Senate Bill sb2118er

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  1                                 

  2         An act relating to debts and debtors; amending

  3         s. 222.25, F.S.; providing that personal

  4         property of a specified value is exempt from

  5         legal process if the debtor does not receive a

  6         homestead exemption; providing limitations;

  7         amending s. 702.035, F.S.; permitting

  8         foreclosure notices to be published in certain

  9         newspapers that publish at least 5 days a week

10         except during legal holidays; amending s.

11         727.103, F.S.; redefining the terms "asset" and

12         "assignee"; defining the term "claims bar

13         date"; defining the term "consensual

14         lienholder"; amending s. 727.104, F.S.;

15         revising the assignment and schedule forms;

16         providing forms for verification and acceptance

17         under oath for assignments and schedules;

18         amending s. 727.105, F.S.; authorizing a

19         consensual lienholder only to enforce a

20         security interest against the assets of an

21         estate; amending s. 727.108, F.S.; revising and

22         providing additional duties for the assignee;

23         amending s. 727.109, F.S.; providing additional

24         powers of the court; amending s. 727.110, F.S.;

25         conforming cross-references; amending s.

26         727.111, F.S.; requiring the assignee to give

27         notice of the assignee's continued operation of

28         the assignor's business; authorizing the

29         assignee to take action as described in the

30         notice by order of the court; requiring that

31         notice be given to all consensual lienholders


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 1         and counsel; amending s. 727.112, F.S.;

 2         providing limitations on a claim for damages;

 3         amending s. 727.113, F.S.; authorizing a

 4         creditor of the assignor to file an objection

 5         to a claim; requiring an assignee to create a

 6         claims register; providing that an assignee or

 7         any creditor has standing to challenge any

 8         claim by another creditor; authorizing certain

 9         creditors to file a claim for an unsecured

10         deficiency within a certain time; amending s.

11         727.114, F.S.; providing that certain creditors

12         are unsecured creditors for purpose of priority

13         of distribution; revising the type and amount

14         of claims receiving a priority distribution;

15         providing that a subordination agreement is

16         enforceable; providing that certain claims are

17         subordinate to other claims; providing an

18         exception for a claim for common stock;

19         providing an effective date.

20  

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

22  

23         Section 1.  Section 222.25, Florida Statutes, is

24  amended to read:

25         222.25  Other individual property of natural persons

26  exempt from legal process.--The following property is exempt

27  from attachment, garnishment, or other legal process:

28         (1)  A debtor's interest, not to exceed $1,000 in

29  value, in a single motor vehicle as defined in s. 320.01.

30  

31  


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 1         (2)  A debtor's interest in any professionally

 2  prescribed health aids for the debtor or a dependent of the

 3  debtor.

 4         (3)  A debtor's interest in a refund or a credit

 5  received or to be received, or the traceable deposits in a

 6  financial institution of a debtor's interest in a refund or

 7  credit, pursuant to s. 32 of the Internal Revenue Code of

 8  1986, as amended. This exemption does not apply to a debt owed

 9  for child support or spousal support.

10         (4)  A debtor's interest in personal property, not to

11  exceed $4,000, if the debtor does not claim or receive the

12  benefits of a homestead exemption under s. 4, Art. X of the

13  Florida Constitution. This exemption does not apply to a debt

14  owed for child support or spousal support.

15         Section 2.  Section 702.035, Florida Statutes, is

16  amended to read:

17         702.035  Legal notice concerning foreclosure

18  proceedings.--Whenever a legal advertisement, publication, or

19  notice relating to a foreclosure proceeding is required to be

20  placed in a newspaper, it is the responsibility of the

21  petitioner or petitioner's attorney to place such

22  advertisement, publication, or notice. For counties with more

23  than 1 million total population as reflected in the 2000 most

24  recent Official Decennial Census of the United States Census

25  Bureau as shown on the official website of the United States

26  Census Bureau, any notice of publication required by this

27  section shall be deemed to have been published in accordance

28  with the law if the notice is published in a newspaper that

29  has been entered as a periodical matter at a post office in

30  the county in which the newspaper is published, is published a

31  minimum of 5 days a week, exclusive of legal holidays, and has


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 1  been in existence and published a minimum of 5 days a week,

 2  exclusive of legal holidays, for 1 year or is a direct

 3  successor to a newspaper that has been in existence for 1 year

 4  that has been published a minimum of 5 days a week, exclusive

 5  of legal holidays. The advertisement, publication, or notice

 6  shall be placed directly by the attorney for the petitioner,

 7  by the petitioner if acting pro se, or by the clerk of the

 8  court. Only the actual costs charged by the newspaper for the

 9  advertisement, publication, or notice may be charged as costs

10  in the action.

11         Section 3.  Section 727.103, Florida Statutes, is

12  amended to read:

13         727.103  Definitions.--As used in this chapter, unless

14  the context requires a different meaning, the term:

15         (1)  "Asset" means a legal or equitable interest of the

16  assignor in property, which includes shall include anything

17  that may be the subject of ownership, whether real or

18  personal, tangible or intangible, including claims and causes

19  of action, whether arising by contract or in tort, wherever

20  located, and by whomever held at the date of the assignment,

21  except property exempt by law from forced sale.

22         (2)  "Assignee" means a natural person solely in such

23  person's capacity as an assignee for the benefit of creditors

24  under the provisions of this chapter, which assignee shall not

25  be a creditor or an equity security holder or have any

26  interest adverse to the interest of the estate.

27         (3)  "Assignor" means the person or entity that which

28  has executed and delivered the assignment to the assignee.

29         (4)  "Assignment" means an assignment for the benefit

30  of creditors made under this chapter.

31  


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 1         (5)  "Claims bar date" means the date that is 120 days

 2  after the date on which the petition is filed with the court.

 3         (6)  "Consensual lienholder" means a creditor that has

 4  been granted a security interest or lien in personal property

 5  or real property of the assignor prior to the date on which a

 6  petition is filed with the court and whose security interest

 7  or lien has been perfected in accordance with applicable law.

 8         (6)(5)  "Court" means the circuit court where the

 9  petition is filed in accordance with s. 727.104(2).

10         (7)(6)  "Creditor" means any person having a claim

11  against the assignor, whether such claim is contingent,

12  liquidated, unliquidated, or disputed.

13         (8)(7)  "Estate" means all of the assets of the

14  assignor.

15         (9)(8)  "Filing date" means the date upon which the

16  original petition is filed in accordance with s. 727.104(2).

17         (10)(9)  "Lien" means a charge against or an interest

18  in property to secure payment of a debt or performance of an

19  obligation, and includes a security interest created by

20  agreement, a judicial lien obtained by legal or equitable

21  process or proceedings, a common-law lien, or a statutory

22  lien.

23         (11)(10)  "Liquidation value" means the value in cash

24  obtainable upon a forced sale of assets after payment of valid

25  liens encumbering said assets.

26         (12)(11)  "Petition" means the initial document filed

27  with the court, as set forth in s. 727.104(2), establishing

28  the court's jurisdiction under this chapter.

29         Section 4.  Subsection (1) of section 727.104, Florida

30  Statutes, is amended to read:

31         727.104  Commencement of proceedings.--


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 1         (1)(a)  An irrevocable assignment and schedules shall

 2  be made in writing, containing the name and address of the

 3  assignor and assignee and providing for an equal distribution

 4  of the estate according to the priorities set forth in s.

 5  727.114.

 6         (b)  The assignment shall be in substantially the

 7  following form:

 8  

 9                            ASSIGNMENT

10  

11  ASSIGNMENT, made this .... day of ...., ...(year)..., between

12  ...., with a principal place of business at ...., hereinafter

13  "assignor," and ...., whose address is ...., hereinafter

14  "assignee."

15         WHEREAS, the assignor has been engaged in the business

16  of ........;

17         WHEREAS, the assignor is indebted to creditors, as set

18  forth in Schedule A annexed hereto, is unable to pay its debts

19  as they become due, and is desirous of providing for the

20  payment of its debts, so far as it is possible by an

21  assignment of all of its assets for that purpose.

22         NOW, THEREFORE, the assignor, in consideration of the

23  assignee's acceptance of this assignment, and for other good

24  and valuable consideration, hereby grants, assigns, conveys,

25  transfers, and sets over, unto the assignee, her or his

26  successors and assigns, all of its assets, except such assets

27  as are exempt by law from levy and sale under an execution,

28  including, but not limited to, all real property, fixtures,

29  goods, stock, inventory, equipment, furniture, furnishings,

30  accounts receivable, bank deposits, cash, promissory notes,

31  cash value and proceeds of insurance policies, claims and


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 1  demands belonging to the assignor, and all books, records, and

 2  electronic data pertaining to all such assets, wherever such

 3  assets may be located, hereinafter the "estate," as which

 4  assets are, to the best knowledge and belief of the assignor,

 5  set forth on Schedule B annexed hereto.

 6         The assignee shall take possession of, and protect and

 7  preserve, all such assets and administer the estate in

 8  accordance with the provisions of chapter 727, Florida

 9  Statutes, and shall liquidate the assets of the estate with

10  reasonable dispatch and convert the estate into money, collect

11  all claims and demands hereby assigned as may be collectible,

12  and pay and discharge all reasonable expenses, costs, and

13  disbursements in connection with the execution and

14  administration of this assignment from the proceeds of such

15  liquidations and collections.

16         The assignee shall then pay and discharge in full, to

17  the extent that funds are available in the estate after

18  payment of administrative expenses, costs, and disbursements,

19  all of the debts and liabilities now due from the assignor,

20  including interest on such debts and liabilities.  If funds of

21  the estate shall not be sufficient to pay such debts and

22  liabilities in full, then the assignee shall pay from funds of

23  the estate such debts and liabilities, on a pro rata basis and

24  in proportion to their priority as set forth in s. 727.114,

25  Florida Statutes.

26         If In the event that all debts and liabilities are paid

27  in full, any funds of the estate remaining shall be returned

28  to the assignor.

29         To accomplish the purposes of this assignment, the

30  assignor hereby appoints the assignee its true and lawful

31  attorney, irrevocable, with full power and authority to do all


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 1  acts and things which may be necessary to execute the

 2  assignment hereby created; to demand and recover from all

 3  persons all assets of the estate; to sue for the recovery of

 4  such assets; to execute, acknowledge, and deliver all

 5  necessary deeds, instruments, and conveyances; and to appoint

 6  one or more attorneys under her or him to assist the assignee

 7  in carrying out her or his duties hereunder.

 8         The assignor hereby authorizes the assignee to sign the

 9  name of the assignor to any check, draft, promissory note, or

10  other instrument in writing which is payable to the order of

11  the assignor, or to sign the name of the assignor to any

12  instrument in writing, whenever it shall be necessary to do

13  so, to carry out the purpose of this assignment.

14         The assignee hereby accepts the trust created by the

15  assignment, and agrees with the assignor that the assignee

16  will faithfully and without delay carry out her or his duties

17  under the assignment.

18  

19                                               ................

20                                                   Assignor

21                                                       

22                                               ................

23                                                   Assignee

24  

25  STATE OF FLORIDA

26  COUNTY OF ........

27  

28         The foregoing assignment was acknowledged before me

29  this .... day of ...., ...(year)..., by ...., as assignor, and

30  by ...., as assignee, for the purposes therein expressed.

31  


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 1           ...(Signature of Notary Public - State of Florida)...

 2           ...(Print, Type, or Stamp Commissioned Name of Notary

 3  Public)...

 4  

 5         Personally Known .... OR Produced Identification ....

 6  

 7         Type of Identification Produced............

 8  

 9  

10         (c)  The assignment shall have annexed thereto as

11  Schedule A a true list of all of the assignor's known

12  creditors, their mailing addresses, the amount and nature of

13  their claims, and whether their claims are disputed; and as

14  Schedule B a true list of all assets of the estate, including

15  the estimated liquidation value of the assets, their location,

16  and, if real property, a legal description thereof, as of the

17  date of the assignment.

18         (d)  The schedules shall be in substantially the

19  following forms:

20  

21                    SCHEDULE A--CREDITOR LIST

22  

23  1.  List all secured creditors showing:

24                                              Whether or

25  Name    Address     Amount   Collateral     not disputed

26  

27  2.  List all wages owed showing:

28                                              Whether or

29  Name    Address    Amount                   not disputed

30  

31  3.  Consumer deposits:


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 1                                              Whether or

 2  Name    Address    Amount                   not disputed

 3  

 4  4.  List all taxes owed showing:

 5                                              Whether or

 6  Name    Address    Amount                   not disputed

 7  

 8  5.  List all unsecured claims showing:

 9                                              Whether or

10  Name    Address    Amount                   not disputed

11  

12  6.  List all owners or shareholders showing:

13  

14  Name    Address              Percent of Ownership

15  

16  7.  List all pending litigation and opposing counsel of

17  record:

18  

19  Style   Parties              Opposing Counsel of Record

20  

21                    SCHEDULE B--LIST OF ASSETS

22  

23  List each category of assets and for each give approximate

24  value obtainable for the asset on the date of assignment, and

25  address where asset is located.

26  

27  I.  Nonexempt Property

28  

29    Description and                            Liquidation Value

30    Location                               at Date of Assignment

31  


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 1  1.  Legal description and street address of real estate,

 2  including leasehold interests:

 3  2.  Fixtures:

 4  3.  Cash and bank accounts:

 5  4.  Inventory:

 6  5.  Accounts receivable:

 7  6.  Equipment:

 8  7.  Prepaid expenses, including deposits, insurance, rents,

 9  and utilities:

10  8.  Other, including loans to third parties, claims, and

11  choses in action:

12  

13  II.  Exempt Property

14  

15    Description and                            Liquidation Value

16    Location                               at Date of Assignment

17  

18         (e)  The assignment and schedules shall be duly

19  verified upon oath by the assignor, and accepted by the

20  assignee under oath in substantially the following form:.

21  

22                    VERIFICATION OF ASSIGNMENT

23                    AND SCHEDULES BY ASSIGNOR

24  

25         The undersigned, (name), (position with assignor) of

26  (assignor), hereby verifies the Assignment of all of its

27  rights, title, and interest in and to all of its assets, as

28  indicated on the attached Schedules to that Assignment as

29  filed with this Court on (date), and further verifies each of

30  the facts set forth in the Schedules annexed to the Assignment

31  to the best of my knowledge and belief.


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 1                                                      

 2                            Name, Position with Assignor

 3  

 4  STATE OF FLORIDA

 5  COUNTY OF ........

 6  

 7         Sworn to and subscribed before me this .... day of

 8  ...., ...(year)....

 9  

10           ...(Signature of Notary Public - State of Florida)...

11           ...(Print, Type, or Stamp Commissioned Name of Notary

12  Public)...

13  

14         Personally Known .... OR Produced Identification ....

15  

16         Type of Identification Produced............

17  

18                      ACCEPTANCE BY ASSIGNEE

19  

20         The undersigned, (assignee), the Assignee herein, duly

21  acknowledges that the Assignee accepts delivery of the

22  assignment and that he or she will duly perform the duties

23  imposed upon the Assignee pursuant to chapter 727, Florida

24  Statutes.

25  

26                                                

27                                    Assignee

28  

29  

30  STATE OF FLORIDA

31  COUNTY OF ........


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 1  

 2         Sworn to and subscribed before me this .... day of

 3  ...., ...(year)....

 4  

 5           ...(Signature of Notary Public - State of Florida)...

 6           ...(Print, Type, or Stamp Commissioned Name of Notary

 7  Public)...

 8  

 9         Personally Known .... OR Produced Identification ....

10  

11         Type of Identification Produced............

12  

13         Section 5.  Section 727.105, Florida Statutes, is

14  amended to read:

15         727.105  Proceedings against assignee.--Proceedings No

16  proceeding may not be commenced against the assignee except as

17  provided in this chapter, but nothing contained in this

18  chapter affects herein shall affect any action or proceeding

19  by a governmental unit to enforce such governmental unit's

20  police or regulatory power. Except in the case of a consensual

21  lienholder secured creditor enforcing its rights in personal

22  property or real property collateral under chapter 679, there

23  shall be no levy, execution, attachment, or the like in

24  respect of any judgment against assets of the estate, other

25  than real property, in the possession, custody, or control of

26  the assignee.

27         Section 6.  Section 727.108, Florida Statutes, is

28  amended to read:

29         727.108  Duties of assignee.--The assignee shall:

30         (1)  Collect and reduce to money the assets of the

31  estate, whether by suit in any court of competent jurisdiction


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 1  or by public or private sale, including, but not limited to,

 2  prosecuting any tort claims or causes of action which were

 3  previously held by the assignor, regardless of any generally

 4  applicable law concerning the nonassignability of tort claims

 5  or causes of action, and;

 6         (a)  With respect to the estate's claims and causes of

 7  action, the assignee may prosecute such claims or causes of

 8  action as provided in this section or sell and assign, in

 9  whole or in part, such claims or causes of action to another

10  person or entity on the terms that the assignee determines are

11  in the best interest of the estate under to s. 727.111(4); and

12         (b)  In an action in any court by the assignee or the

13  first immediate transferee of the assignee, other than an

14  affiliate or insider of the assignor, against a defendant to

15  assert a claim or chose in action of the estate, the claim is

16  not subject to, and any remedy may not be limited by, a

17  defense based on the assignor's acquiescence, cooperation, or

18  participation in the wrongful act by the defendant which forms

19  the basis of the claim or chose in action.;

20         (2)  Within 30 days after the filing date, examine the

21  assignor, under oath, concerning the acts, conduct, assets,

22  liabilities, and financial condition of the assignor or any

23  matter related to the assignee's administration of the estate,

24  unless excused by the court for good cause shown.;

25         (3)  Give notice to creditors of all matters concerning

26  the administration of the estate, pursuant to the provisions

27  of s. 727.111.;

28         (4)  Conduct the business of the assignor for a limited

29  period that may not exceed 14 calendar days, if in the best

30  interest of the estate, or for a longer period limited

31  periods, if, in the best interest of the estate, upon notice


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 1  and until such time as an objection, if any, is sustained by

 2  the court; however, the assignee may not operate the business

 3  of the assignor for longer than 45 calendar days without a

 4  court order authorizing such operation if an objection by a

 5  party in interest is interposed to the assignee's motion for

 6  authority to operate the assignor's business. authorization of

 7  the court;

 8         (5)  To the extent reasonable in the exercise of the

 9  assignee's business judgment, reject an unexpired lease of

10  nonresidential real property or of personal property under

11  which the assignor is the lessee.

12         (6)(5)  To the extent reasonable and necessary, pay

13  administrative expenses of the estate, subject, however, to s.

14  727.114(1).;

15         (7)(6)  To the extent necessary, employ at the expense

16  of the estate one or more appraisers, auctioneers,

17  accountants, attorneys, or other professional persons, to

18  assist the assignee in carrying out his or her duties under

19  this chapter.;

20         (8)(7)  Keep regular accounts and furnish such

21  information concerning the estate as may be reasonably

22  requested by creditors or other parties in interest.;

23         (9)(8)  File with the court an interim report of

24  receipts and disbursements within 6 months after the filing

25  date unless excused by the court or unless the estate has been

26  sooner distributed in full.;

27         (10)(9)  Examine the validity and priority of all

28  claims against the estate.;

29         (11)(10)  Abandon assets to duly perfected secured or

30  lien creditors, where, after due investigation, he or she

31  determines that the estate has no equity in such assets or


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 1  such assets are burdensome to the estate or are of

 2  inconsequential value and benefit to the estate.;

 3         (12)(11)  Pay dividends and secured or priority claims

 4  as often as is compatible with the best interests of the

 5  estate and close the estate as expeditiously as possible.; and

 6         (13)(12)  File with the court a final report of all

 7  receipts and disbursements and file an application for his or

 8  her discharge pursuant to the provisions of s. 727.116.

 9         Section 7.  Section 727.109, Florida Statutes, is

10  amended to read:

11         727.109  Power of the court.--The court shall have

12  power to:

13         (1)  Enforce all provisions of this chapter.;

14         (2)  Set, approve, or reconsider the amount of the

15  assignee's bond.;

16         (3)  Upon notice and a hearing, if requested, authorize

17  the business of the assignor to be conducted for limited

18  periods by the assignee for longer than 14 calendar days, if

19  in the best interest of the estate.;

20         (4)  Allow or disallow claims against the estate and

21  determine their priority and establish a deadline, upon motion

22  by the assignee, for the filing of all claims against the

23  assignment estate arising on or after the date on which the

24  assignor's petition for assignment was filed with the court.

25  The deadline may not occur less than 30 days before notice is

26  received by mail of the order establishing the deadline.;

27         (5)  Determine any claims of exemption by the assignor,

28  if disputed.;

29         (6)  Authorize the assignee to reject an unexpired

30  lease of nonresidential real property or of personal property

31  


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 1  under which the assignor is the lessee pursuant to s.

 2  727.108(5).

 3         (7)  Upon notice as provided under s. 727.111 to all

 4  creditors and consensual lienholders, hear and determine a

 5  motion brought by the assignee for approval of a proposed sale

 6  of assets of the estate other than in the ordinary course of

 7  business, or the compromise or settlement of a controversy,

 8  and enter an order granting such motion notwithstanding the

 9  lack of objection if the assignee reasonably believes that

10  such order is necessary to proceed with the action

11  contemplated by the motion.

12         (8)(6)  Hear and determine any of the following actions

13  brought by the assignee, which she or he is hereby empowered

14  to maintain:

15         (a)  Enforce the turnover of assets of the estate

16  pursuant to s. 727.106.;

17         (b)  Determine the validity, priority, and extent of a

18  lien or other interests in assets of the estate, or to

19  subordinate or avoid an unperfected security interest pursuant

20  to the assignee's rights as a lien creditor under s. 679.301.;

21         (c)  Avoid any conveyance or transfer void or voidable

22  by law.;

23         (9)(7)  Approve the assignee's final report and interim

24  and final distributions to creditors.;

25         (10)(8)  Approve reasonable fees and the reimbursement

26  of expenses for the assignee and all professional persons

27  retained by the assignee, upon objection of a party in

28  interest or upon the court's own motion.;

29         (11)(9)  Hear and determine any motion brought by a

30  party in interest or by the court to close the estate after

31  


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 1  the passage of 1 year from the date of filing of the

 2  petition.;

 3         (12)(10)  Discharge the assignee and the assignee's

 4  surety from liability upon matters included in the assignee's

 5  final report.;

 6         (13)(11)  Reopen estates for cause shown.;

 7         (14)(12)  Punish by contempt any failure to comply with

 8  the provisions of this chapter or any order of the court made

 9  pursuant to this chapter.; and

10         (15)(13)  Exercise any such other and further powers

11  that as are necessary to enforce or carry out the provisions

12  of this chapter.

13         Section 8.  Subsection (1) of section 727.110, Florida

14  Statutes, is amended to read:

15         727.110  Actions by assignee and other parties in

16  interest.--

17         (1)  All matters requiring court authorization under

18  this chapter shall be brought by motion, except for the

19  following matters, which shall be brought by supplemental

20  proceeding, as provided in subsection (2):

21         (a)  An action by the assignee to recover money or

22  other assets of the estate;

23         (b)  An action by the assignee to determine the

24  validity, priority, or extent of a lien or other interest in

25  property or to subordinate or avoid an unperfected security

26  interest under s. 727.109(8)(b) s. 727.109(6)(b); and

27         (c)  An action by the assignee to avoid any conveyance

28  or transfer void or voidable by law under s. 727.109(8)(c) s.

29  727.109(6)(c).

30         Section 9.  Subsections (4) and (8) of section 727.111,

31  Florida Statutes, are amended to read:


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 1         727.111  Notice.--

 2         (4)  The assignee shall give the assignor and all

 3  creditors not less than 20 days' notice by mail of a proposed

 4  sale of assets of the estate other than in the ordinary course

 5  of business, the assignee's continued operation of the

 6  assignor's business for longer than 14 calendar days, the

 7  compromise or settlement of a controversy, and the payment of

 8  fees and expenses to the assignee and to professional persons

 9  employed by the assignee pursuant to s. 727.108(7) s.

10  727.108(6). Any and all objections to the proposed action must

11  be filed and served upon the assignee and the assignee's

12  attorney, if any, not less than 3 days before the date of the

13  proposed action. The notice must shall include a description

14  of the proposed action to be taken, and the date of the

15  proposed action, and shall set forth the date and place for

16  the hearing at which any objections will shall be heard.  If

17  no objections are not timely filed and served, the assignee

18  may take such action as described in the notice without

19  further order of the court or may obtain an order of the court

20  granting such motion if the assignee reasonably believes that

21  the order is necessary to proceed with the action contemplated

22  by the motion.

23         (8)  Wherever notice is required to be given under this

24  chapter, a certificate of service of such notice shall be

25  filed with the court and notice shall be given to all

26  consensual lienholders and counsel who have filed a notice of

27  appearance with the court or who are identified in the

28  assignor's schedules.

29         Section 10.  Subsections (6) and (7) are added to

30  section 727.112, Florida Statutes, to read:

31         727.112  Proof of claim.--


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 1         (6)  If a claim for damages results from the assignee's

 2  rejection of a lease of real property, the claim shall be

 3  limited to:

 4         (a)  The rent reserved by such lease, without

 5  acceleration, for the greater of 1 year or 15 percent of the

 6  remaining term of the lease, following the earlier of the date

 7  of assignment or the date on which the lessor repossessed, or

 8  the lessee surrendered, the leased property; and

 9         (b)1.  Any unpaid rent due under the lease, without

10  acceleration, on the earlier of the dates specified in

11  paragraph (a);

12         2.  Reasonable attorney's fees and costs incurred by

13  the lessor in connection with the lease; and

14         3.  The lessor's reasonable costs incurred in reletting

15  the premises previously leased by the assignor.

16         (7)  If a claim for damages results from the

17  termination of an employment contract, the claim shall be

18  limited to:

19         (a)  The compensation provided by the contract, without

20  acceleration, for 1 year following the earlier of the date of

21  assignment or the date on which the assignor or assignee, as

22  applicable, directed the employee to terminate, or such

23  employee terminated, performance under the contract; and

24         (b)  Any unpaid compensation due under the contract,

25  without acceleration, on the earlier of the dates specified in

26  paragraph (a).

27         Section 11.  Section 727.113, Florida Statutes, is

28  amended to read:

29         727.113  Objections to claims.--

30         (1)  At any time prior to the entry of an order

31  approving the assignee's final report, the assignee or any


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 1  party in interest, including another creditor of the assignor,

 2  may file with the court an objection to a claim, which

 3  objection must shall be in writing and shall set forth the

 4  nature of the objection.  A copy of the objection, together

 5  with notice of hearing thereon, shall be mailed to the

 6  creditor at least 20 days prior to the hearing.  All claims

 7  properly filed with the assignee and not disallowed by the

 8  court shall constitute all claims entitled to distribution

 9  from the estate.

10         (2)  Following expiration of the claims bar date, the

11  assignee shall create a register of all creditors that have

12  filed claims against the assignor's estate and shall make the

13  register available upon request to any creditor or other party

14  in interest.

15         (3)  The assignee, as well as any creditor or any party

16  in interest, has standing to challenge the validity, extent,

17  or priority of any claim filed by a creditor against the

18  assignor's estate.

19         (4)  A creditor whose claim is secured by a lien

20  against property of the estate has 60 days following the sale

21  or disposition of the property securing his or her claim to

22  file a claim for an unsecured deficiency, notwithstanding the

23  passage of the last date in which a proof of claim may be

24  served upon the assignee set forth in s. 727.112(2). If such a

25  creditor fails to file with the assignee a deficiency claim

26  within 10 days after the filing and service by mail of the

27  assignee's final report of all receipts and disbursements, the

28  creditor's deficiency claim shall be disallowed as untimely

29  and the creditor is not entitled to share in any distribution

30  made to holders of unsecured claims under s. 727.114(1)(f) on

31  account of its deficiency claim.


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 1         Section 12.  Section 727.114, Florida Statutes, is

 2  amended to read:

 3         727.114  Priority of claims.--Allowed claims shall

 4  receive distribution under this chapter in the following order

 5  of priority and, with the exception of paragraph (1)(a)

 6  subsection (1), on a pro rata basis:

 7         (1)(a)  Creditors with liens on assets of the estate,

 8  which liens are duly perfected pursuant to applicable law,

 9  shall receive the proceeds from the disposition of their

10  collateral, less the reasonable, necessary expenses of

11  preserving or disposing of such collateral to the extent of

12  any benefit to such creditors.  If and to the extent that such

13  proceeds are less than the amount of a creditor's claim or a

14  creditor's lien is avoided pursuant to s. 727.109(8)(c) s.

15  727.109(6)(c), such a creditor shall be deemed to be an

16  unsecured creditor for such deficiency pursuant to paragraph

17  (f) subsection (6) of this section.

18         (b)(2)  Expenses incurred during the administration of

19  the estate, other than those expenses allowable under

20  paragraph (a) subsection (1), including allowed fees and

21  reimbursements of all expenses of the assignee and

22  professional persons employed by the assignee under s.

23  727.108(7), and rent incurred by the assignee in occupying any

24  premises in which the assets of the assignment estate are

25  located or the business of the assignor is conducted, from and

26  after the date of the assignment, through and until the

27  earlier of the date on which the lease for such premises is

28  rejected pursuant to an order of the court or the date of

29  termination of such lease pursuant to s. 727.108(6).

30  

31  


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 1         (c)(3)  Unsecured claims of governmental units for

 2  taxes that which accrued within 3 years before prior to the

 3  filing date.

 4         (d)(4)  Claims for wages, salaries, or commissions,

 5  including vacation, severance, and sick leave pay, or

 6  contributions to an employee benefit plan earned by employees

 7  of the assignor the individual within 180 90 days before of

 8  the filing date or the cessation of the assignor's business,

 9  whichever occurs first, but only to the extent of $10,000 per

10  individual employee $2,000.

11         (e)(5)  Allowed unsecured claims, to the extent of

12  $2,225 $900 for each individual, arising from the deposit with

13  the assignor before the filing date of money in connection

14  with the purchase, lease, or rental of property or the

15  purchase of services for personal, family, or household use by

16  such individuals that were not delivered or provided.

17         (f)(6)  Unsecured claims.

18         (2)  A subordination agreement is enforceable under

19  this chapter to the same extent that such agreement is

20  enforceable under applicable law.

21         (3)  For the purpose of distributions under this

22  chapter, a claim arising from rescission of a purchase or sale

23  of a security of the assignor or of an affiliate of the

24  assignor for damages arising from the purchase or sale of the

25  security or for reimbursement or contribution allowed under

26  this chapter on account of such a claim shall be subordinated

27  to all claims or interests that are senior to or equal to the

28  claim or interest represented by such security, except that if

29  the security is common stock, the claim has the same priority

30  as common stock.

31  


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 1  If all of the above classes have been paid in full, any

 2  residue shall be paid to the assignor.

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