1 | A bill to be entitled |
2 | An act relating to debts and debtors and administration of |
3 | insolvent estates; amending s. 222.25, F.S.; providing |
4 | that a debtor's personal property of a specified value is |
5 | exempt from legal process if the debtor does not receive a |
6 | homestead exemption; amending s. 727.103, F.S.; revising |
7 | definitions; amending s. 727.104, F.S.; revising |
8 | requirements for commencement of proceedings; specifying |
9 | forms for verification of assignment and schedules by |
10 | assignor and acceptance by assignee; amending s. 727.105, |
11 | F.S.; revising requirements for proceedings against an |
12 | assignee; amending s. 727.108, F.S.; revising and |
13 | expanding the duties of assignees; amending s. 727.109, |
14 | F.S.; revising and expanding powers of a court in certain |
15 | actions; amending s. 727.110, F.S.; conforming cross- |
16 | references; amending s. 727.111, F.S.; revising |
17 | requirements for notices of assignments; amending s. |
18 | 727.112, F.S.; providing limitations on certain claims for |
19 | damages; amending s. 727.113, F.S.; providing additional |
20 | requirements for filing objections to claims; amending s. |
21 | 727.114, F.S.; revising requirements and criteria for |
22 | priority of claims; providing for enforceability of |
23 | subordination agreements under certain circumstances; |
24 | providing for subordinating certain claims for damages for |
25 | rescission; providing an exception; providing an effective |
26 | date. |
27 |
|
28 | Be It Enacted by the Legislature of the State of Florida: |
29 |
|
30 | Section 1. Subsection (4) is added to section 222.25, |
31 | Florida Statutes, to read: |
32 | 222.25 Other individual property exempt from legal |
33 | process.--The following property is exempt from attachment, |
34 | garnishment, or other legal process: |
35 | (4) A debtor's interest in personal property, not to |
36 | exceed $4,000, if the debtor does not claim or receive the |
37 | benefits of a homestead exemption under s. 4, Art. X of the |
38 | State Constitution. |
39 | Section 2. Section 727.103, Florida Statutes, is amended |
40 | to read: |
41 | 727.103 Definitions.--As used in this chapter, unless the |
42 | context requires a different meaning, the term: |
43 | (1) "Asset" means a legal or equitable interest of the |
44 | assignor in property, which shall include anything that may be |
45 | the subject of ownership, whether real or personal, tangible or |
46 | intangible, including claims and causes of action, whether |
47 | arising by contract or in tort, wherever located and by whomever |
48 | held at the date of the assignment, except property exempt by |
49 | law from forced sale. |
50 | (2) "Assignee" means a natural person solely in such |
51 | person's capacity as an assignee for the benefit of creditors |
52 | under the provisions of this chapter, which assignee shall not |
53 | be a creditor or an equity security holder or have any interest |
54 | adverse to the interest of the estate. |
55 | (3) "Assignor" means the person or entity which has |
56 | executed and delivered the assignment to the assignee. |
57 | (4) "Assignment" means an assignment for the benefit of |
58 | creditors made under this chapter. |
59 | (5) "Claims bar date" means the date which is 120 days |
60 | after the date on which the petition is filed with the court. |
61 | (6) "Consensual lienholder" means a creditor that has been |
62 | granted a security interest or lien in personal property or real |
63 | property of the assignor prior to the date on which a petition |
64 | is filed with the court and whose security interest or lien has |
65 | been perfected in accordance with applicable law. |
66 | (7)(5) "Court" means the circuit court where the petition |
67 | is filed in accordance with s. 727.104(2). |
68 | (8)(6) "Creditor" means any person having a claim against |
69 | the assignor, whether such claim is contingent, liquidated, |
70 | unliquidated, or disputed. |
71 | (9)(7) "Estate" means all of the assets of the assignor. |
72 | (10)(8) "Filing date" means the date upon which the |
73 | original petition is filed in accordance with s. 727.104(2). |
74 | (11)(9) "Lien" means a charge against or an interest in |
75 | property to secure payment of a debt or performance of an |
76 | obligation, and includes a security interest created by |
77 | agreement, a judicial lien obtained by legal or equitable |
78 | process or proceedings, a common-law lien, or a statutory lien. |
79 | (12)(10) "Liquidation value" means the value in cash |
80 | obtainable upon a forced sale of assets after payment of valid |
81 | liens encumbering said assets. |
82 | (13)(11) "Petition" means the initial document filed with |
83 | the court, as set forth in s. 727.104(2), establishing the |
84 | court's jurisdiction under this chapter. |
85 | Section 3. Subsection (1) of section 727.104, Florida |
86 | Statutes, is amended to read: |
87 | 727.104 Commencement of proceedings.-- |
88 | (1)(a) An irrevocable assignment and schedules shall be |
89 | made in writing, containing the name and address of the assignor |
90 | and assignee and providing for an equal distribution of the |
91 | estate according to the priorities set forth in s. 727.114. |
92 | (b) The assignment shall be in substantially the following |
93 | form: |
94 |
|
95 | ASSIGNMENT |
96 |
|
97 | ASSIGNMENT, made this _____ day of _____, (year) , between |
98 | _____, with a principal place of business at _____, hereinafter |
99 | "assignor," and _____, whose address is _____, hereinafter |
100 | "assignee." |
101 | WHEREAS, the assignor has been engaged in the business of |
102 | __________; |
103 | WHEREAS, the assignor is indebted to creditors, as set |
104 | forth in Schedule A annexed hereto, is unable to pay its debts |
105 | as they become due, and is desirous of providing for the payment |
106 | of its debts, so far as it is possible by an assignment of all |
107 | of its assets for that purpose. |
108 | NOW, THEREFORE, the assignor, in consideration of the |
109 | assignee's acceptance of this assignment, and for other good and |
110 | valuable consideration, hereby grants, assigns, conveys, |
111 | transfers, and sets over, unto the assignee, her or his |
112 | successors and assigns, all of its assets, except such assets as |
113 | are exempt by law from levy and sale under an execution, |
114 | including, but not limited to, all real property, fixtures, |
115 | goods, stock, inventory, equipment, furniture, furnishings, |
116 | accounts receivable, bank deposits, cash, promissory notes, cash |
117 | value and proceeds of insurance policies, claims and demands |
118 | belonging to the assignor, and all books, records, and |
119 | electronic data pertaining to all such assets, wherever such |
120 | assets may be located, hereinafter the "estate," as which assets |
121 | are, to the best knowledge and belief of the assignor, set forth |
122 | on Schedule B annexed hereto. |
123 | The assignee shall take possession of and protect and |
124 | preserve all such assets and administer the estate in accordance |
125 | with the provisions of chapter 727, Florida Statutes, and shall |
126 | liquidate the assets of the estate with reasonable dispatch and |
127 | convert the estate into money, collect all claims and demands |
128 | hereby assigned as may be collectible, and pay and discharge all |
129 | reasonable expenses, costs, and disbursements in connection with |
130 | the execution and administration of this assignment from the |
131 | proceeds of such liquidations and collections. |
132 | The assignee shall then pay and discharge in full, to the |
133 | extent that funds are available in the estate after payment of |
134 | administrative expenses, costs, and disbursements, all of the |
135 | debts and liabilities now due from the assignor, including |
136 | interest on such debts and liabilities. If funds of the estate |
137 | shall not be sufficient to pay such debts and liabilities in |
138 | full, then the assignee shall pay from funds of the estate such |
139 | debts and liabilities, on a pro rata basis and in proportion to |
140 | their priority as set forth in s. 727.114, Florida Statutes. |
141 | In the event that all debts and liabilities are paid in |
142 | full, any funds of the estate remaining shall be returned to the |
143 | assignor. |
144 | To accomplish the purposes of this assignment, the assignor |
145 | hereby appoints the assignee its true and lawful attorney, |
146 | irrevocable, with full power and authority to do all acts and |
147 | things which may be necessary to execute the assignment hereby |
148 | created; to demand and recover from all persons all assets of |
149 | the estate; to sue for the recovery of such assets; to execute, |
150 | acknowledge, and deliver all necessary deeds, instruments, and |
151 | conveyances; and to appoint one or more attorneys under her or |
152 | him to assist the assignee in carrying out her or his duties |
153 | hereunder. |
154 | The assignor hereby authorizes the assignee to sign the |
155 | name of the assignor to any check, draft, promissory note, or |
156 | other instrument in writing which is payable to the order of the |
157 | assignor, or to sign the name of the assignor to any instrument |
158 | in writing, whenever it shall be necessary to do so, to carry |
159 | out the purpose of this assignment. |
160 | The assignee hereby accepts the trust created by the |
161 | assignment, and agrees with the assignor that the assignee will |
162 | faithfully and without delay carry out her or his duties under |
163 | the assignment. |
| |
164 |
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| |
165 |
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| STATE OF FLORIDACOUNTY OF __________ |
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166 |
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| STATE OF FLORIDACOUNTY OF __________ |
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167 |
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168 | The foregoing assignment was acknowledged before me this |
169 | _____ day of _____, (year) , by _____, as assignor, and by |
170 | _____, as assignee, for the purposes therein expressed. |
171 |
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172 | (Signature of Notary Public - State of Florida) |
173 | (Print, Type, or Stamp Commissioned Name of Notary Public) |
174 |
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175 | Personally Known _____ OR Produced Identification _____ |
176 |
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177 | Type of Identification Produced_______________ |
178 | (c) The assignment shall have annexed thereto as Schedule |
179 | A a true list of all of the assignor's known creditors, their |
180 | mailing addresses, the amount and nature of their claims, and |
181 | whether their claims are disputed; and as Schedule B a true list |
182 | of all assets of the estate, including the estimated liquidation |
183 | value of the assets, their location, and, if real property, a |
184 | legal description thereof, as of the date of the assignment. |
185 | (d) The schedules shall be in substantially the following |
186 | forms: |
187 |
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| SCHEDULE A--CREDITOR LIST |
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188 |
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| 1. List all secured creditors showing: |
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189 |
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| Name | Address | Amount | Collateral | Whether or not disputed |
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190 |
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| 2. List all wages owed showing: |
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191 |
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| Name | Address | Amount |
| Whether or not disputed |
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192 |
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| |
193 |
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| Name | Address | Amount |
| Whether or not disputed |
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194 |
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| 4. List all taxes owed showing: |
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195 |
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| Name | Address | Amount |
| Whether or not disputed |
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196 |
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| 5. List all unsecured claims showing: |
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197 |
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| Name | Address | Amount |
| Whether or not disputed |
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198 |
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| 6. List all owners or shareholders showing: |
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199 |
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| Name | Address | Amount |
| Whether or not disputed |
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200 |
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| 7. List all pending litigation and opposing counsel of record |
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201 |
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| Style | Parties | Opposing Counsel of Record |
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202 |
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203 |
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204 | SCHEDULE B--LIST OF ASSETS |
205 |
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206 | List each category of assets and for each give approximate value |
207 | obtainable for the asset on the date of assignment, and address |
208 | where asset is located. |
209 |
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210 | I. Nonexempt Property |
211 |
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| Description and Location | Liquidation Value at Date of Assignment |
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212 |
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213 | 1. Legal description and street address of real estate, |
214 | including leasehold interests: |
215 | 2. Fixtures: |
216 | 3. Cash and bank accounts: |
217 | 4. Inventory: |
218 | 5. Accounts receivable: |
219 | 6. Equipment: |
220 | 7. Prepaid expenses, including deposits, insurance, rents, and |
221 | utilities: |
222 | 8. Other, including loans to third parties, claims, and choses |
223 | in action: |
224 |
|
225 | II. Exempt Property |
226 |
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| Description and Location | Liquidation Value at Date of Assignment |
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227 |
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228 | (e) The assignment and schedules shall be duly verified |
229 | upon oath by the assignor, and accepted by the assignee under |
230 | oath, in substantially the following form:. |
231 |
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232 | VERIFICATION OF ASSIGNMENT |
233 | AND SCHEDULES BY ASSIGNOR |
234 |
|
235 | The undersigned, [Name], [Position with Assignor] of |
236 | [Assignor], hereby verifies the Assignment (the "Assignment") of |
237 | all of its rights, title and interest in and to all of its |
238 | assets, as indicated on the attached Schedules to that certain |
239 | Assignment as filed with this Court on ____________, and further |
240 | verifies each of the facts set forth in the Schedules annexed to |
241 | the Assignment to the best of my knowledge and belief. |
242 |
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243 | _________________________________________________________ |
244 | _________________________[Name], [Position with Assignor] |
245 |
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246 |
|
247 | STATE OF FLORIDA__________) |
248 | __________________________) SS: |
249 | COUNTY OF [_____________]_) |
250 |
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251 |
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252 | Sworn to and subscribed before me this ____ day of ________. |
253 | ___________________________________ |
254 | NOTARY PUBLIC, |
255 | STATE OF FLORIDA AT LARGE |
256 |
|
257 | Print Name:________________________ |
258 | Commission No:_____________________ |
259 | Commission Expires:________________ |
260 |
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261 | Personally known__________________________________ |
262 | or Produced Identification________________________ |
263 | Type of Identification Produced___________________ |
264 |
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265 |
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266 | ACCEPTANCE BY ASSIGNEE |
267 |
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268 | The undersigned, [Assignee], the Assignee herein, duly |
269 | acknowledges that the Assignee accepts delivery of the within |
270 | Assignment and that he or she will duly perform the duties |
271 | imposed upon the Assignee pursuant to Florida Statutes, Chapter |
272 | 727. |
273 |
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274 |
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275 | ________________________________ |
276 | [Assignee] |
277 |
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278 | STATE OF FLORIDA__________) |
279 | __________________________) SS: |
280 | COUNTY OF [_____________]_) |
281 |
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282 |
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283 | Sworn to and subscribed before me this _____ day of _______. |
284 |
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285 |
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286 | ___________________________________ |
287 | NOTARY PUBLIC, |
288 | STATE OF FLORIDA AT LARGE |
289 |
|
290 | Print Name:________________________ |
291 | Commission No:_____________________ |
292 | Commission Expires:________________ |
293 |
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294 | Personally known_____________________________ |
295 | or Produced Identification___________________ |
296 | Type of Identification Produced______________ |
297 |
|
298 | Section 4. Section 727.105, Florida Statutes, is amended |
299 | to read: |
300 | 727.105 Proceedings against assignee.--No proceeding may |
301 | be commenced against the assignee except as provided in this |
302 | chapter, but nothing contained herein shall affect any action or |
303 | proceeding by a governmental unit to enforce such governmental |
304 | unit's police or regulatory power. Except in the case of a |
305 | consensual lienholder secured creditor enforcing its rights in |
306 | personal property or real property collateral under chapter 679, |
307 | there shall be no levy, execution, attachment, or the like in |
308 | respect of any judgment against assets of the estate, other than |
309 | real property, in the possession, custody, or control of the |
310 | assignee. |
311 | Section 5. Section 727.108, Florida Statutes, is amended |
312 | to read: |
313 | 727.108 Duties of assignee.--The assignee shall: |
314 | (1) Collect and reduce to money the assets of the estate, |
315 | whether by suit in any court of competent jurisdiction or by |
316 | public or private sale, including, but not limited to, |
317 | prosecuting any tort claims or causes of action that were |
318 | previously held by the assignor, regardless of any generally |
319 | applicable law concerning the nonassignability of tort claims or |
320 | causes of action. |
321 | (a) In respect of the estate's claims and causes of |
322 | action, the assignee may prosecute such claims or causes of |
323 | action as provided in this subsection or sell and assign, in |
324 | whole or in part, such claims or causes of action to another |
325 | person or entity on such terms as the assignee determines are in |
326 | the best interest of the estate pursuant to s. 727.111(4). |
327 | (b) In an action in any court by the assignee, or the |
328 | first immediate transferee of the assignee, other than an |
329 | affiliate or insider of the assignor, against any defendant to |
330 | assert a claim or chose in action of the estate, the claim shall |
331 | not be subject to, and any remedy shall not be limited by, any |
332 | defense based on the assignor's acquiescence, cooperation, or |
333 | participation in the wrongful act by the defendant which forms |
334 | the basis of such claim or chose in action.; |
335 | (2) Within 30 days after the filing date, examine the |
336 | assignor, under oath, concerning the acts, conduct, assets, |
337 | liabilities, and financial condition of the assignor or any |
338 | matter related to the assignee's administration of the estate, |
339 | unless excused by the court for good cause shown.; |
340 | (3) Give notice to creditors of all matters concerning the |
341 | administration of the estate, pursuant to the provisions of s. |
342 | 727.111.; |
343 | (4) Conduct the business of the assignor for a limited |
344 | period not to exceed 14 calendar days if in the best interest of |
345 | the estate, or for a longer period periods, if in the best |
346 | interest of the estate, upon notice and until such time as an |
347 | objection, if any, is sustained by the court, provided that the |
348 | assignee shall not operate the business of the assignor for a |
349 | period of longer than 45 calendar days without a court order |
350 | authorizing such operation if an objection by a party in |
351 | interest is interposed to the assignee's motion for authority to |
352 | operate the assignor's business. authorization of the court; |
353 | (5) To the extent reasonable in the exercise of the |
354 | assignee's business judgment, reject an unexpired lease of |
355 | nonresidential real property or of personal property under which |
356 | the assignor is the lessee. |
357 | (6)(5) To the extent reasonable and necessary, pay |
358 | administrative expenses of the estate, subject, however, to s. |
359 | 727.114(1)(a).; |
360 | (7)(6) To the extent necessary, employ at the expense of |
361 | the estate one or more appraisers, auctioneers, accountants, |
362 | attorneys, or other professional persons, to assist the assignee |
363 | in carrying out his or her duties under this chapter.; |
364 | (8)(7) Keep regular accounts and furnish such information |
365 | concerning the estate as may be reasonably requested by |
366 | creditors or other parties in interest.; |
367 | (9)(8) File with the court an interim report of receipts |
368 | and disbursements within 6 months after the filing date unless |
369 | excused by the court or unless the estate has been sooner |
370 | distributed in full.; |
371 | (10)(9) Examine the validity and priority of all claims |
372 | against the estate.; |
373 | (11)(10) Abandon assets to duly perfected secured or lien |
374 | creditors, where, after due investigation, he or she determines |
375 | that the estate has no equity in such assets or such assets are |
376 | burdensome to the estate or are of inconsequential value and |
377 | benefit to the estate.; |
378 | (12)(11) Pay dividends and secured or priority claims as |
379 | often as is compatible with the best interests of the estate and |
380 | close the estate as expeditiously as possible.; and |
381 | (13)(12) File with the court a final report of all |
382 | receipts and disbursements and file an application for his or |
383 | her discharge pursuant to the provisions of s. 727.116. |
384 | Section 6. Section 727.109, Florida Statutes, is amended |
385 | to read: |
386 | 727.109 Power of the court.--The court shall have power |
387 | to: |
388 | (1) Enforce all provisions of this chapter.; |
389 | (2) Set, approve, or reconsider the amount of the |
390 | assignee's bond.; |
391 | (3) Upon notice, and hearing if requested, authorize the |
392 | business of the assignor to be conducted for limited periods by |
393 | the assignee for a period longer than 14 calendar days, if in |
394 | the best interest of the estate.; |
395 | (4) Allow or disallow claims against the estate and |
396 | determine their priority and establish a deadline, upon motion |
397 | by the assignee, for the filing of all claims against the |
398 | assignment estate arising from and after the date on which the |
399 | assignor's petition for assignment was filed with the court, |
400 | which deadline shall occur not less than 30 days prior to notice |
401 | by mail of the order establishing such deadline.; |
402 | (5) Determine any claims of exemption by the assignor, if |
403 | disputed.; |
404 | (6) Authorize the assignee to reject an unexpired lease of |
405 | nonresidential real property or of personal property under which |
406 | the assignor is the lessee pursuant to s. 727.108(5). |
407 | (7) Upon notice as provided pursuant to s. 727.111 to all |
408 | creditors and consensual lienholders, hear and determine a |
409 | motion made by the assignee for approval of a proposed sale of |
410 | assets of the estate other than in the ordinary course of |
411 | business, or the compromise or settlement of a controversy, and |
412 | enter an order granting such motion notwithstanding the lack of |
413 | objection to such motion if the assignee reasonably believes |
414 | that such order is necessary to proceed with the action |
415 | contemplated by the motion. |
416 | (8)(6) Hear and determine any of the following actions |
417 | brought by the assignee, which she or he is hereby empowered to |
418 | maintain: |
419 | (a) Enforce the turnover of assets of the estate pursuant |
420 | to s. 727.106.; |
421 | (b) Determine the validity, priority, and extent of a lien |
422 | or other interests in assets of the estate, or to subordinate or |
423 | avoid an unperfected security interest pursuant to the |
424 | assignee's rights as a lien creditor under s. 679.301.; |
425 | (c) Avoid any conveyance or transfer void or voidable by |
426 | law.; |
427 | (9)(7) Approve the assignee's final report and interim and |
428 | final distributions to creditors.; |
429 | (10)(8) Approve reasonable fees and the reimbursement of |
430 | expenses for the assignee and all professional persons retained |
431 | by the assignee, upon objection of a party in interest or upon |
432 | the court's own motion.; |
433 | (11)(9) Hear and determine any motion brought by a party |
434 | in interest or by the court to close the estate after the |
435 | passage of 1 year from the date of filing of the petition.; |
436 | (12)(10) Discharge the assignee and the assignee's surety |
437 | from liability upon matters included in the assignee's final |
438 | report.; |
439 | (13)(11) Reopen estates for cause shown.; |
440 | (14)(12) Punish by contempt any failure to comply with the |
441 | provisions of this chapter or any order of the court made |
442 | pursuant to this chapter.; and |
443 | (15)(13) Exercise such other and further powers as are |
444 | necessary to enforce or carry out the provisions of this |
445 | chapter. |
446 | Section 7. Subsection (1) of section 727.110, Florida |
447 | Statutes, is amended to read: |
448 | 727.110 Actions by assignee and other parties in |
449 | interest.-- |
450 | (1) All matters requiring court authorization under this |
451 | chapter shall be brought by motion, except for the following |
452 | matters, which shall be brought by supplemental proceeding, as |
453 | provided in subsection (2): |
454 | (a) An action by the assignee to recover money or other |
455 | assets of the estate; |
456 | (b) An action by the assignee to determine the validity, |
457 | priority, or extent of a lien or other interest in property or |
458 | to subordinate or avoid an unperfected security interest under |
459 | s. 727.109(8)(6)(b); and |
460 | (c) An action by the assignee to avoid any conveyance or |
461 | transfer void or voidable by law under s. 727.109(8)(6)(c). |
462 | Section 8. Subsections (4) and (8) of section 727.111, |
463 | Florida Statutes, are amended to read: |
464 | 727.111 Notice.-- |
465 | (4) The assignee shall give the assignor and all creditors |
466 | not less than 20 days' notice by mail of a proposed sale of |
467 | assets of the estate other than in the ordinary course of |
468 | business, the assignee's continued operation of the assignor's |
469 | business for a period of longer than 14 calendar days, the |
470 | compromise or settlement of a controversy, and the payment of |
471 | fees and expenses to the assignee and to professional persons |
472 | employed by the assignee pursuant to s. 727.108(7)(6). Any and |
473 | all objections to the proposed action must be filed and served |
474 | upon the assignee and the assignee's attorney, if any, not less |
475 | than 3 days before the date of the proposed action. The notice |
476 | shall include a description of the proposed action to be taken |
477 | and the date of the proposed action, and shall set forth the |
478 | date and place for the hearing at which any objections shall be |
479 | heard. If no objections are timely filed and served, the |
480 | assignee may take such action as described in the notice without |
481 | further order of the court or may obtain an order of the court |
482 | granting such motion if the assignee reasonably believes that |
483 | such order is necessary to proceed with the action contemplated |
484 | by the motion. |
485 | (8) Wherever notice is required to be given under this |
486 | chapter, a certificate of service of such notice shall be filed |
487 | with the court and notice shall be given to all consensual |
488 | lienholders and counsel that have filed a notice of appearance |
489 | with the court or are identified in the assignor's schedules. |
490 | Section 9. Subsections (6) and (7) are added to section |
491 | 727.112, Florida Statutes, to read: |
492 | 727.112 Proof of claim.-- |
493 | (6) If a claim for damages results from the assignee's |
494 | rejection of a lease of real property, such claim shall be |
495 | limited to the sum of: |
496 | (a) The rent reserved by such lease, without acceleration, |
497 | for the greater of 1 year, or 15 percent of the remaining term |
498 | of such lease, following the earlier of the date of assignment |
499 | or the date on which such lessor repossessed or the lessee |
500 | surrendered the leased property. |
501 | (b) Any unpaid rent due under such lease, without |
502 | acceleration, on the earlier of such dates. |
503 | (c) Reasonable attorney's fees and costs incurred by the |
504 | lessor in connection with such lease. |
505 | (d) The lessor's reasonable costs incurred in reletting |
506 | the premises previously leased by the assignor. |
507 | (7) If a claim for damages results from the termination of |
508 | an employment contract, such claim shall be limited to the sum |
509 | of: |
510 | (a) The compensation provided by such contract, without |
511 | acceleration, for 1 year following the earlier of the date of |
512 | assignment or the date on which the assignor or assignee, as |
513 | applicable, directed the employee to terminate, or such employee |
514 | terminated, performance under such contract. |
515 | (b) Any unpaid compensation due under such contract, |
516 | without acceleration, on the earlier of such dates. |
517 | Section 10. Section 727.113, Florida Statutes, is amended |
518 | to read: |
519 | 727.113 Objections to claims.-- |
520 | (1) At any time prior to the entry of an order approving |
521 | the assignee's final report, the assignee or any party in |
522 | interest, including another creditor of the assignor, may file |
523 | with the court an objection to a claim, which objection shall be |
524 | in writing and shall set forth the nature of the objection. A |
525 | copy of the objection, together with notice of hearing thereon, |
526 | shall be mailed to the creditor at least 20 days prior to the |
527 | hearing. All claims properly filed with the assignee and not |
528 | disallowed by the court shall constitute all claims entitled to |
529 | distribution from the estate. |
530 | (2) Following expiration of the claims bar date, the |
531 | assignee shall create a register of all creditors that have |
532 | filed claims against the assignor's estate and shall make such |
533 | register available upon request to any creditor or other party |
534 | in interest. |
535 | (3) The assignee, as well as any creditor or any party in |
536 | interest, shall have standing to challenge the validity, extent, |
537 | or priority of any claim filed by a creditor against the |
538 | assignor's estate. |
539 | (4) A creditor whose claim is secured by a lien against |
540 | property of the estate shall have 60 days following the sale or |
541 | disposition of the property securing his or her claim to file a |
542 | claim for an unsecured deficiency, notwithstanding the passage |
543 | of the claims bar date. Notwithstanding the 60-day time period, |
544 | if such a creditor fails to file with the assignee a deficiency |
545 | claim within 10 days after the filing and service by mail of the |
546 | assignee's final report of all receipts and disbursements, such |
547 | creditor's deficiency claim shall be disallowed as untimely and |
548 | such creditor shall not be entitled to share in any distribution |
549 | made to holders of unsecured claims pursuant to s. 727.114(1)(f) |
550 | on account of such creditor's deficiency claim. |
551 | Section 11. Section 727.114, Florida Statutes, is amended |
552 | to read: |
553 | 727.114 Priority of claims.--Allowed claims shall receive |
554 | distribution under this chapter in the following order of |
555 | priority and, with the exception of paragraph subsection (1)(a), |
556 | on a pro rata basis: |
557 | (1)(a) Creditors with liens on assets of the estate, which |
558 | liens are duly perfected pursuant to applicable law, shall |
559 | receive the proceeds from the disposition of their collateral, |
560 | less the reasonable, necessary expenses of preserving or |
561 | disposing of such collateral to the extent of any benefit to |
562 | such creditors. If and to the extent that such proceeds are less |
563 | than the amount of a creditor's claim or a creditor's lien is |
564 | avoided pursuant to s. 727.109(8)(6)(c), such a creditor shall |
565 | be deemed to be an unsecured creditor for such deficiency |
566 | pursuant to paragraph (f) subsection (6) of this section. |
567 | (b)(2) Expenses incurred during the administration of the |
568 | estate, other than those expenses allowable under paragraph (a) |
569 | subsection (1), including allowed fees and reimbursements of all |
570 | expenses of the assignee and professional persons employed by |
571 | the assignee under s. 727.108(6), and rent incurred by the |
572 | assignee in occupying any premises in which the assets of the |
573 | assignment estate are located or the business of the assignor is |
574 | conducted, from and after the date of the assignment, through |
575 | and until the earlier of the date on which the lease for such |
576 | premises is rejected pursuant to an order of the court, or the |
577 | date of termination of such lease pursuant to s. 727.108(6). |
578 | (c)(3) Unsecured claims of governmental units for taxes |
579 | which accrued within 3 years prior to the filing date. |
580 | (d)(4) Claims for wages, salaries, or commissions, |
581 | including vacation, severance, and sick leave pay, or |
582 | contributions to an employee benefit plan earned by employees of |
583 | the assignor individual within 180 90 days before of the filing |
584 | date or the cessation of the assignor's business, whichever |
585 | occurs first, but only to the extent of $10,000 $2,000. |
586 | (e)(5) Allowed unsecured claims, to the extent of $2,225 |
587 | $900 for each individual, arising from the deposit with the |
588 | assignor before the filing date of money in connection with the |
589 | purchase, lease, or rental of property or the purchase of |
590 | services for personal, family, or household use by such |
591 | individuals that were not delivered or provided. |
592 | (f)(6) Unsecured claims. |
593 | (2) A subordination agreement is enforceable in a case |
594 | arising under this chapter to the same extent that such |
595 | agreement is enforceable under applicable law. |
596 | (3) For the purpose of distribution under this chapter, a |
597 | claim arising from rescission of a purchase or sale of a |
598 | security of the assignor or of an affiliate of the assignor for |
599 | damages arising from the purchase or sale of such a security, or |
600 | for reimbursement or contribution allowed under this chapter on |
601 | account of such a claim, shall be subordinated to all claims or |
602 | interests that are senior to or equal to the claim or interest |
603 | represented by such security, except if such security is common |
604 | stock, such claim shall have the same priority as common stock. |
605 |
|
606 | If all of the above classes have been paid in full, any residue |
607 | shall be paid to the assignor. |
608 | Section 12. This act shall take effect July 1, 2007. |