CS/HB 1445

1	A bill to be entitled
2	An act relating to debts and debtors; amending s. 222.25,
3	F.S.; providing that a debtor's personal property of a
4	specified value is exempt from legal process if the debtor
5	does not receive a homestead exemption; providing a
6	limitation; amending s. 702.035, F.S.; clarifying that the
7	number of days for publishing a notice relating to a
8	foreclosure proceeding excludes legal holidays; amending
9	s. 727.103, F.S.; revising definitions; amending s.
10	727.104, F.S.; revising requirements for commencement of
11	proceedings; specifying forms for verification of
12	assignment and schedules by assignor and acceptance by
13	assignee; amending s. 727.105, F.S.; revising requirements
14	for proceedings against an assignee; amending s. 727.108,
15	F.S.; revising and expanding the duties of assignees;
16	amending s. 727.109, F.S.; revising and expanding powers
17	of a court in certain actions; amending s. 727.110, F.S.;
18	conforming cross-references; amending s. 727.111, F.S.;
19	revising requirements for notices of assignments; amending
20	s. 727.112, F.S.; providing limitations on certain claims
21	for damages; amending s. 727.113, F.S.; providing
22	additional requirements for filing objections to claims;
23	amending s. 727.114, F.S.; revising requirements and
24	criteria for priority of claims; providing for
25	enforceability of subordination agreements under certain
26	circumstances; providing for subordinating certain claims
27	for damages for rescission; providing an exception;
28	providing an effective date.
29
30	Be It Enacted by the Legislature of the State of Florida:
31
32	Section 1.  Section 222.25, Florida Statutes, is amended to
33	read:
34	222.25  Other individual property exempt from legal
35	process.--The following property of natural persons is exempt
36	from attachment, garnishment, or other legal process:
37	(1)  A debtor's interest, not to exceed $1,000 in value, in
38	a single motor vehicle as defined in s. 320.01.
39	(2)  A debtor's interest in any professionally prescribed
40	health aids for the debtor or a dependent of the debtor.
41	(3)  A debtor's interest in a refund or a credit received
42	or to be received, or the traceable deposits in a financial
43	institution of a debtor's interest in a refund or credit,
44	pursuant to s. 32 of the Internal Revenue Code of 1986, as
45	amended. This exemption does not apply to a debt owed for child
46	support or spousal support.
47	(4)  A debtor's interest in personal property, not to
48	exceed $4,000, if the debtor does not claim or receive the
49	benefits of a homestead exemption under s. 4, Art. X of the
50	State Constitution. This exemption does not apply to a debt owed
51	for child support or spousal support.
52	Section 2.  Section 702.035, Florida Statutes, is amended
53	to read:
54	702.035  Legal notice concerning foreclosure
55	proceedings.--Whenever a legal advertisement, publication, or
56	notice relating to a foreclosure proceeding is required to be
57	placed in a newspaper, it is the responsibility of the
58	petitioner or petitioner's attorney to place such advertisement,
59	publication, or notice. For counties with more than 1 million
60	total population as reflected in the most recent Official
61	Decennial Census of the United States Census Bureau as shown on
62	the official website of the United States Census Bureau, any
63	notice of publication required by this section shall be deemed
64	to have been published in accordance with the law if the notice
65	is published in a newspaper that has been entered as a
66	periodical matter at a post office in the county in which the
67	newspaper is published, is published a minimum of 5 days a week,
68	exclusive of legal holidays, and has been in existence and
69	published a minimum of 5 days a week, exclusive of legal
70	holidays, for 1 year or is a direct successor to a newspaper
71	that has been in existence for 1 year that has been published a
72	minimum of 5 days a week, exclusive of legal holidays. The
73	advertisement, publication, or notice shall be placed directly
74	by the attorney for the petitioner, by the petitioner if acting
75	pro se, or by the clerk of the court. Only the actual costs
76	charged by the newspaper for the advertisement, publication, or
77	notice may be charged as costs in the action.
78	Section 3.  Section 727.103, Florida Statutes, is amended
79	to read:
80	727.103  Definitions.--As used in this chapter, unless the
81	context requires a different meaning, the term:
82	(1)  "Asset" means a legal or equitable interest of the
83	assignor in property, which shall include anything that may be
84	the subject of ownership, whether real or personal, tangible or
85	intangible, including claims and causes of action, whether
86	arising by contract or in tort, wherever located and by whomever
87	held at the date of the assignment, except property exempt by
88	law from forced sale.
89	(2)  "Assignee" means a natural person solely in such
90	person's capacity as an assignee for the benefit of creditors
91	under the provisions of this chapter, which assignee shall not
92	be a creditor or an equity security holder or have any interest
93	adverse to the interest of the estate.
94	(3)  "Assignor" means the person or entity which has
95	executed and delivered the assignment to the assignee.
96	(4)  "Assignment" means an assignment for the benefit of
97	creditors made under this chapter.
98	(5)  "Claims bar date" means the date which is 120 days
99	after the date on which the petition is filed with the court.
100	(6)  "Consensual lienholder" means a creditor that has been
101	granted a security interest or lien in personal property or real
102	property of the assignor prior to the date on which a petition
103	is filed with the court and whose security interest or lien has
104	been perfected in accordance with applicable law.
105	(7)(5)  "Court" means the circuit court where the petition
106	is filed in accordance with s. 727.104(2).
107	(8)(6)  "Creditor" means any person having a claim against
108	the assignor, whether such claim is contingent, liquidated,
109	unliquidated, or disputed.
110	(9)(7)  "Estate" means all of the assets of the assignor.
111	(10)(8)  "Filing date" means the date upon which the
112	original petition is filed in accordance with s. 727.104(2).
113	(11)(9)  "Lien" means a charge against or an interest in
114	property to secure payment of a debt or performance of an
115	obligation, and includes a security interest created by
116	agreement, a judicial lien obtained by legal or equitable
117	process or proceedings, a common-law lien, or a statutory lien.
118	(12)(10)  "Liquidation value" means the value in cash
119	obtainable upon a forced sale of assets after payment of valid
120	liens encumbering said assets.
121	(13)(11)  "Petition" means the initial document filed with
122	the court, as set forth in s. 727.104(2), establishing the
123	court's jurisdiction under this chapter.
124	Section 4.  Subsection (1) of section 727.104, Florida
125	Statutes, is amended to read:
126	727.104  Commencement of proceedings.--
127	(1)(a)  An irrevocable assignment and schedules shall be
128	made in writing, containing the name and address of the assignor
129	and assignee and providing for an equal distribution of the
130	estate according to the priorities set forth in s. 727.114.
131	(b)  The assignment shall be in substantially the following
132	form:
133
134	ASSIGNMENT
135
136	ASSIGNMENT, made this _____ day of _____,   (year)  , between
137	_____, with a principal place of business at _____, hereinafter
138	"assignor," and _____, whose address is _____, hereinafter
139	"assignee."
140	WHEREAS, the assignor has been engaged in the business of
141	__________;
142	WHEREAS, the assignor is indebted to creditors, as set
143	forth in Schedule A annexed hereto, is unable to pay its debts
144	as they become due, and is desirous of providing for the payment
145	of its debts, so far as it is possible by an assignment of all
146	of its assets for that purpose.
147	NOW, THEREFORE, the assignor, in consideration of the
148	assignee's acceptance of this assignment, and for other good and
149	valuable consideration, hereby grants, assigns, conveys,
150	transfers, and sets over, unto the assignee, her or his
151	successors and assigns, all of its assets, except such assets as
152	are exempt by law from levy and sale under an execution,
153	including, but not limited to, all real property, fixtures,
154	goods, stock, inventory, equipment, furniture, furnishings,
155	accounts receivable, bank deposits, cash, promissory notes, cash
156	value and proceeds of insurance policies, claims and demands
157	belonging to the assignor, and all books, records, and
158	electronic data pertaining to all such assets, wherever such
159	assets may be located, hereinafter the "estate," as which assets
160	are, to the best knowledge and belief of the assignor, set forth
161	on Schedule B annexed hereto.
162	The assignee shall take possession of and protect and
163	preserve all such assets and administer the estate in accordance
164	with the provisions of chapter 727, Florida Statutes, and shall
165	liquidate the assets of the estate with reasonable dispatch and
166	convert the estate into money, collect all claims and demands
167	hereby assigned as may be collectible, and pay and discharge all
168	reasonable expenses, costs, and disbursements in connection with
169	the execution and administration of this assignment from the
170	proceeds of such liquidations and collections.
171	The assignee shall then pay and discharge in full, to the
172	extent that funds are available in the estate after payment of
173	administrative expenses, costs, and disbursements, all of the
174	debts and liabilities now due from the assignor, including
175	interest on such debts and liabilities. If funds of the estate
176	shall not be sufficient to pay such debts and liabilities in
177	full, then the assignee shall pay from funds of the estate such
178	debts and liabilities, on a pro rata basis and in proportion to
179	their priority as set forth in s. 727.114, Florida Statutes.
180	In the event that all debts and liabilities are paid in
181	full, any funds of the estate remaining shall be returned to the
182	assignor.
183	To accomplish the purposes of this assignment, the assignor
184	hereby appoints the assignee its true and lawful attorney,
185	irrevocable, with full power and authority to do all acts and
186	things which may be necessary to execute the assignment hereby
187	created; to demand and recover from all persons all assets of
188	the estate; to sue for the recovery of such assets; to execute,
189	acknowledge, and deliver all necessary deeds, instruments, and
190	conveyances; and to appoint one or more attorneys under her or
191	him to assist the assignee in carrying out her or his duties
192	hereunder.
193	The assignor hereby authorizes the assignee to sign the
194	name of the assignor to any check, draft, promissory note, or
195	other instrument in writing which is payable to the order of the
196	assignor, or to sign the name of the assignor to any instrument
197	in writing, whenever it shall be necessary to do so, to carry
198	out the purpose of this assignment.
199	The assignee hereby accepts the trust created by the
200	assignment, and agrees with the assignor that the assignee will
201	faithfully and without delay carry out her or his duties under
202	the assignment.
	__________Assignor
203
	__________Assignee
204
	STATE OF FLORIDACOUNTY OF __________
205
	STATE OF FLORIDACOUNTY OF __________
206
207	The foregoing assignment was acknowledged before me this
208	_____ day of _____,   (year)  , by _____, as assignor, and by
209	_____, as assignee, for the purposes therein expressed.
210
211	(Signature of Notary Public - State of Florida)
212	(Print, Type, or Stamp Commissioned Name of Notary Public)
213
214	Personally Known _____ OR Produced Identification _____
215
216	Type of Identification Produced_______________
217	(c)  The assignment shall have annexed thereto as Schedule
218	A a true list of all of the assignor's known creditors, their
219	mailing addresses, the amount and nature of their claims, and
220	whether their claims are disputed; and as Schedule B a true list
221	of all assets of the estate, including the estimated liquidation
222	value of the assets, their location, and, if real property, a
223	legal description thereof, as of the date of the assignment.
224	(d)  The schedules shall be in substantially the following
225	forms:
226
	SCHEDULE A--CREDITOR LIST
227
	1.  List all secured creditors showing:
228
	Name Address Amount Collateral Whether or not disputed
229
	2.  List all wages owed showing:
230
	Name Address Amount Whether or not disputed
231
	3.  Consumer deposits:
232
	Name Address Amount Whether or not disputed
233
	4.  List all taxes owed showing:
234
	Name Address Amount Whether or not disputed
235
	5.  List all unsecured claims showing:
236
	Name Address Amount Whether or not disputed
237
	6.  List all owners or shareholders showing:
238
	Name Address Amount Whether or not disputed
239
	7.  List all pending litigation and opposing counsel of record
240
	Style Parties Opposing Counsel of Record
241
242
243	SCHEDULE B--LIST OF ASSETS
244
245	List each category of assets and for each give approximate value
246	obtainable for the asset on the date of assignment, and address
247	where asset is located.
248
249	I.  Nonexempt Property
250
	Description and Location Liquidation Value at Date of Assignment
251
252	1.  Legal description and street address of real estate,
253	including leasehold interests:
254	2.  Fixtures:
255	3.  Cash and bank accounts:
256	4.  Inventory:
257	5.  Accounts receivable:
258	6.  Equipment:
259	7.  Prepaid expenses, including deposits, insurance, rents, and
260	utilities:
261	8.  Other, including loans to third parties, claims, and choses
262	in action:
263
264	II.  Exempt Property
265
	Description and Location Liquidation Value at Date of Assignment
266
267	(e)  The assignment and schedules shall be duly verified
268	upon oath by the assignor, and accepted by the assignee under
269	oath, in substantially the following form:.
270
271	VERIFICATION OF ASSIGNMENT
272	AND SCHEDULES BY ASSIGNOR
273
274	The undersigned, [Name], [Position with Assignor] of
275	[Assignor], hereby verifies the Assignment (the "Assignment") of
276	all of its rights, title and interest in and to all of its
277	assets, as indicated on the attached Schedules to that certain
278	Assignment as filed with this Court on ____________, and further
279	verifies each of the facts set forth in the Schedules annexed to
280	the Assignment to the best of my knowledge and belief.
281
282	_________________________________________________________
283	_________________________[Name], [Position with Assignor]
284
285
286	STATE OF FLORIDA__________)
287	__________________________) SS:
288	COUNTY OF [_____________]_)
289
290
291	Sworn to and subscribed before me this ____ day of ________.
292	___________________________________
293	NOTARY PUBLIC,
294	STATE OF FLORIDA AT LARGE
295
296	Print Name:________________________
297	Commission No:_____________________
298	Commission Expires:________________
299
300	Personally known__________________________________
301	or Produced Identification________________________
302	Type of Identification Produced___________________
303
304
305	ACCEPTANCE BY ASSIGNEE
306
307	The undersigned, [Assignee], the Assignee herein, duly
308	acknowledges that the Assignee accepts delivery of the within
309	Assignment and that he or she will duly perform the duties
310	imposed upon the Assignee pursuant to Florida Statutes, Chapter
311	727.
312
313
314	________________________________
315	[Assignee]
316
317	STATE OF FLORIDA__________)
318	__________________________) SS:
319	COUNTY OF [_____________]_)
320
321
322	Sworn to and subscribed before me this _____ day of _______.
323
324
325	___________________________________
326	NOTARY PUBLIC,
327	STATE OF FLORIDA AT LARGE
328
329	Print Name:________________________
330	Commission No:_____________________
331	Commission Expires:________________
332
333	Personally known_____________________________
334	or Produced Identification___________________
335	Type of Identification Produced______________
336
337	Section 5.  Section 727.105, Florida Statutes, is amended
338	to read:
339	727.105  Proceedings against assignee.--No proceeding may
340	be commenced against the assignee except as provided in this
341	chapter, but nothing contained herein shall affect any action or
342	proceeding by a governmental unit to enforce such governmental
343	unit's police or regulatory power. Except in the case of a
344	consensual lienholder secured creditor enforcing its rights in
345	personal property or real property collateral under chapter 679,
346	there shall be no levy, execution, attachment, or the like in
347	respect of any judgment against assets of the estate, other than
348	real property, in the possession, custody, or control of the
349	assignee.
350	Section 6.  Section 727.108, Florida Statutes, is amended
351	to read:
352	727.108  Duties of assignee.--The assignee shall:
353	(1)  Collect and reduce to money the assets of the estate,
354	whether by suit in any court of competent jurisdiction or by
355	public or private sale, including, but not limited to,
356	prosecuting any tort claims or causes of action that were
357	previously held by the assignor, regardless of any generally
358	applicable law concerning the nonassignability of tort claims or
359	causes of action.
360	(a)  In respect of the estate's claims and causes of
361	action, the assignee may prosecute such claims or causes of
362	action as provided in this subsection or sell and assign, in
363	whole or in part, such claims or causes of action to another
364	person or entity on such terms as the assignee determines are in
365	the best interest of the estate pursuant to s. 727.111(4).
366	(b)  In an action in any court by the assignee, or the
367	first immediate transferee of the assignee, other than an
368	affiliate or insider of the assignor, against any defendant to
369	assert a claim or chose in action of the estate, the claim shall
370	not be subject to, and any remedy shall not be limited by, any
371	defense based on the assignor's acquiescence, cooperation, or
372	participation in the wrongful act by the defendant which forms
373	the basis of such claim or chose in action.;
374	(2)  Within 30 days after the filing date, examine the
375	assignor, under oath, concerning the acts, conduct, assets,
376	liabilities, and financial condition of the assignor or any
377	matter related to the assignee's administration of the estate,
378	unless excused by the court for good cause shown.;
379	(3)  Give notice to creditors of all matters concerning the
380	administration of the estate, pursuant to the provisions of s.
381	727.111.;
382	(4)  Conduct the business of the assignor for a limited
383	period not to exceed 14 calendar days if in the best interest of
384	the estate, or for a longer period periods, if in the best
385	interest of the estate, upon notice and until such time as an
386	objection, if any, is sustained by the court, provided that the
387	assignee shall not operate the business of the assignor for a
388	period of longer than 45 calendar days without a court order
389	authorizing such operation if an objection by a party in
390	interest is interposed to the assignee's motion for authority to
391	operate the assignor's business. authorization of the court;
392	(5)  To the extent reasonable in the exercise of the
393	assignee's business judgment, reject an unexpired lease of
394	nonresidential real property or of personal property under which
395	the assignor is the lessee.
396	(6)(5)  To the extent reasonable and necessary, pay
397	administrative expenses of the estate, subject, however, to s.
398	727.114(1)(a).;
399	(7)(6)  To the extent necessary, employ at the expense of
400	the estate one or more appraisers, auctioneers, accountants,
401	attorneys, or other professional persons, to assist the assignee
402	in carrying out his or her duties under this chapter.;
403	(8)(7)  Keep regular accounts and furnish such information
404	concerning the estate as may be reasonably requested by
405	creditors or other parties in interest.;
406	(9)(8)  File with the court an interim report of receipts
407	and disbursements within 6 months after the filing date unless
408	excused by the court or unless the estate has been sooner
409	distributed in full.;
410	(10)(9)  Examine the validity and priority of all claims
411	against the estate.;
412	(11)(10)  Abandon assets to duly perfected secured or lien
413	creditors, where, after due investigation, he or she determines
414	that the estate has no equity in such assets or such assets are
415	burdensome to the estate or are of inconsequential value and
416	benefit to the estate.;
417	(12)(11)  Pay dividends and secured or priority claims as
418	often as is compatible with the best interests of the estate and
419	close the estate as expeditiously as possible.; and
420	(13)(12)  File with the court a final report of all
421	receipts and disbursements and file an application for his or
422	her discharge pursuant to the provisions of s. 727.116.
423	Section 7.  Section 727.109, Florida Statutes, is amended
424	to read:
425	727.109  Power of the court.--The court shall have power
426	to:
427	(1)  Enforce all provisions of this chapter.;
428	(2)  Set, approve, or reconsider the amount of the
429	assignee's bond.;
430	(3)  Upon notice, and hearing if requested, authorize the
431	business of the assignor to be conducted for limited periods by
432	the assignee for a period longer than 14 calendar days, if in
433	the best interest of the estate.;
434	(4)  Allow or disallow claims against the estate and
435	determine their priority and establish a deadline, upon motion
436	by the assignee, for the filing of all claims against the
437	assignment estate arising from and after the date on which the
438	assignor's petition for assignment was filed with the court,
439	which deadline shall occur not less than 30 days prior to notice
440	by mail of the order establishing such deadline.;
441	(5)  Determine any claims of exemption by the assignor, if
442	disputed.;
443	(6)  Authorize the assignee to reject an unexpired lease of
444	nonresidential real property or of personal property under which
445	the assignor is the lessee pursuant to s. 727.108(5).
446	(7)  Upon notice as provided pursuant to s. 727.111 to all
447	creditors and consensual lienholders, hear and determine a
448	motion made by the assignee for approval of a proposed sale of
449	assets of the estate other than in the ordinary course of
450	business, or the compromise or settlement of a controversy, and
451	enter an order granting such motion notwithstanding the lack of
452	objection to such motion if the assignee reasonably believes
453	that such order is necessary to proceed with the action
454	contemplated by the motion.
455	(8)(6)  Hear and determine any of the following actions
456	brought by the assignee, which she or he is hereby empowered to
457	maintain:
458	(a)  Enforce the turnover of assets of the estate pursuant
459	to s. 727.106.;
460	(b)  Determine the validity, priority, and extent of a lien
461	or other interests in assets of the estate, or to subordinate or
462	avoid an unperfected security interest pursuant to the
463	assignee's rights as a lien creditor under s. 679.301.;
464	(c)  Avoid any conveyance or transfer void or voidable by
465	law.;
466	(9)(7)  Approve the assignee's final report and interim and
467	final distributions to creditors.;
468	(10)(8)  Approve reasonable fees and the reimbursement of
469	expenses for the assignee and all professional persons retained
470	by the assignee, upon objection of a party in interest or upon
471	the court's own motion.;
472	(11)(9)  Hear and determine any motion brought by a party
473	in interest or by the court to close the estate after the
474	passage of 1 year from the date of filing of the petition.;
475	(12)(10)  Discharge the assignee and the assignee's surety
476	from liability upon matters included in the assignee's final
477	report.;
478	(13)(11)  Reopen estates for cause shown.;
479	(14)(12)  Punish by contempt any failure to comply with the
480	provisions of this chapter or any order of the court made
481	pursuant to this chapter.; and
482	(15)(13)  Exercise such other and further powers as are
483	necessary to enforce or carry out the provisions of this
484	chapter.
485	Section 8.  Subsection (1) of section 727.110, Florida
486	Statutes, is amended to read:
487	727.110  Actions by assignee and other parties in
488	interest.--
489	(1)  All matters requiring court authorization under this
490	chapter shall be brought by motion, except for the following
491	matters, which shall be brought by supplemental proceeding, as
492	provided in subsection (2):
493	(a)  An action by the assignee to recover money or other
494	assets of the estate;
495	(b)  An action by the assignee to determine the validity,
496	priority, or extent of a lien or other interest in property or
497	to subordinate or avoid an unperfected security interest under
498	s. 727.109(8)(6)(b); and
499	(c)  An action by the assignee to avoid any conveyance or
500	transfer void or voidable by law under s. 727.109(8)(6)(c).
501	Section 9.  Subsections (4) and (8) of section 727.111,
502	Florida Statutes, are amended to read:
503	727.111  Notice.--
504	(4)  The assignee shall give the assignor and all creditors
505	not less than 20 days' notice by mail of a proposed sale of
506	assets of the estate other than in the ordinary course of
507	business, the assignee's continued operation of the assignor's
508	business for a period of longer than 14 calendar days, the
509	compromise or settlement of a controversy, and the payment of
510	fees and expenses to the assignee and to professional persons
511	employed by the assignee pursuant to s. 727.108(7)(6). Any and
512	all objections to the proposed action must be filed and served
513	upon the assignee and the assignee's attorney, if any, not less
514	than 3 days before the date of the proposed action. The notice
515	shall include a description of the proposed action to be taken
516	and the date of the proposed action, and shall set forth the
517	date and place for the hearing at which any objections shall be
518	heard. If no objections are timely filed and served, the
519	assignee may take such action as described in the notice without
520	further order of the court or may obtain an order of the court
521	granting such motion if the assignee reasonably believes that
522	such order is necessary to proceed with the action contemplated
523	by the motion.
524	(8)  Wherever notice is required to be given under this
525	chapter, a certificate of service of such notice shall be filed
526	with the court and notice shall be given to all consensual
527	lienholders and counsel that have filed a notice of appearance
528	with the court or are identified in the assignor's schedules.
529	Section 10.  Subsections (6) and (7) are added to section
530	727.112, Florida Statutes, to read:
531	727.112  Proof of claim.--
532	(6)  If a claim for damages results from the assignee's
533	rejection of a lease of real property, such claim shall be
534	limited to the sum of:
535	(a)  The rent reserved by such lease, without acceleration,
536	for the greater of 1 year, or 15 percent of the remaining term
537	of such lease, following the earlier of the date of assignment
538	or the date on which such lessor repossessed or the lessee
539	surrendered the leased property.
540	(b)  Any unpaid rent due under such lease, without
541	acceleration, on the earlier of such dates.
542	(c)  Reasonable attorney's fees and costs incurred by the
543	lessor in connection with such lease.
544	(d)  The lessor's reasonable costs incurred in reletting
545	the premises previously leased by the assignor.
546	(7)  If a claim for damages results from the termination of
547	an employment contract, such claim shall be limited to the sum
548	of:
549	(a)  The compensation provided by such contract, without
550	acceleration, for 1 year following the earlier of the date of
551	assignment or the date on which the assignor or assignee, as
552	applicable, directed the employee to terminate, or such employee
553	terminated, performance under such contract.
554	(b)  Any unpaid compensation due under such contract,
555	without acceleration, on the earlier of such dates.
556	Section 11.  Section 727.113, Florida Statutes, is amended
557	to read:
558	727.113  Objections to claims.--
559	(1)  At any time prior to the entry of an order approving
560	the assignee's final report, the assignee or any party in
561	interest, including another creditor of the assignor, may file
562	with the court an objection to a claim, which objection shall be
563	in writing and shall set forth the nature of the objection. A
564	copy of the objection, together with notice of hearing thereon,
565	shall be mailed to the creditor at least 20 days prior to the
566	hearing. All claims properly filed with the assignee and not
567	disallowed by the court shall constitute all claims entitled to
568	distribution from the estate.
569	(2)  Following expiration of the claims bar date, the
570	assignee shall create a register of all creditors that have
571	filed claims against the assignor's estate and shall make such
572	register available upon request to any creditor or other party
573	in interest.
574	(3)  The assignee, as well as any creditor or any party in
575	interest, shall have standing to challenge the validity, extent,
576	or priority of any claim filed by a creditor against the
577	assignor's estate.
578	(4)  A creditor whose claim is secured by a lien against
579	property of the estate shall have 60 days following the sale or
580	disposition of the property securing his or her claim to file a
581	claim for an unsecured deficiency, notwithstanding the passage
582	of the claims bar date. Notwithstanding the 60-day time period,
583	if such a creditor fails to file with the assignee a deficiency
584	claim within 10 days after the filing and service by mail of the
585	assignee's final report of all receipts and disbursements, such
586	creditor's deficiency claim shall be disallowed as untimely and
587	such creditor shall not be entitled to share in any distribution
588	made to holders of unsecured claims pursuant to s. 727.114(1)(f)
589	on account of such creditor's deficiency claim.
590	Section 12.  Section 727.114, Florida Statutes, is amended
591	to read:
592	727.114  Priority of claims.--Allowed claims shall receive
593	distribution under this chapter in the following order of
594	priority and, with the exception of paragraph subsection (1)(a),
595	on a pro rata basis:
596	(1)(a)  Creditors with liens on assets of the estate, which
597	liens are duly perfected pursuant to applicable law, shall
598	receive the proceeds from the disposition of their collateral,
599	less the reasonable, necessary expenses of preserving or
600	disposing of such collateral to the extent of any benefit to
601	such creditors. If and to the extent that such proceeds are less
602	than the amount of a creditor's claim or a creditor's lien is
603	avoided pursuant to s. 727.109(8)(6)(c), such a creditor shall
604	be deemed to be an unsecured creditor for such deficiency
605	pursuant to paragraph (f) subsection (6) of this section.
606	(b)(2)  Expenses incurred during the administration of the
607	estate, other than those expenses allowable under paragraph (a)
608	subsection (1), including allowed fees and reimbursements of all
609	expenses of the assignee and professional persons employed by
610	the assignee under s. 727.108(6), and rent incurred by the
611	assignee in occupying any premises in which the assets of the
612	assignment estate are located or the business of the assignor is
613	conducted, from and after the date of the assignment, through
614	and until the earlier of the date on which the lease for such
615	premises is rejected pursuant to an order of the court, or the
616	date of termination of such lease pursuant to s. 727.108(6).
617	(c)(3)  Unsecured claims of governmental units for taxes
618	which accrued within 3 years prior to the filing date.
619	(d)(4)  Claims for wages, salaries, or commissions,
620	including vacation, severance, and sick leave pay, or
621	contributions to an employee benefit plan earned by employees of
622	the assignor individual within 180 90 days before of the filing
623	date or the cessation of the assignor's business, whichever
624	occurs first, but only to the extent of $10,000 per individual
625	employee $2,000.
626	(e)(5)  Allowed unsecured claims, to the extent of $2,225
627	$900 for each individual, arising from the deposit with the
628	assignor before the filing date of money in connection with the
629	purchase, lease, or rental of property or the purchase of
630	services for personal, family, or household use by such
631	individuals that were not delivered or provided.
632	(f)(6)  Unsecured claims.
633	(2)  A subordination agreement is enforceable in a case
634	arising under this chapter to the same extent that such
635	agreement is enforceable under applicable law.
636	(3)  For the purpose of distribution under this chapter, a
637	claim arising from rescission of a purchase or sale of a
638	security of the assignor or of an affiliate of the assignor for
639	damages arising from the purchase or sale of such a security, or
640	for reimbursement or contribution allowed under this chapter on
641	account of such a claim, shall be subordinated to all claims or
642	interests that are senior to or equal to the claim or interest
643	represented by such security, except if such security is common
644	stock, such claim shall have the same priority as common stock.
645
646	If all of the above classes have been paid in full, any residue
647	shall be paid to the assignor.
648	Section 13.  This act shall take effect July 1, 2007.

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