HB 1445

1
A bill to be entitled
2An act relating to debts and debtors and administration of
3insolvent estates; amending s. 222.25, F.S.; providing
4that a debtor's personal property of a specified value is
5exempt from legal process if the debtor does not receive a
6homestead exemption; amending s. 727.103, F.S.; revising
7definitions; amending s. 727.104, F.S.; revising
8requirements for commencement of proceedings; specifying
9forms for verification of assignment and schedules by
10assignor and acceptance by assignee; amending s. 727.105,
11F.S.; revising requirements for proceedings against an
12assignee; amending s. 727.108, F.S.; revising and
13expanding the duties of assignees; amending s. 727.109,
14F.S.; revising and expanding powers of a court in certain
15actions; amending s. 727.110, F.S.; conforming cross-
16references; amending s. 727.111, F.S.; revising
17requirements for notices of assignments; amending s.
18727.112, F.S.; providing limitations on certain claims for
19damages; amending s. 727.113, F.S.; providing additional
20requirements for filing objections to claims; amending s.
21727.114, F.S.; revising requirements and criteria for
22priority of claims; providing for enforceability of
23subordination agreements under certain circumstances;
24providing for subordinating certain claims for damages for
25rescission; providing an exception; providing an effective
26date.
27
28Be It Enacted by the Legislature of the State of Florida:
29
30     Section 1.  Subsection (4) is added to section 222.25,
31Florida Statutes, to read:
32     222.25  Other individual property exempt from legal
33process.--The following property is exempt from attachment,
34garnishment, or other legal process:
35     (4)  A debtor's interest in personal property, not to
36exceed $4,000, if the debtor does not claim or receive the
37benefits of a homestead exemption under s. 4, Art. X of the
38State Constitution.
39     Section 2.  Section 727.103, Florida Statutes, is amended
40to read:
41     727.103  Definitions.--As used in this chapter, unless the
42context requires a different meaning, the term:
43     (1)  "Asset" means a legal or equitable interest of the
44assignor in property, which shall include anything that may be
45the subject of ownership, whether real or personal, tangible or
46intangible, including claims and causes of action, whether
47arising by contract or in tort, wherever located and by whomever
48held at the date of the assignment, except property exempt by
49law from forced sale.
50     (2)  "Assignee" means a natural person solely in such
51person's capacity as an assignee for the benefit of creditors
52under the provisions of this chapter, which assignee shall not
53be a creditor or an equity security holder or have any interest
54adverse to the interest of the estate.
55     (3)  "Assignor" means the person or entity which has
56executed and delivered the assignment to the assignee.
57     (4)  "Assignment" means an assignment for the benefit of
58creditors made under this chapter.
59     (5)  "Claims bar date" means the date which is 120 days
60after the date on which the petition is filed with the court.
61     (6)  "Consensual lienholder" means a creditor that has been
62granted a security interest or lien in personal property or real
63property of the assignor prior to the date on which a petition
64is filed with the court and whose security interest or lien has
65been perfected in accordance with applicable law.
66     (7)(5)  "Court" means the circuit court where the petition
67is filed in accordance with s. 727.104(2).
68     (8)(6)  "Creditor" means any person having a claim against
69the assignor, whether such claim is contingent, liquidated,
70unliquidated, 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
73original petition is filed in accordance with s. 727.104(2).
74     (11)(9)  "Lien" means a charge against or an interest in
75property to secure payment of a debt or performance of an
76obligation, and includes a security interest created by
77agreement, a judicial lien obtained by legal or equitable
78process or proceedings, a common-law lien, or a statutory lien.
79     (12)(10)  "Liquidation value" means the value in cash
80obtainable upon a forced sale of assets after payment of valid
81liens encumbering said assets.
82     (13)(11)  "Petition" means the initial document filed with
83the court, as set forth in s. 727.104(2), establishing the
84court's jurisdiction under this chapter.
85     Section 3.  Subsection (1) of section 727.104, Florida
86Statutes, is amended to read:
87     727.104  Commencement of proceedings.--
88     (1)(a)  An irrevocable assignment and schedules shall be
89made in writing, containing the name and address of the assignor
90and assignee and providing for an equal distribution of the
91estate according to the priorities set forth in s. 727.114.
92     (b)  The assignment shall be in substantially the following
93form:
94
95
ASSIGNMENT
96
97ASSIGNMENT, 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
104forth in Schedule A annexed hereto, is unable to pay its debts
105as they become due, and is desirous of providing for the payment
106of its debts, so far as it is possible by an assignment of all
107of its assets for that purpose.
108     NOW, THEREFORE, the assignor, in consideration of the
109assignee's acceptance of this assignment, and for other good and
110valuable consideration, hereby grants, assigns, conveys,
111transfers, and sets over, unto the assignee, her or his
112successors and assigns, all of its assets, except such assets as
113are exempt by law from levy and sale under an execution,
114including, but not limited to, all real property, fixtures,
115goods, stock, inventory, equipment, furniture, furnishings,
116accounts receivable, bank deposits, cash, promissory notes, cash
117value and proceeds of insurance policies, claims and demands
118belonging to the assignor, and all books, records, and
119electronic data pertaining to all such assets, wherever such
120assets may be located, hereinafter the "estate," as which assets
121are, to the best knowledge and belief of the assignor, set forth
122on Schedule B annexed hereto.
123     The assignee shall take possession of and protect and
124preserve all such assets and administer the estate in accordance
125with the provisions of chapter 727, Florida Statutes, and shall
126liquidate the assets of the estate with reasonable dispatch and
127convert the estate into money, collect all claims and demands
128hereby assigned as may be collectible, and pay and discharge all
129reasonable expenses, costs, and disbursements in connection with
130the execution and administration of this assignment from the
131proceeds of such liquidations and collections.
132     The assignee shall then pay and discharge in full, to the
133extent that funds are available in the estate after payment of
134administrative expenses, costs, and disbursements, all of the
135debts and liabilities now due from the assignor, including
136interest on such debts and liabilities. If funds of the estate
137shall not be sufficient to pay such debts and liabilities in
138full, then the assignee shall pay from funds of the estate such
139debts and liabilities, on a pro rata basis and in proportion to
140their priority as set forth in s. 727.114, Florida Statutes.
141     In the event that all debts and liabilities are paid in
142full, any funds of the estate remaining shall be returned to the
143assignor.
144     To accomplish the purposes of this assignment, the assignor
145hereby appoints the assignee its true and lawful attorney,
146irrevocable, with full power and authority to do all acts and
147things which may be necessary to execute the assignment hereby
148created; to demand and recover from all persons all assets of
149the estate; to sue for the recovery of such assets; to execute,
150acknowledge, and deliver all necessary deeds, instruments, and
151conveyances; and to appoint one or more attorneys under her or
152him to assist the assignee in carrying out her or his duties
153hereunder.
154     The assignor hereby authorizes the assignee to sign the
155name of the assignor to any check, draft, promissory note, or
156other instrument in writing which is payable to the order of the
157assignor, or to sign the name of the assignor to any instrument
158in writing, whenever it shall be necessary to do so, to carry
159out the purpose of this assignment.
160     The assignee hereby accepts the trust created by the
161assignment, and agrees with the assignor that the assignee will
162faithfully and without delay carry out her or his duties under
163the assignment.
 

__________Assignor
164
 

__________Assignee
165
 
STATE OF FLORIDACOUNTY OF __________
166
 
STATE OF FLORIDACOUNTY OF __________
167
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
172  (Signature of Notary Public - State of Florida)  
173  (Print, Type, or Stamp Commissioned Name of Notary Public)  
174
175     Personally Known _____ OR Produced Identification _____
176
177     Type of Identification Produced_______________
178     (c)  The assignment shall have annexed thereto as Schedule
179A a true list of all of the assignor's known creditors, their
180mailing addresses, the amount and nature of their claims, and
181whether their claims are disputed; and as Schedule B a true list
182of all assets of the estate, including the estimated liquidation
183value of the assets, their location, and, if real property, a
184legal description thereof, as of the date of the assignment.
185     (d)  The schedules shall be in substantially the following
186forms:
187
 
SCHEDULE A--CREDITOR LIST
188
 
1.  List all secured creditors showing:
189
 
NameAddressAmountCollateralWhether or not disputed
190
 
2.  List all wages owed showing:
191
 
NameAddressAmount
Whether or not disputed
192
 
3.  Consumer deposits:
193
 
NameAddressAmount
Whether or not disputed
194
 
4.  List all taxes owed showing:
195
 
NameAddressAmount
Whether or not disputed
196
 
5.  List all unsecured claims showing:
197
 
NameAddressAmount
Whether or not disputed
198
 
6.  List all owners or shareholders showing:
199
 
NameAddressAmount
Whether or not disputed
200
 
7.  List all pending litigation and opposing counsel of record
201
 
Style Parties Opposing Counsel of Record
202
203
204
SCHEDULE B--LIST OF ASSETS
205
206List each category of assets and for each give approximate value
207obtainable for the asset on the date of assignment, and address
208where asset is located.
209
210I.  Nonexempt Property
211
 
Description and LocationLiquidation Value at Date of Assignment
212
2131.  Legal description and street address of real estate,
214including leasehold interests:
2152.  Fixtures:
2163.  Cash and bank accounts:
2174.  Inventory:
2185.  Accounts receivable:
2196.  Equipment:
2207.  Prepaid expenses, including deposits, insurance, rents, and
221utilities:
2228.  Other, including loans to third parties, claims, and choses
223in action:
224
225II.  Exempt Property
226
 
Description and LocationLiquidation Value at Date of Assignment
227
228     (e)  The assignment and schedules shall be duly verified
229upon oath by the assignor, and accepted by the assignee under
230oath, in substantially the following form:.
231
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
237all of its rights, title and interest in and to all of its
238assets, as indicated on the attached Schedules to that certain
239Assignment as filed with this Court on ____________, and further
240verifies each of the facts set forth in the Schedules annexed to
241the Assignment to the best of my knowledge and belief.
242
243_________________________________________________________
244_________________________[Name], [Position with Assignor]
245
246
247STATE OF FLORIDA__________)
248__________________________) SS:
249COUNTY OF [_____________]_)
250
251
252Sworn to and subscribed before me this ____ day of ________.
253___________________________________
254NOTARY PUBLIC,
255STATE OF FLORIDA AT LARGE
256
257Print Name:________________________
258Commission No:_____________________
259Commission Expires:________________
260
261Personally known__________________________________
262or Produced Identification________________________
263Type of Identification Produced___________________
264
265
266
ACCEPTANCE BY ASSIGNEE
267
268     The undersigned, [Assignee], the Assignee herein, duly
269acknowledges that the Assignee accepts delivery of the within
270Assignment and that he or she will duly perform the duties
271imposed upon the Assignee pursuant to Florida Statutes, Chapter
272727.
273
274
275________________________________
276[Assignee]
277
278STATE OF FLORIDA__________)
279__________________________) SS:
280COUNTY OF [_____________]_)
281
282
283Sworn to and subscribed before me this _____ day of _______.
284
285
286___________________________________
287NOTARY PUBLIC,
288STATE OF FLORIDA AT LARGE
289
290Print Name:________________________
291Commission No:_____________________
292Commission Expires:________________
293
294Personally known_____________________________
295or Produced Identification___________________
296Type of Identification Produced______________
297
298     Section 4.  Section 727.105, Florida Statutes, is amended
299to read:
300     727.105  Proceedings against assignee.--No proceeding may
301be commenced against the assignee except as provided in this
302chapter, but nothing contained herein shall affect any action or
303proceeding by a governmental unit to enforce such governmental
304unit's police or regulatory power. Except in the case of a
305consensual lienholder secured creditor enforcing its rights in
306personal property or real property collateral under chapter 679,
307there shall be no levy, execution, attachment, or the like in
308respect of any judgment against assets of the estate, other than
309real property, in the possession, custody, or control of the
310assignee.
311     Section 5.  Section 727.108, Florida Statutes, is amended
312to read:
313     727.108  Duties of assignee.--The assignee shall:
314     (1)  Collect and reduce to money the assets of the estate,
315whether by suit in any court of competent jurisdiction or by
316public or private sale, including, but not limited to,
317prosecuting any tort claims or causes of action that were
318previously held by the assignor, regardless of any generally
319applicable law concerning the nonassignability of tort claims or
320causes of action.
321     (a)  In respect of the estate's claims and causes of
322action, the assignee may prosecute such claims or causes of
323action as provided in this subsection or sell and assign, in
324whole or in part, such claims or causes of action to another
325person or entity on such terms as the assignee determines are in
326the best interest of the estate pursuant to s. 727.111(4).
327     (b)  In an action in any court by the assignee, or the
328first immediate transferee of the assignee, other than an
329affiliate or insider of the assignor, against any defendant to
330assert a claim or chose in action of the estate, the claim shall
331not be subject to, and any remedy shall not be limited by, any
332defense based on the assignor's acquiescence, cooperation, or
333participation in the wrongful act by the defendant which forms
334the basis of such claim or chose in action.;
335     (2)  Within 30 days after the filing date, examine the
336assignor, under oath, concerning the acts, conduct, assets,
337liabilities, and financial condition of the assignor or any
338matter related to the assignee's administration of the estate,
339unless excused by the court for good cause shown.;
340     (3)  Give notice to creditors of all matters concerning the
341administration of the estate, pursuant to the provisions of s.
342727.111.;
343     (4)  Conduct the business of the assignor for a limited
344period not to exceed 14 calendar days if in the best interest of
345the estate, or for a longer period periods, if in the best
346interest of the estate, upon notice and until such time as an
347objection, if any, is sustained by the court, provided that the
348assignee shall not operate the business of the assignor for a
349period of longer than 45 calendar days without a court order
350authorizing such operation if an objection by a party in
351interest is interposed to the assignee's motion for authority to
352operate the assignor's business. authorization of the court;
353     (5)  To the extent reasonable in the exercise of the
354assignee's business judgment, reject an unexpired lease of
355nonresidential real property or of personal property under which
356the assignor is the lessee.
357     (6)(5)  To the extent reasonable and necessary, pay
358administrative expenses of the estate, subject, however, to s.
359727.114(1)(a).;
360     (7)(6)  To the extent necessary, employ at the expense of
361the estate one or more appraisers, auctioneers, accountants,
362attorneys, or other professional persons, to assist the assignee
363in carrying out his or her duties under this chapter.;
364     (8)(7)  Keep regular accounts and furnish such information
365concerning the estate as may be reasonably requested by
366creditors or other parties in interest.;
367     (9)(8)  File with the court an interim report of receipts
368and disbursements within 6 months after the filing date unless
369excused by the court or unless the estate has been sooner
370distributed in full.;
371     (10)(9)  Examine the validity and priority of all claims
372against the estate.;
373     (11)(10)  Abandon assets to duly perfected secured or lien
374creditors, where, after due investigation, he or she determines
375that the estate has no equity in such assets or such assets are
376burdensome to the estate or are of inconsequential value and
377benefit to the estate.;
378     (12)(11)  Pay dividends and secured or priority claims as
379often as is compatible with the best interests of the estate and
380close the estate as expeditiously as possible.; and
381     (13)(12)  File with the court a final report of all
382receipts and disbursements and file an application for his or
383her discharge pursuant to the provisions of s. 727.116.
384     Section 6.  Section 727.109, Florida Statutes, is amended
385to read:
386     727.109  Power of the court.--The court shall have power
387to:
388     (1)  Enforce all provisions of this chapter.;
389     (2)  Set, approve, or reconsider the amount of the
390assignee's bond.;
391     (3)  Upon notice, and hearing if requested, authorize the
392business of the assignor to be conducted for limited periods by
393the assignee for a period longer than 14 calendar days, if in
394the best interest of the estate.;
395     (4)  Allow or disallow claims against the estate and
396determine their priority and establish a deadline, upon motion
397by the assignee, for the filing of all claims against the
398assignment estate arising from and after the date on which the
399assignor's petition for assignment was filed with the court,
400which deadline shall occur not less than 30 days prior to notice
401by mail of the order establishing such deadline.;
402     (5)  Determine any claims of exemption by the assignor, if
403disputed.;
404     (6)  Authorize the assignee to reject an unexpired lease of
405nonresidential real property or of personal property under which
406the assignor is the lessee pursuant to s. 727.108(5).
407     (7)  Upon notice as provided pursuant to s. 727.111 to all
408creditors and consensual lienholders, hear and determine a
409motion made by the assignee for approval of a proposed sale of
410assets of the estate other than in the ordinary course of
411business, or the compromise or settlement of a controversy, and
412enter an order granting such motion notwithstanding the lack of
413objection to such motion if the assignee reasonably believes
414that such order is necessary to proceed with the action
415contemplated by the motion.
416     (8)(6)  Hear and determine any of the following actions
417brought by the assignee, which she or he is hereby empowered to
418maintain:
419     (a)  Enforce the turnover of assets of the estate pursuant
420to s. 727.106.;
421     (b)  Determine the validity, priority, and extent of a lien
422or other interests in assets of the estate, or to subordinate or
423avoid an unperfected security interest pursuant to the
424assignee's rights as a lien creditor under s. 679.301.;
425     (c)  Avoid any conveyance or transfer void or voidable by
426law.;
427     (9)(7)  Approve the assignee's final report and interim and
428final distributions to creditors.;
429     (10)(8)  Approve reasonable fees and the reimbursement of
430expenses for the assignee and all professional persons retained
431by the assignee, upon objection of a party in interest or upon
432the court's own motion.;
433     (11)(9)  Hear and determine any motion brought by a party
434in interest or by the court to close the estate after the
435passage of 1 year from the date of filing of the petition.;
436     (12)(10)  Discharge the assignee and the assignee's surety
437from liability upon matters included in the assignee's final
438report.;
439     (13)(11)  Reopen estates for cause shown.;
440     (14)(12)  Punish by contempt any failure to comply with the
441provisions of this chapter or any order of the court made
442pursuant to this chapter.; and
443     (15)(13)  Exercise such other and further powers as are
444necessary to enforce or carry out the provisions of this
445chapter.
446     Section 7.  Subsection (1) of section 727.110, Florida
447Statutes, is amended to read:
448     727.110  Actions by assignee and other parties in
449interest.--
450     (1)  All matters requiring court authorization under this
451chapter shall be brought by motion, except for the following
452matters, which shall be brought by supplemental proceeding, as
453provided in subsection (2):
454     (a)  An action by the assignee to recover money or other
455assets of the estate;
456     (b)  An action by the assignee to determine the validity,
457priority, or extent of a lien or other interest in property or
458to subordinate or avoid an unperfected security interest under
459s. 727.109(8)(6)(b); and
460     (c)  An action by the assignee to avoid any conveyance or
461transfer void or voidable by law under s. 727.109(8)(6)(c).
462     Section 8.  Subsections (4) and (8) of section 727.111,
463Florida Statutes, are amended to read:
464     727.111  Notice.--
465     (4)  The assignee shall give the assignor and all creditors
466not less than 20 days' notice by mail of a proposed sale of
467assets of the estate other than in the ordinary course of
468business, the assignee's continued operation of the assignor's
469business for a period of longer than 14 calendar days, the
470compromise or settlement of a controversy, and the payment of
471fees and expenses to the assignee and to professional persons
472employed by the assignee pursuant to s. 727.108(7)(6). Any and
473all objections to the proposed action must be filed and served
474upon the assignee and the assignee's attorney, if any, not less
475than 3 days before the date of the proposed action. The notice
476shall include a description of the proposed action to be taken
477and the date of the proposed action, and shall set forth the
478date and place for the hearing at which any objections shall be
479heard. If no objections are timely filed and served, the
480assignee may take such action as described in the notice without
481further order of the court or may obtain an order of the court
482granting such motion if the assignee reasonably believes that
483such order is necessary to proceed with the action contemplated
484by the motion.
485     (8)  Wherever notice is required to be given under this
486chapter, a certificate of service of such notice shall be filed
487with the court and notice shall be given to all consensual
488lienholders and counsel that have filed a notice of appearance
489with the court or are identified in the assignor's schedules.
490     Section 9.  Subsections (6) and (7) are added to section
491727.112, Florida Statutes, to read:
492     727.112  Proof of claim.--
493     (6)  If a claim for damages results from the assignee's
494rejection of a lease of real property, such claim shall be
495limited to the sum of:
496     (a)  The rent reserved by such lease, without acceleration,
497for the greater of 1 year, or 15 percent of the remaining term
498of such lease, following the earlier of the date of assignment
499or the date on which such lessor repossessed or the lessee
500surrendered the leased property.
501     (b)  Any unpaid rent due under such lease, without
502acceleration, on the earlier of such dates.
503     (c)  Reasonable attorney's fees and costs incurred by the
504lessor in connection with such lease.
505     (d)  The lessor's reasonable costs incurred in reletting
506the premises previously leased by the assignor.
507     (7)  If a claim for damages results from the termination of
508an employment contract, such claim shall be limited to the sum
509of:
510     (a)  The compensation provided by such contract, without
511acceleration, for 1 year following the earlier of the date of
512assignment or the date on which the assignor or assignee, as
513applicable, directed the employee to terminate, or such employee
514terminated, performance under such contract.
515     (b)  Any unpaid compensation due under such contract,
516without acceleration, on the earlier of such dates.
517     Section 10.  Section 727.113, Florida Statutes, is amended
518to read:
519     727.113  Objections to claims.--
520     (1)  At any time prior to the entry of an order approving
521the assignee's final report, the assignee or any party in
522interest, including another creditor of the assignor, may file
523with the court an objection to a claim, which objection shall be
524in writing and shall set forth the nature of the objection. A
525copy of the objection, together with notice of hearing thereon,
526shall be mailed to the creditor at least 20 days prior to the
527hearing. All claims properly filed with the assignee and not
528disallowed by the court shall constitute all claims entitled to
529distribution from the estate.
530     (2)  Following expiration of the claims bar date, the
531assignee shall create a register of all creditors that have
532filed claims against the assignor's estate and shall make such
533register available upon request to any creditor or other party
534in interest.
535     (3)  The assignee, as well as any creditor or any party in
536interest, shall have standing to challenge the validity, extent,
537or priority of any claim filed by a creditor against the
538assignor's estate.
539     (4)  A creditor whose claim is secured by a lien against
540property of the estate shall have 60 days following the sale or
541disposition of the property securing his or her claim to file a
542claim for an unsecured deficiency, notwithstanding the passage
543of the claims bar date. Notwithstanding the 60-day time period,
544if such a creditor fails to file with the assignee a deficiency
545claim within 10 days after the filing and service by mail of the
546assignee's final report of all receipts and disbursements, such
547creditor's deficiency claim shall be disallowed as untimely and
548such creditor shall not be entitled to share in any distribution
549made to holders of unsecured claims pursuant to s. 727.114(1)(f)
550on account of such creditor's deficiency claim.
551     Section 11.  Section 727.114, Florida Statutes, is amended
552to read:
553     727.114  Priority of claims.--Allowed claims shall receive
554distribution under this chapter in the following order of
555priority and, with the exception of paragraph subsection (1)(a),
556on a pro rata basis:
557     (1)(a)  Creditors with liens on assets of the estate, which
558liens are duly perfected pursuant to applicable law, shall
559receive the proceeds from the disposition of their collateral,
560less the reasonable, necessary expenses of preserving or
561disposing of such collateral to the extent of any benefit to
562such creditors. If and to the extent that such proceeds are less
563than the amount of a creditor's claim or a creditor's lien is
564avoided pursuant to s. 727.109(8)(6)(c), such a creditor shall
565be deemed to be an unsecured creditor for such deficiency
566pursuant to paragraph (f) subsection (6) of this section.
567     (b)(2)  Expenses incurred during the administration of the
568estate, other than those expenses allowable under paragraph (a)
569subsection (1), including allowed fees and reimbursements of all
570expenses of the assignee and professional persons employed by
571the assignee under s. 727.108(6), and rent incurred by the
572assignee in occupying any premises in which the assets of the
573assignment estate are located or the business of the assignor is
574conducted, from and after the date of the assignment, through
575and until the earlier of the date on which the lease for such
576premises is rejected pursuant to an order of the court, or the
577date of termination of such lease pursuant to s. 727.108(6).
578     (c)(3)  Unsecured claims of governmental units for taxes
579which accrued within 3 years prior to the filing date.
580     (d)(4)  Claims for wages, salaries, or commissions,
581including vacation, severance, and sick leave pay, or
582contributions to an employee benefit plan earned by employees of
583the assignor individual within 180 90 days before of the filing
584date or the cessation of the assignor's business, whichever
585occurs 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
588assignor before the filing date of money in connection with the
589purchase, lease, or rental of property or the purchase of
590services for personal, family, or household use by such
591individuals that were not delivered or provided.
592     (f)(6)  Unsecured claims.
593     (2)  A subordination agreement is enforceable in a case
594arising under this chapter to the same extent that such
595agreement is enforceable under applicable law.
596     (3)  For the purpose of distribution under this chapter, a
597claim arising from rescission of a purchase or sale of a
598security of the assignor or of an affiliate of the assignor for
599damages arising from the purchase or sale of such a security, or
600for reimbursement or contribution allowed under this chapter on
601account of such a claim, shall be subordinated to all claims or
602interests that are senior to or equal to the claim or interest
603represented by such security, except if such security is common
604stock, such claim shall have the same priority as common stock.
605
606If all of the above classes have been paid in full, any residue
607shall be paid to the assignor.
608     Section 12.  This act shall take effect July 1, 2007.


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