), Florida
123	Statutes,) against (name of judgment debtor) recorded in
124	Official Records Volume/Book     , page     , of the public
125	records of______
126	County, Florida.
127
128	Upon the execution of this satisfaction, said judgment is
129	satisfied and discharged.
130
131	If an address for the judgment holder was provided under section
132	55.10(1), Florida Statutes, I certify that a copy of this notice
133	has been sent to the judgment holder at said address by
134	certified mail with return receipt requested or by registered
135	mail if the notice is to be sent outside the continental United
136	States.
137
138	Clerk of Court
139	(4)  If an address for the judgment holder was provided
140	under s. 55.10(1), the clerk shall formally send a copy of the
141	satisfaction to the judgment holder at that address by certified
142	mail with return receipt or by registered mail if the notice is
143	to be sent outside the continental United States. If an address
144	is not provided under s. 55.10(1) or if delivery cannot be
145	effected to such address, the clerk may, but is not obligated
146	to, make reasonable attempts to locate the judgment holder. The
147	discharge of the lien by the issuance of the satisfaction is not
148	dependent upon the delivery of notice by the clerk.
149	(5)  Upon application of the judgment holder, the clerk
150	shall pay over to the judgment holder the full amount of the
151	payment received, less the clerk's fees for issuing execution on
152	such judgment, if any has been issued; less the clerk's fees for
153	receiving into and paying out of the registry of the court such
154	payment; less the clerk's fees for recording the satisfaction of
155	judgment; and, if the clerk incurred expenses in locating the
156	judgment holder, less the reasonable expenses so incurred.
157	(3)  Full payment of judgments and decrees as in the
158	preceding subsections of this section provided shall constitute
159	full payment and satisfaction thereof and any lien created by
160	such judgment or decree shall thereupon be satisfied and
161	discharged.
162	Section 2.  Subsections (2) and (3) of section 55.202,
163	Florida Statutes, are amended to read:
164	55.202  Judgments, orders, and decrees; lien on personal
165	property.--
166	(2)  A judgment lien may be acquired on a judgment debtor's
167	interest in all personal property in this state subject to
168	execution under s. 56.061, other than fixtures, money,
169	negotiable instruments, and mortgages.
170	(a)  A judgment lien is acquired by filing a judgment lien
171	certificate in accordance with s. 55.203 with the Department of
172	State after the judgment has become final and if the time to
173	move for rehearing has lapsed, no motion for rehearing is
174	pending, and no stay of the judgment or its enforcement is then
175	in effect. A court may authorize, for cause shown, the filing of
176	a judgment lien certificate before a judgment has become final
177	when the court has authorized the issuance of a writ of
178	execution in the same matter. A judgment lien certificate not
179	filed in compliance with this subsection is permanently void and
180	of no effect.
181	(b)  For any lien, warrant, assessment, or judgment
182	collected by the Department of Revenue, a judgment lien may be
183	acquired by filing the judgment lien certificate information or
184	warrant with the Department of State in accordance with
185	subsection (5).
186	(c)  Except as provided in s. 55.208, the effective date of
187	a judgment lien is the date, including the time of day, of
188	filing. Although no lien attaches to property, and a creditor
189	does not become a lien creditor as to liens under chapter 679,
190	until the debtor acquires an interest in the property, priority
191	among competing judgment liens is determined in order of filing
192	date and time.
193	(d)  Except as provided in s. 55.204(3), a judgment
194	creditor may file only one effective judgment lien certificate
195	based upon a particular judgment.
196	(3)  Except as otherwise provided in s. 55.208, the
197	priority of a judgment lien acquired in accordance with this
198	section or s. 55.204(3) is established at the date and time the
199	judgment lien certificate is filed.
200	Section 3.  Subsections (4) and (6) of section 55.204,
201	Florida Statutes, are amended to read:
202	55.204  Duration and continuation of judgment lien;
203	destruction of records.--
204	(4)  A judgment lien continues only as to itemized property
205	for an additional 90 days after lapse of the lien. Such judgment
206	lien will continue only if:
207	(a)  The property had been itemized and its location
208	described with sufficient particularity in the instructions for
209	levy to permit the sheriff to act;
210	(b)  The instructions for the levy had been delivered to
211	the sheriff prior to the date of lapse of the lien to permit the
212	sheriff to act; and
213	(c)  The property was located in the county in which the
214	sheriff has jurisdiction at the time of delivery of the
215	instruction for levy. Subsequent removal of the property does
216	not defeat the lien. A court may order continuation of the lien
217	beyond the 90-day period on a showing that extraordinary
218	circumstances have prevented levy.
219	(6)  If no second judgment lien is filed, the Department of
220	State shall maintain each judgment lien file and all information
221	contained therein for a minimum of 1 year after the judgment
222	lien lapses in accordance with this section. If a second
223	judgment lien is filed, the department shall maintain both files
224	and all information contained in such files for a minimum of 1
225	year after the second judgment lien lapses.
226	Section 4.  Subsection (1) of section 55.205, Florida
227	Statutes, is amended to read:
228	55.205  Effect of judgment lien.--
229	(1)  A valid judgment lien gives the judgment creditor the
230	right to proceed against the property of the debtor through writ
231	of execution, garnishment, or other judicial process. A judgment
232	creditor who has not acquired a judgment lien as provided in s.
233	55.202 or whose lien has lapsed may nevertheless proceed against
234	the judgment debtor's property through any appropriate other
235	judicial process. Such judgment creditor proceeding by writ of
236	execution acquires a lien as of the time of levy and only on the
237	property levied upon. Except as provided in s. 55.208, such
238	judgment creditor takes subject to the claims and interest of
239	priority judgment creditors.
240	Section 5.  Subsection (2) of section 55.602, Florida
241	Statutes, is amended to read:
242	55.602  Definitions.--As used in this act, the term:
243	(2)  "Out-of-country foreign judgment" means any judgment
244	of a foreign state granting or denying recovery of a sum of
245	money, other than a judgment for taxes, a fine, or other
246	penalty.
247	Section 6.  Section 55.603, Florida Statutes, is amended to
248	read:
249	55.603  Applicability.--This act applies to any out-of-
250	out-of-country foreign judgment that is final and conclusive and
251	enforceable where rendered, even though an appeal therefrom is
252	pending or is subject to appeal.
253	Section 7.  Section 55.604, Florida Statutes, is amended to
254	read:
255	55.604  Recognition and enforcement.--Except as provided in
256	s. 55.605, an out-of-country a foreign judgment meeting the
257	requirements of s. 55.603 is conclusive between the parties to
258	the extent that it grants or denies recovery of a sum of money.
259	Procedures for recognition and enforceability of an out-of-
260	country a foreign judgment shall be as follows:
261	(1)  The out-of-country foreign judgment shall be filed
262	with the clerk of the court and recorded in the public records
263	in the county or counties where enforcement is sought.
264	(a)  At the time of the recording of an out-of-country a
265	foreign judgment, the judgment creditor shall make and record
266	with the clerk of the circuit court an affidavit setting forth
267	the name, social security number, if known, and last known post-
268	office address of the judgment debtor and of the judgment
269	creditor.
270	(b)  Promptly upon the recording of the out-of-country
271	foreign judgment and the affidavit, the clerk shall mail notice
272	of the recording of the out-of-country foreign judgment, by
273	registered mail with return receipt requested, to the judgment
274	debtor at the address given in the affidavit and shall make a
275	note of the mailing in the docket. The notice shall include the
276	name and address of the judgment creditor and of the judgment
277	creditor's attorney, if any, in this state. In addition, the
278	judgment creditor may mail a notice of the recording of the
279	judgment to the judgment debtor and may record proof of mailing
280	with the clerk. The failure of the clerk to mail notice of
281	recording will not affect the enforcement proceedings if proof
282	of mailing by the judgment creditor has been recorded.
283	(2)  The judgment debtor shall have 30 days after service
284	of the notice to file a notice of objection with the clerk of
285	the court specifying the grounds for nonrecognition or
286	nonenforceability under this act.
287	(3)  Upon the application of any party, and after proper
288	notice, the circuit court shall have jurisdiction to conduct a
289	hearing, determine the issues, and enter an appropriate order
290	granting or denying recognition in accordance with the terms of
291	this act.
292	(4)  If the judgment debtor fails to file a notice of
293	objection within the required time, the clerk of the court shall
294	record a certificate stating that no objection has been filed.
295	(5)  Upon entry of an order recognizing the out-of-country
296	foreign judgment, or upon recording of the clerk's certificate
297	set forth above, the out-of-country foreign judgment shall be
298	enforced in the same manner as the judgment of a court of this
299	state.
300	(6)  Once an order recognizing the out-of-country foreign
301	judgment has been entered by a court of this state, the order
302	and a copy of the judgment may be recorded in any other county
303	of this state without further notice or proceedings, and shall
304	be enforceable in the same manner as the judgment of a court of
305	this state.
306	(7)  A lien on real estate in any county shall be created
307	only when there has been recorded in the official records of the
308	county (a) a certified copy of the judgment, and (b) a copy of
309	the clerk's certificate or the order recognizing the out-of-
310	country foreign judgment. The priority of such lien will be
311	established as of the time the latter of the two recordings has
312	occurred. Such lien may be partially released or satisfied by
313	the person designated pursuant to paragraph (1).
314	(8)  A judgment lien on personal property is acquired only
315	when a judgment lien certificate is filed in accordance with s.
316	55.203 with the Department of State.
317	Section 8.  Section 55.605, Florida Statutes, is amended to
318	read:
319	55.605  Grounds for nonrecognition.--
320	(1)  An out-of-country A foreign judgment is not conclusive
321	if:
322	(a)  The judgment was rendered under a system which does
323	not provide impartial tribunals or procedures compatible with
324	the requirements of due process of law.
325	(b)  The foreign court did not have personal jurisdiction
326	over the defendant.
327	(c)  The foreign court did not have jurisdiction over the
328	subject matter.
329	(2)  An out-of-country A foreign judgment need not be
330	recognized if:
331	(a)  The defendant in the proceedings in the foreign court
332	did not receive notice of the proceedings in sufficient time to
333	enable him or her to defend.
334	(b)  The judgment was obtained by fraud.
335	(c)  The cause of action or claim for relief on which the
336	judgment is based is repugnant to the public policy of this
337	state.
338	(d)  The judgment conflicts with another final and
339	conclusive order.
340	(e)  The proceeding in the foreign court was contrary to an
341	agreement between the parties under which the dispute in
342	question was to be settled otherwise than by proceedings in that
343	court.
344	(f)  In the case of jurisdiction based only on personal
345	service, the foreign court was a seriously inconvenient forum
346	for the trial of the action.
347	(g)  The foreign jurisdiction where judgment was rendered
348	would not give recognition to a similar judgment rendered in
349	this state.
350	Section 9.  Section 55.606, Florida Statutes, is amended to
351	read:
352	55.606  Personal jurisdiction.--The out-of-country foreign
353	judgment shall not be refused recognition for lack of personal
354	jurisdiction if:
355	(1)  The defendant was served personally in the foreign
356	state;
357	(2)  The defendant voluntarily appeared in the proceedings,
358	other than for the purpose of protecting property seized or
359	threatened with seizure in the proceedings or of contesting the
360	jurisdiction of the court over him or her;
361	(3)  The defendant, prior to the commencement of the
362	proceedings, had agreed to submit to the jurisdiction of the
363	foreign court with respect to the subject matter involved;
364	(4)  The defendant was domiciled in the foreign state when
365	the proceedings were instituted, or, being a body corporate, had
366	its principal place of business, was incorporated, or had
367	otherwise acquired corporate status, in the foreign state;
368	(5)  The defendant had a business office in the foreign
369	state and the proceedings in the foreign court involved a cause
370	of action or a claim for relief arising out of business done by
371	the defendant through that office in the foreign state; or
372	(6)  The defendant operated a motor vehicle or airplane in
373	the foreign state and the proceedings involved a cause of action
374	or claim for relief arising out of such operation.
375	Section 10.  Effective October 1, 2005, section 56.21,
376	Florida Statutes, is amended to read:
377	56.21  Execution sales; notice.--Notice of all sales under
378	execution shall be given by advertisement once each week for 4
379	successive weeks in a newspaper published in the county in which
380	the sale is to take place. The time of such notice may be
381	shortened in the discretion of the court from which the
382	execution issued, upon affidavit that the property to be sold is
383	subject to decay and will not sell for its full value if held
384	until date of sale. On or before the date of the first
385	publication or posting of the notice of sale, a copy of the
386	notice of sale shall be furnished by certified mail to the
387	attorney of record of the judgment debtor, or to the judgment
388	debtor at the judgment debtor's last known address if the
389	judgment debtor does not have an attorney of record. Such copy
390	of the notice of sale shall be mailed even though a default
391	judgment was entered. When levying upon personal property, a
392	notice of such levy and execution sale and a copy of the
393	affidavit required by s. 56.27(4) shall be sent by the sheriff
394	made by the levying creditor to the attorneys attorney of record
395	of all the judgment creditors, creditor or to all the judgment
396	creditors who do not have an attorney of record, creditor who
397	have has acquired a judgment lien as provided in s. 55.202 or s.
398	55.204(3), and whose liens have not lapsed at the time of levy,
399	at the address listed in the judgment lien certificate, or, if
400	amended, in any amendment to the judgment lien certificate, and
401	to all secured creditors who have filed financing statements as
402	provided in part V of chapter 679 s. 679.401 in the name of the
403	judgment debtor reflecting a security interest in property of
404	the kind to be sold at the execution sale at the address listed
405	in the financing statement, or, if amended, in any amendment to
406	the financing statement. Such notice shall be made in the same
407	manner as notice is made to any judgment debtor under this
408	section. When levying upon real property, notice of such levy
409	and execution sale shall be made to the property owner of record
410	in the same manner as notice is made to any judgment debtor
411	pursuant to this section. When selling real or personal
412	property, the sale date shall not be earlier than 30 days after
413	the date of the first advertisement.
414	Section 11.  Subsections (1), (2), and (4) of section
415	56.27, Florida Statutes, are amended to read:
416	56.27  Executions; payment of money collected.--
417	(1)  All money received under executions shall be paid, in
418	the order prescribed, to the following: the sheriff, for costs;
419	the levying creditor in the amount of $500 as liquidated
420	expenses; if the levy is upon real property, the first priority
421	lienholder under s. 55.10; and if the levy is upon personal
422	property, and the first priority lienholder under s. 55.202, s.
423	55.204(3), or s. 55.208(2), as set forth in an affidavit
424	required by subsection (4), or his or her attorney, in
425	satisfaction of the judgment lien, provided that the judgment
426	lien has not lapsed at the time of the levy. The receipt of the
427	attorney shall be a release of the officer paying the money to
428	him or her. When the name of more than one attorney appears in
429	the court file, the money shall be paid to the attorney who
430	originally commenced the action or who made the original defense
431	unless the file shows that another attorney has been
432	substituted.
433	(2)  When property sold under execution brings more than
434	the amount needed to satisfy the provisions of subsection (1),
435	the surplus shall be paid in the order of priority to any
436	judgment lienholders whose judgment liens have not lapsed.
437	Priority of liens on personal property shall be based on the
438	effective date of the judgment lien acquired under s. 55.202, s.
439	55.204(3), or s. 55.208(2), as set forth in an affidavit
440	required under subsection (4). If there is a surplus after all
441	valid judgment liens and execution liens have been satisfied,
442	the surplus must be paid to the defendant.
443	(4)  On or Before the date of the first publication or
444	posting of the notice of sale provided for under s. 56.21, the
445	levying creditor shall deliver to the sheriff file an affidavit
446	setting forth the following as to the judgment debtor:
447	(a)  An attestation that the levying creditor has reviewed
448	the database or judgment lien records established in accordance
449	with ss. 55.201-55.209 and that the information contained in the
450	affidavit based on that review is true and correct;
451	(b)  The information required under s. 55.203(1) and (2)
452	for each judgment lien certificate indexed under the name of the
453	judgment debtor as to each judgment creditor; the file number
454	assigned to the record of the original and, if any, the second
455	judgment lien; and the date of filing for each judgment lien
456	certificate under s. 55.202 or s. 55.204(3); and
457	(c)  A statement that the levying creditor either does not
458	have any other levy in process or, if another levy is in
459	process, the levying creditor believes in good faith that the
460	total value of the property under execution does not exceed the
461	amount of outstanding judgments.
462	Section 12.  Subsection (1) of section 56.29, Florida
463	Statutes, is amended to read:
464	56.29  Proceedings supplementary.--
465	(1)  When any person or entity holds an unsatisfied
466	judgment or judgment lien obtained under chapter 55 execution
467	and has delivered a writ of execution to any sheriff, the
468	judgment holder or judgment lienholder plaintiff in execution
469	may file an affidavit so stating, identifying, if applicable,
470	the issuing court, the case number, and the unsatisfied amount
471	of the judgment or judgment lien, including accrued costs and
472	interest, and stating that the execution is valid and
473	outstanding, and thereupon the judgment holder or judgment
474	lienholder is entitled to these proceedings supplementary to
475	execution.
476	Section 13.  Section 77.03, Florida Statutes, is amended to
477	read:
478	77.03  Issuance of writ after judgment.--After judgment has
479	been obtained against defendant but before the writ of
480	garnishment is issued, the plaintiff, the plaintiff's agent or
481	attorney, shall file a motion (which shall not be verified or
482	negative defendant's exemptions) stating the amount of the
483	judgment and that movant does not believe that defendant has in
484	his or her possession visible property on which a levy can be
485	made sufficient to satisfy the judgment. The motion may be filed
486	and the writ issued either before or after the return of
487	execution.
488	Section 14.  Section 77.04, Florida Statutes, is amended to
489	read:
490	77.04  Writ; form.--The writ shall require the garnishee to
491	serve an answer to it on plaintiff within 20 days after service
492	stating whether he or she is indebted to defendant at the time
493	of the answer, or was indebted at the time of service of the
494	writ, plus sufficient time not to exceed 1 business day for the
495	garnishee to act expeditiously on the writ, or at any time
496	between such times; and in what sum and what tangible or
497	intangible personal property of defendant the garnishee has in
498	his or her possession or control at the time of his or her
499	answer, or had at the time of the service of the writ, or at any
500	time between such times; and whether the garnishee knows of any
501	other person indebted to defendant, or who may have any of the
502	property of defendant in his or her possession or control. The
503	writ shall state the amount named in plaintiff's motion.
504	Section 15.  Subsections (1) and (3) of section 77.041,
505	Florida Statutes, are amended to read:
506	77.041  Notice to individual defendant for claim of
507	exemption from garnishment; procedure for hearing.--
508	(1)  Upon application for a writ of garnishment by a
509	plaintiff, if the defendant is an individual, the clerk of the
510	court shall attach to the writ the following "Notice to
511	Defendant":
512
513	NOTICE TO DEFENDANT OF RIGHT AGAINST
514	GARNISHMENT OF WAGES, MONEY,
515	AND OTHER PROPERTY
516
517	The Writ of Garnishment delivered to you with this Notice
518	means that wages, money, and other property belonging to you
519	have been garnished to pay a court judgment against you.
520	HOWEVER, YOU MAY BE ABLE TO KEEP OR RECOVER YOUR WAGES, MONEY,
521	OR PROPERTY. READ THIS NOTICE CAREFULLY.
522	State and federal laws provide that certain wages, money,
523	and property, even if deposited in a bank, savings and loan, or
524	credit union, may not be taken to pay certain types of court
525	judgments. Such wages, money, and property are exempt from
526	garnishment. The major exemptions are listed below on the form
527	for Claim of Exemption and Request for Hearing. This list does
528	not include all possible exemptions. You should consult a lawyer
529	for specific advice.
530
531	TO KEEP YOUR WAGES, MONEY, AND OTHER PROPERTY FROM
532	BEING GARNISHED, OR TO GET BACK ANYTHING ALREADY
533	TAKEN, YOU MUST COMPLETE A FORM FOR CLAIM OF EXEMPTION
534	AND REQUEST FOR HEARING AS SET FORTH BELOW AND HAVE
535	THE FORM NOTARIZED. YOU MUST FILE THE FORM WITH THE
536	CLERK'S OFFICE WITHIN 20 DAYS AFTER THE DATE YOU
537	RECEIVE THIS NOTICE OR YOU MAY LOSE IMPORTANT RIGHTS.
538	YOU MUST ALSO MAIL OR DELIVER A COPY OF THIS FORM TO
539	THE PLAINTIFF AND THE GARNISHEE AT THE ADDRESSES
540	LISTED ON THE WRIT OF GARNISHMENT.
541
542	If you request a hearing, it will be held as soon as
543	possible after your request is received by the court. The
544	plaintiff must file any objection within 3 2 business days if
545	you hand delivered to the plaintiff a copy of the form for Claim
546	of Exemption and Request for Hearing or, alternatively, 8
547	business 7 days if you mailed a copy of the form for claim and
548	request to the plaintiff. If the plaintiff files an objection to
549	your Claim of Exemption and Request for Hearing, the clerk will
550	notify you and the other parties of the time and date of the
551	hearing. You may attend the hearing with or without an attorney.
552	If the plaintiff fails to file an objection, no hearing is
553	required, the writ of garnishment will be dissolved and your
554	wages, money, or property will be released.
555
556	YOU SHOULD FILE THE FORM FOR CLAIM OF EXEMPTION
557	IMMEDIATELY TO KEEP YOUR WAGES, MONEY, OR PROPERTY
558	FROM BEING APPLIED TO THE COURT JUDGMENT. THE CLERK
559	CANNOT GIVE YOU LEGAL ADVICE. IF YOU NEED LEGAL
560	ASSISTANCE YOU SHOULD SEE A LAWYER. IF YOU CANNOT
561	AFFORD A PRIVATE LAWYER, LEGAL SERVICES MAY BE
562	AVAILABLE. CONTACT YOUR LOCAL BAR ASSOCIATION OR ASK
563	THE CLERK'S OFFICE ABOUT ANY LEGAL SERVICES PROGRAM IN
564	YOUR AREA.
565
566	CLAIM OF EXEMPTION AND
567	REQUEST FOR HEARING
568
569	I claim exemptions from garnishment under the following
570	categories as checked:
571	_____1.  Head of family wages. (You must check a. or b. below.)
572	_____a.  I provide more than one-half of the support for a child
573	or other dependent and have net earnings of $500 or less per
574	week.
575	_____b.  I provide more than one-half of the support for a child
576	or other dependent, have net earnings of more than $500 per
577	week, but have not agreed in writing to have my wages garnished.
578	_____2.  Social Security benefits.
579	_____3.  Supplemental Security Income benefits.
580	_____4.  Public assistance (welfare).
581	_____5.  Workers' Compensation.
582	_____6.  Unemployment Compensation.
583	_____7.  Veterans' benefits.
584	_____8.  Retirement or profit-sharing benefits or pension money.
585	_____9.  Life insurance benefits or cash surrender value of a
586	life insurance policy or proceeds of annuity contract.
587	_____10.  Disability income benefits.
588	_____11.  Prepaid College Trust Fund or Medical Savings Account.
589	_____12.  Other exemptions as provided by law.
590	________________________________(explain)
591
592	I request a hearing to decide the validity of my claim. Notice
593	of the hearing should be given to me at:
594
595	Address:________________________________
596
597	Telephone number:________________________
598
599	The statements made in this request are true to the best of my
600	knowledge and belief.
601
602	________________________________
603	Defendant's signature
604
605	Date________________________________
606
607	STATE OF FLORIDA
608
609	COUNTY OF
610
611	Sworn and subscribed to before me this ________ day of (month
612	and year), by (name of person making statement)
613
614	Notary Public/Deputy Clerk
615
616	Personally Known ________OR Produced Identification____
617
618	Type of Identification Produced____________________
619
620	(3)  Upon the filing by a defendant of a claim of exemption
621	and request for hearing, a hearing will be held as soon as is
622	practicable to determine the validity of the claimed exemptions.
623	If the plaintiff does not file a sworn written statement that
624	contests the defendant's claim of exemption within 3 2 business
625	days after hand delivering the claim and request or,
626	alternatively, 8 7 business days, if the claim and request were
627	served by mail, no hearing is required and the clerk must
628	automatically dissolve the writ and notify the parties of the
629	dissolution by mail.
630	Section 16.  Subsection (5) is added to section 77.07,
631	Florida Statutes, to read:
632	77.07  Dissolution of writ.--
633	(5)  If the plaintiff fails to file a dismissal or motion
634	for final judgment within 6 months after filing the writ of
635	garnishment, the writ shall automatically be dissolved and the
636	garnishee shall be discharged from further liability under the
637	writ. The plaintiff has the right to extend the writ for an
638	additional 6 months by serving the garnishee and the defendant a
639	notice of extension and filing in the underlying proceeding a
640	certification of such service.
641	Section 17.  Subsections (2) and (4) of section 222.01,
642	Florida Statutes, are amended to read:
643	222.01  Designation of homestead by owner before levy.--
644	(2)  When a certified copy of a judgment has been filed in
645	the public records of a county pursuant to chapter 55 s. 55.10,
646	a person who is entitled to the benefit of the provisions of the
647	State Constitution exempting real property as homestead and who
648	has a contract to sell or a commitment from a lender for a
649	mortgage on the homestead may file a notice of homestead in the
650	public records of the county in which the homestead property is
651	located in substantially the following form:
652
653	NOTICE OF HOMESTEAD
654
655	To:  (Name and address of judgment creditor as shown
656	on recorded judgment and name and address of any other
657	person shown in the recorded judgment to receive a
658	copy of the Notice of Homestead).
659
660	You are notified that the undersigned claims as
661	homestead exempt from levy and execution under Section
662	4, Article X of the State Constitution, the following
663	described property:
664
665	(Legal description)
666
667	The undersigned certifies, under oath, that he or she
668	has applied for and received the homestead tax
669	exemption as to the above-described property, that
670	____ is the tax identification parcel number of this
671	property, and that the undersigned has resided on this
672	property continuously and uninterruptedly from (date)
673	to the date of this Notice of Homestead. Further, the
674	undersigned will either convey or mortgage the above-
675	described property pursuant to the following:
676
677	(Describe the contract of sale or loan commitment by
678	date, names of parties, date of anticipated closing,
679	and amount. The name, address, and telephone number of
680	the person conducting the anticipated closing must be
681	set forth.)
682
683	The undersigned also certifies, under oath, that the
684	judgment lien filed by you on (date) and recorded in
685	Official Records Book ____, Page ____, of the Public
686	Records of ________ County, Florida, does not
687	constitute a valid lien on the described property.
688
689	YOU ARE FURTHER NOTIFIED, PURSUANT TO SECTION 222.01
690	ET SEQ., FLORIDA STATUTES, THAT WITHIN 45 DAYS AFTER
691	THE MAILING OF THIS NOTICE YOU MUST FILE AN ACTION IN
692	THE CIRCUIT COURT OF ________ COUNTY, FLORIDA, FOR A
693	DECLARATORY JUDGMENT TO DETERMINE THE CONSTITUTIONAL
694	HOMESTEAD STATUS OF THE SUBJECT PROPERTY OR TO
695	FORECLOSE YOUR JUDGMENT LIEN ON THE PROPERTY AND
696	RECORD A LIS PENDENS IN THE PUBLIC RECORDS OF THE
697	COUNTY WHERE THE HOMESTEAD IS LOCATED. YOUR FAILURE TO
698	SO ACT WILL RESULT IN ANY BUYER OR LENDER, OR HIS OR
699	HER SUCCESSORS AND ASSIGNS, UNDER THE ABOVE-DESCRIBED
700	CONTRACT OF SALE OR LOAN COMMITMENT TO TAKE FREE AND
701	CLEAR OF ANY JUDGMENT LIEN YOU MAY HAVE ON THE
702	PROPERTY.
703
704	This ____ day of ____________, 2____.
705	________________________
706	(Signature of Owner)
707
708	________________________
709	(Printed Name of Owner)
710
711	________________________
712	(Owner's Address)
713
714	Sworn to and subscribed before me by
715	________________________ who is personally
716	known to me or produced
717	________________________ as identification,
718	this ____ day of ____________, 2____
719
720	________________________
721	Notary Public
722
723	(4)  A lien pursuant to chapter 55 s. 55.10 of any lienor
724	upon whom such notice is served, who fails to institute an
725	action for a declaratory judgment to determine the
726	constitutional homestead status of the property described in the
727	notice of homestead or to file an action to foreclose the
728	judgment lien, together with the filing of a lis pendens in the
729	public records of the county in which the homestead is located,
730	within 45 days after service of such notice shall be deemed as
731	not attaching to the property by virtue of its status as
732	homestead property as to the interest of any buyer or lender, or
733	his or her successors or assigns, who takes under the contract
734	of sale or loan commitment described above within 180 days after
735	the filing in the public records of the notice of homestead.
736	This subsection shall not act to prohibit a lien from attaching
737	to the real property described in the notice of homestead at
738	such time as the property loses its homestead status.
739	Section 18.  Subsection (2) and paragraph (b) of subsection
740	(3) of section 319.27, Florida Statutes, are amended to read:
741	319.27  Notice of lien on motor vehicles or mobile homes;
742	notation on certificate; recording of lien.--
743	(2)  No lien for purchase money or as security for a debt
744	in the form of a security agreement, retain title contract,
745	conditional bill of sale, chattel mortgage, or other similar
746	instrument or any other nonpossessory lien, including a lien for
747	child support, upon a motor vehicle or mobile home upon which a
748	Florida certificate of title has been issued shall be
749	enforceable in any of the courts of this state against creditors
750	or subsequent purchasers for a valuable consideration and
751	without notice, unless a sworn notice of such lien has been
752	filed in the department and such lien has been noted upon the
753	certificate of title of the motor vehicle or mobile home. Such
754	notice shall be effective as constructive notice when filed. The
755	No interest of a statutory nonpossessory lienor; the interest of
756	a nonpossessory execution, attachment, or equitable lienor; or
757	the interest of a lien creditor as defined in s. 679.1021(1)(zz)
758	679.301(3), if nonpossessory, shall not be enforceable against
759	creditors or subsequent purchasers for a valuable consideration
760	unless such interest becomes a possessory lien or is noted upon
761	the certificate of title for the subject motor vehicle or mobile
762	home prior to the occurrence of the subsequent transaction.
763	Provided the provisions of this subsection relating to a
764	nonpossessory statutory lienor; a nonpossessory execution,
765	attachment, or equitable lienor; or the interest of a lien
766	creditor as defined in s. 679.1021(1)(zz) 679.301(3) shall not
767	apply to liens validly perfected prior to October 1, 1988. The
768	notice of lien shall provide the following information:
769	(a)  The date of the lien if a security agreement, retain
770	title contract, conditional bill of sale, chattel mortgage, or
771	other similar instrument was executed prior to the filing of the
772	notice of lien;
773	(b)  The name and address of the registered owner;
774	(c)  A description of the motor vehicle or mobile home,
775	showing the make, type, and vehicle identification number; and
776	(d)  The name and address of the lienholder.
777	(3)
778	(b)  As applied to a determination of the respective rights
779	of a secured party under this chapter and a lien creditor as
780	defined by s. 679.1021(1)(zz) 679.301(3), or a nonpossessory
781	statutory lienor, a security interest under this chapter shall
782	be perfected upon the filing of the notice of lien with the
783	department, the county tax collector, or their agents. Provided,
784	however, the date of perfection of a security interest of such
785	secured party shall be the same date as the execution of the
786	security agreement or other similar instrument if the notice of
787	lien is filed in accordance with this subsection within 15 days
788	after the debtor receives possession of the motor vehicle or
789	mobile home and executes such security agreement or other
790	similar instrument. The date of filing of the notice of lien
791	shall be the date of its receipt by the department central
792	office in Tallahassee, if first filed there, or otherwise by the
793	office of the county tax collector, or their agents.
794	Section 19.  Paragraph (zz) of subsection (1) of section
795	679.1021, Florida Statutes, is amended to read:
796	679.1021  Definitions and index of definitions.--
797	(1)  In this chapter, the term:
798	(zz)  "Lien creditor" means:
799	1.  A creditor that has acquired a lien on the property
800	involved by attachment, levy, judgment lien certificate, or the
801	like;
802	2.  An assignee for benefit of creditors from the time of
803	assignment;
804	3.  A trustee in bankruptcy from the date of the filing of
805	the petition; or
806	4.  A receiver in equity from the time of appointment.
807	Section 20.  Section 701.02, Florida Statutes, is amended
808	to read:
809	701.02  Assignment not effectual against creditors unless
810	recorded and indicated in title of document; applicability.--
811	(1)  An No assignment of a mortgage upon real property or
812	of any interest therein is not, shall be good or effectual in
813	law or equity, against creditors or subsequent purchasers, for a
814	valuable consideration, and without notice, unless the
815	assignment is contained in a document that which, in its title,
816	indicates an assignment of mortgage and is recorded according to
817	law.
818	(2)  The provisions of This section shall also applies
819	extend to assignments of mortgages resulting from transfers of
820	all or any part or parts of the debt, note or notes secured by
821	mortgage, and none of same is shall be effectual in law or in
822	equity against creditors or subsequent purchasers for a valuable
823	consideration without notice, unless a duly executed assignment
824	be recorded according to law.
825	(3)  Any assignment of a mortgage, duly executed and
826	recorded according to law, purporting to assign the principal of
827	the mortgage debt or the unpaid balance of such principal,
828	shall, as against subsequent purchasers and creditors for value
829	and without notice, be held and deemed to assign any and all
830	accrued and unpaid interest secured by such mortgage, unless
831	such interest is shall be specifically and affirmatively
832	reserved in such an assignment by the assignor, and a no
833	reservation of such interest or any part thereof may not shall
834	be implied.
835	(4)  Notwithstanding subsections (1), (2), and (3)
836	governing the assignment of mortgages, the provisions of the
837	Uniform Commercial Code of this state, chapters 670-680, govern
838	the attachment and perfection of a security interest in a
839	mortgage upon real property and in a promissory note or other
840	right to payment or performance secured by that mortgage. The
841	assignment of such a mortgage need not be recorded under this
842	section for purposes of attachment or perfection of a security
843	interest in the mortgage under the Uniform Commercial Code.
844	(5)  Notwithstanding subsection (4), a creditor or
845	subsequent purchaser of real property or any interest therein,
846	for valuable consideration and without notice, is entitled to
847	rely on a full or partial release, discharge, consent, joinder,
848	subordination, satisfaction, or assignment of a mortgage upon
849	such property made by the mortgagee of record, without regard to
850	the filing of any Uniform Commercial Code financing statement
851	that purports to perfect a security interest in the mortgage or
852	in a promissory note or other right to payment or performance
853	secured by the mortgage, and the filing of any such financing
854	statement does not constitute notice for the purposes of this
855	section. For the purposes of this subsection, the term
856	"mortgagee of record" means the person named as the mortgagee in
857	the recorded mortgage or, if an assignment of the mortgage has
858	been recorded in accordance with this section, the term
859	"mortgagee of record" means the assignee named in the recorded
860	assignment.
861	Section 21.  Except as otherwise expressly provided in this
862	act, this act shall take effect upon becoming a law.

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