Florida Senate - 2020                              CS for SB 660
       By the Committee on Commerce and Tourism; and Senator Berman
       577-03081-20                                           2020660c1
    1                        A bill to be entitled                      
    2         An act relating to the Uniform Commercial Real Estate
    3         Receivership Act; creating chapter 714, F.S., relating
    4         to the Uniform Commercial Real Estate Receivership
    5         Act; providing a short title; defining terms;
    6         prohibiting a court from issuing certain orders unless
    7         certain requirements are met; providing requirements
    8         for certain court orders; providing construction and
    9         applicability; specifying that a court has exclusive
   10         jurisdiction to direct receivers and determine
   11         controversies under certain circumstances; providing
   12         requirements and authorizations relating to the
   13         appointment of a receiver; authorizing certain parties
   14         to move to dissolve or modify certain orders;
   15         requiring that such motions be heard within a
   16         specified timeframe; specifying when a person is or is
   17         not disqualified from appointment as a receiver;
   18         authorizing certain persons to nominate someone to
   19         serve as a receiver; specifying that the court is not
   20         bound by such nomination; requiring a receiver to post
   21         a bond with the court which meets certain
   22         requirements; providing an exception; prohibiting a
   23         claim against a receiver’s bond or alternative
   24         security from being made after a certain time;
   25         providing that an appointed receiver has certain
   26         statuses of a lien creditor; providing that certain
   27         property is subject to specified security agreements;
   28         providing requirements relating to the collection and
   29         turnover of receivership property; providing for
   30         powers and duties of a receiver; authorizing the court
   31         to expand, modify, or limit such powers and duties;
   32         providing for duties of an owner; authorizing a court
   33         to take certain actions if a person knowingly fails to
   34         perform a duty; authorizing a court to take certain
   35         actions relating to stays and injunctions; authorizing
   36         certain persons to apply for relief from a stay or
   37         injunction; requiring that certain motions be heard
   38         within a specified timeframe; specifying when an order
   39         does not operate as a stay or injunction; authorizing
   40         receivers to engage and compensate certain
   41         professionals under certain circumstances; requiring
   42         certain persons to file an itemized statement with the
   43         court; requiring a receiver to pay an amount approved
   44         by the court; defining the term “good faith”;
   45         authorizing a receiver to use or transfer receivership
   46         property other than in the ordinary course of business
   47         under certain circumstances; providing for the service
   48         of notice to lienholders who are not parties to the
   49         action; defining the term “timeshare interest”;
   50         authorizing a receiver to adopt or reject an executory
   51         contract of the owner relating to receivership
   52         property under certain circumstances; requiring that a
   53         claim of damages for rejection of a contract be
   54         submitted within a specified timeframe; authorizing a
   55         purchaser to take certain actions if a receiver
   56         rejects an executory contract under certain
   57         circumstances; prohibiting a receiver from rejecting
   58         unexpired leases of certain property under certain
   59         circumstances; providing for defenses and immunities
   60         of a receiver; providing requirements for interim
   61         reports filed by a receiver; providing requirements
   62         relating to notices of appointment; authorizing the
   63         court to enter certain orders if the court concludes
   64         that receivership property is likely to be
   65         insufficient to satisfy certain claims; providing
   66         requirements for certain distributions of receivership
   67         property; authorizing a court to award fees and
   68         expenses; authorizing a court to order certain persons
   69         to pay fees and expenses; providing for the removal
   70         and replacement of a receiver and the termination of a
   71         court’s administration of the receivership property
   72         under certain circumstances; requiring a receiver to
   73         file a final report containing certain information
   74         upon completion of the receiver’s duties; specifying
   75         that a receiver is discharged if certain requirements
   76         are met; authorizing a court to appoint ancillary
   77         receivers under certain circumstances; providing for
   78         rights, powers, and duties of an ancillary receiver;
   79         specifying that certain requests, appointments, and
   80         applications by a mortgagee do not have certain
   81         effects; providing construction and applicability;
   82         providing an effective date.
   84  Be It Enacted by the Legislature of the State of Florida:
   86         Section 1. Chapter 714, Florida Statutes, consisting of
   87  sections 714.01-714.28, is created to read:
   88                             CHAPTER 714                           
   90         714.01Short title.—This chapter may be cited as the
   91  Uniform Commercial Real Estate Receivership Act.
   92         714.02Definitions.—For the purposes of this chapter, the
   93  term:
   94         (1)“Affiliate” means:
   95         (a)With respect to an individual:
   96         1.A companion of the individual;
   97         2.A lineal ancestor or descendent, whether by blood or
   98  adoption, of:
   99         a.The individual; or
  100         b.A companion of the individual;
  101         3.A companion of an ancestor or descendent as described in
  102  subparagraph 2.;
  103         4.A sibling, aunt, uncle, great aunt, great uncle, first
  104  cousin, niece, nephew, grandniece, or grandnephew of the
  105  individual, whether related by the whole or the half blood or
  106  adoption, or a companion of any of them; or
  107         5.Any other person occupying the residence of the
  108  individual; and
  109         (b)With respect to a person other than an individual:
  110         1.Another person who directly or indirectly controls, is
  111  controlled by, or is under common control with the person;
  112         2.An officer, director, manager, member, partner,
  113  employee, or trustee or other fiduciary of the person; or
  114         3.A companion of an individual or an individual occupying
  115  the residence of an individual.
  116         (2)“Companion” means:
  117         (a)The spouse of an individual;
  118         (b)The registered domestic partner of an individual; or
  119         (c)Another individual in a civil union with an individual.
  120         (3)“Court” means the court of general equity jurisdiction
  121  in this state.
  122         (4)“Executory contract” means a contract, including a
  123  lease, under which each party has an unperformed obligation and
  124  the failure of a party to complete performance would constitute
  125  a material breach.
  126         (5)“Governmental unit” means an office, department,
  127  division, bureau, board, commission, or other agency of this
  128  state or a subdivision of this state.
  129         (6)“Lien” means an interest in property which secures
  130  payment or performance of an obligation.
  131         (7)“Mortgage” means a record, however denominated, that
  132  creates or provides for a consensual lien on real property or
  133  rents, even if the record also creates or provides for a lien on
  134  personal property.
  135         (8)“Mortgagee” means a person entitled to enforce an
  136  obligation secured by a mortgage.
  137         (9)“Mortgagor” means a person who grants a mortgage or a
  138  successor in ownership of the real property described in the
  139  mortgage.
  140         (10)“Owner” means the person for whose property a receiver
  141  is appointed.
  142         (11)“Person” means an individual, estate, business or
  143  nonprofit entity, public corporation, government or governmental
  144  subdivision, agency, or instrumentality or other legal entity.
  145         (12)“Proceeds” means any of the following property:
  146         (a)Whatever is acquired on the sale, lease, license,
  147  exchange, or other disposition of receivership property.
  148         (b)Whatever is collected on, or distributed on account of,
  149  receivership property.
  150         (c)Rights arising out of receivership property.
  151         (d)To the extent of the value of receivership property,
  152  claims arising out of the loss, nonconformity, or interference
  153  with the use of, defects or infringement of rights in, or damage
  154  to the property.
  155         (e)To the extent of the value of receivership property and
  156  to the extent payable to the owner or mortgagee, insurance
  157  payable by reason of the loss or nonconformity of, defects or
  158  infringement of rights in, or damage to the property.
  159         (13)“Property” means all of a person’s right, title, and
  160  interest, both legal and equitable, in real and personal
  161  property, tangible and intangible, wherever located and however
  162  acquired. The term includes proceeds, products, offspring,
  163  rents, or profits of or from the property.
  164         (14)“Receiver” means a person appointed by the court as
  165  the court’s agent, and subject to the court’s direction, to take
  166  possession of, manage, and, if authorized by this chapter or
  167  court order, transfer, sell, lease, license, exchange, collect,
  168  or otherwise dispose of receivership property.
  169         (15)“Receivership” means a proceeding in which a receiver
  170  is appointed.
  171         (16)“Receivership property” means the property of an owner
  172  which is described in the order appointing a receiver or a
  173  subsequent order. The term includes any proceeds, products,
  174  offspring, rents, or profits of or from the property.
  175         (17)“Record,” if used as a noun, means information that is
  176  inscribed on a tangible medium or that is stored on an
  177  electronic or other medium and is retrievable in perceivable
  178  form.
  179         (18)“Rents” means:
  180         (a)Sums payable for the right to possess or occupy, or for
  181  the actual possession or occupation of, real property of another
  182  person;
  183         (b)Sums payable to a mortgagor under a policy of rental
  184  interruption insurance covering real property;
  185         (c)Claims arising out of a default in the payment of sums
  186  payable for the right to possess or occupy real property of
  187  another person;
  188         (d)Sums payable to terminate an agreement to possess or
  189  occupy real property of another person;
  190         (e)Sums payable to a mortgagor for payment or
  191  reimbursement of expenses incurred in owning, operating, and
  192  maintaining real property or constructing or installing
  193  improvements on real property; or
  194         (f)Other sums payable under an agreement relating to the
  195  real property of another person which constitute rents under the
  196  laws of this state other than this act.
  197         (19)“Secured obligation” means an obligation the payment
  198  or performance of which is secured by a security agreement.
  199         (20)“Security agreement” means an agreement that creates
  200  or provides for a lien.
  201         (21)“Sign” means, with present intent to authenticate or
  202  adopt a record:
  203         (a)To execute or adopt a tangible symbol; or
  204         (b)To attach to or logically associate with the record an
  205  electronic sound, symbol, or process.
  206         (22)“State” means a state of the United States, the
  207  District of Columbia, Puerto Rico, the United States Virgin
  208  Islands, or any territory or insular possession subject to the
  209  jurisdiction of the United States.
  210         714.03Notice and opportunity for hearing.—
  211         (1)Except as otherwise provided in subsection (2), the
  212  court may issue an order under this chapter only after notice
  213  and opportunity for a hearing appropriate under the
  214  circumstances.
  215         (2)The court may issue an order under this chapter without
  216  written or oral notice to the adverse party only if:
  217         (a)It appears from the specific facts shown by affidavit
  218  or verified pleading or motion that immediate and irreparable
  219  injury, loss, or damage will result to the movant or that waste,
  220  dissipation, impairment, or substantial diminution in value will
  221  result to the subject real estate before any adverse party can
  222  be heard in opposition; and
  223         (b)The movant’s attorney certifies in writing all efforts
  224  that have been made to give notice to all known adverse parties,
  225  or the reasons why such notice should not be required.
  226         (3)Only an affidavit, a declaration or a verified
  227  pleading, or a motion may be used to support the application for
  228  the appointment of a receiver, unless the adverse party appears
  229  at the hearing or has received reasonable prior notice of the
  230  hearing. Every order appointing a receiver without notice must
  231  be endorsed with the date and hour of entry, must be filed
  232  forthwith in the clerk’s office, must define the injury, must
  233  state findings by the court as to why the injury may be
  234  irreparable, and must give the reasons why the order was granted
  235  without notice if notice was not given. The order appointing a
  236  receiver shall remain in effect until the further order of the
  237  court.
  238         (4)This chapter does not displace any existing rule of
  239  procedural or judicial administration of this state governing
  240  service or notice, including, without limitation, Rule 1.070,
  241  Florida Rules of Civil Procedure, and Rule 2.525, Florida Rules
  242  of Judicial Administration, which shall remain in full force and
  243  effect.
  244         714.04Scope; exclusions.—
  245         (1)This chapter applies to a receivership initiated in a
  246  court of this state for an interest in real property and any
  247  incidental personal property related to or used in operating the
  248  real property.
  249         (2)This chapter does not apply to:
  250         (a)Actions in which a state agency or officer is expressly
  251  authorized by statute to seek or obtain the appointment of a
  252  receiver;
  253         (b)Actions authorized by or commenced under federal law;
  254         (c)Real property improved by one or two dwelling units
  255  which includes the homestead of an individual owner or an
  256  affiliate of an individual owner;
  257         (d)Property of an individual exempt from forced sale,
  258  execution, or seizure under the laws of this state; or
  259         (e)Personal property of an individual which is used
  260  primarily for personal, family, or household purposes.
  261         (3)This chapter does not limit the authority of a court to
  262  appoint a receiver under the laws of this state other than this
  263  chapter.
  264         (4)This chapter does not limit an individual’s homestead
  265  rights under the laws of this state or federal law.
  266         (5)Unless displaced by a particular provision of this
  267  chapter, the principles of law and equity, including the law
  268  relative to capacity to contract, principal and agent, estoppel,
  269  laches, fraud, misrepresentation, duress, coercion, mistake,
  270  bankruptcy, or other validating or invalidating cause,
  271  supplement this chapter.
  272         714.05Power of the court.—The court that appoints a
  273  receiver under this chapter has exclusive jurisdiction to direct
  274  the receiver and determine any controversy related to the
  275  receivership or receivership property.
  276         714.06Appointment of receiver.—
  277         (1)The court may appoint a receiver:
  278         (a)Before judgment, to protect a party that demonstrates
  279  an apparent right, title, or interest in real property that is
  280  the subject of the action, if the property or its revenue
  281  producing potential:
  282         1.Is being subjected to or is in danger of waste, loss,
  283  substantial diminution in value, dissipation, or impairment; or
  284         2.Has been or is about to be the subject of a voidable
  285  transaction;
  286         (b)After judgment:
  287         1.To carry the judgment into effect; or
  288         2.To preserve nonexempt real property pending appeal or
  289  when an execution has been returned unsatisfied and the owner
  290  refuses to apply the property in satisfaction of the judgment;
  291         (c)In an action in which a receiver for real property may
  292  be appointed on equitable grounds, subject to the requirements
  293  of paragraphs (a) and (b); or
  294         (d)During the time allowed for redemption, to preserve
  295  real property sold in an execution or foreclosure sale and
  296  secure its rents to the person entitled to the rents.
  297         (2)In connection with the foreclosure or other enforcement
  298  of a mortgage, the court shall consider the following facts and
  299  circumstances, together with any other relevant facts, in
  300  deciding whether to appoint a receiver for the mortgaged
  301  property:
  302         (a)Appointment is necessary to protect the property from
  303  waste, loss, substantial diminution in value, transfer,
  304  dissipation, or impairment;
  305         (b)The mortgagor agreed in a signed record to the
  306  appointment of a receiver on default;
  307         (c)The owner agreed, after default and in a signed record,
  308  to appointment of a receiver;
  309         (d)The property and any other collateral held by the
  310  mortgagee are not sufficient to satisfy the secured obligation;
  311         (e)The owner fails to turn over to the mortgagee proceeds
  312  or rents the mortgagee was entitled to collect; or
  313         (f)The holder of a subordinate lien obtains appointment of
  314  a receiver for the property.
  315         (3)The court may condition the appointment of a receiver
  316  without prior notice or hearing under s. 714.03 on the giving of
  317  security by the person seeking the appointment for the payment
  318  of damages, reasonable attorney fees, and costs incurred or
  319  suffered by any person if the court later concludes that the
  320  appointment was not justified. If the court later concludes that
  321  the appointment was justified and the order of appointment of
  322  the receiver becomes final and no longer subject to appeal, the
  323  court shall release the bond or other security. When any order
  324  appointing a receiver or providing for injunctive relief is
  325  issued on the pleading of a municipality or the state, or any
  326  officer, agency, or political subdivision thereof, the court may
  327  require or dispense with a bond, with or without surety, and
  328  conditioned in the same manner, having due regard for public
  329  interest.
  330         (4)A party adversely affected by an order appointing a
  331  receiver may move to dissolve or modify the order at any time.
  332  If a party moves to dissolve or modify the order, the motion
  333  must be heard within 5 days after the movant applies for a
  334  hearing on the motion or at such time as the court determines is
  335  reasonable and appropriate under the circumstances after the
  336  movant applies for a hearing on the motion. After notice and a
  337  hearing, the court may grant relief for cause shown.
  338         714.07Disqualification from appointment as receiver;
  339  disclosure of interest.—
  340         (1)The court may not appoint a person as receiver unless
  341  the person submits to the court a statement under penalty of
  342  perjury that the person is not disqualified.
  343         (2)Except as otherwise provided in subsection (3), a
  344  person is disqualified from appointment as receiver if the
  345  person:
  346         (a)Is an affiliate of a party;
  347         (b)Has an interest materially adverse to an interest of a
  348  party;
  349         (c)Has a material financial interest in the outcome of the
  350  action, other than compensation the court may allow the
  351  receiver;
  352         (d)Has a debtor-creditor relationship with a party; or
  353         (e)Holds an equity interest in a party, other than a
  354  noncontrolling interest in a publicly traded company.
  355         (3)A person is not disqualified from appointment as
  356  receiver solely because the person:
  357         (a)Was appointed receiver or is owed compensation in an
  358  unrelated matter involving a party or was engaged by a party in
  359  a matter unrelated to the receivership;
  360         (b)Is an individual obligated to a party on a debt that is
  361  not in default and was incurred primarily for personal, family,
  362  or household purposes; or
  363         (c)Maintains with a party a deposit account, as defined in
  364  s. 679.1021.
  365         (4)A person seeking appointment of a receiver may nominate
  366  a person to serve as receiver, but the court is not bound by the
  367  nomination.
  368         714.08Receiver’s bond; alternative security.—
  369         (1)Except as otherwise provided in subsection (2), a
  370  receiver shall post with the court a bond that:
  371         (a)Is conditioned on the faithful discharge of the
  372  receiver’s duties;
  373         (b)Has one or more sureties approved by the court;
  374         (c)Is in an amount the court specifies; and
  375         (d)Is effective as of the date of the receiver’s
  376  appointment.
  377         (2)The court may approve the receiver posting an
  378  alternative security with the court, such as a letter of credit
  379  or deposit of funds. The receiver may not use receivership
  380  property as alternative security. Interest that accrues on
  381  deposited funds must be paid to the receiver upon the receiver’s
  382  discharge.
  383         (3)The court may authorize a receiver to act before the
  384  receiver posts the bond or alternative security required by this
  385  section if the action is necessary to prevent or mitigate
  386  immediate injury, loss, or damage to the party who sought the
  387  appointment of the receiver, or immediate waste, dissipation,
  388  impairment, or substantial diminution in value to the
  389  receivership property.
  390         (4)A claim against a receiver’s bond or alternative
  391  security must be made not later than 1 year after the date the
  392  receiver is discharged.
  393         714.09Status of receiver as lien creditor.—Upon
  394  appointment of a receiver, the receiver has the status of a lien
  395  creditor under:
  396         (1)Chapter 679 as to receivership property or fixtures;
  397  and
  398         (2)Chapter 695 as to receivership property that is real
  399  property.
  400         714.10Security agreement covering after-acquired
  401  property.—Except as otherwise provided by law other than this
  402  chapter, property that a receiver or an owner acquires after
  403  appointment of the receiver is subject to a security agreement
  404  entered into before the appointment to the same extent as if the
  405  court had not appointed the receiver.
  406         714.11Collection and turnover of receivership property.—
  407         (1)Unless the court orders otherwise, on demand by a
  408  receiver:
  409         (a)A person that owes a debt that is receivership property
  410  and is matured or payable on demand or on order shall pay the
  411  debt to or on the order of the receiver, except to the extent
  412  the debt is subject to setoff or recoupment; and
  413         (b)Subject to subsection (3), a person that has
  414  possession, custody, or control of receivership property shall
  415  turn the property over to the receiver.
  416         (2)A person that has notice of the appointment of a
  417  receiver and owes a debt that is receivership property may not
  418  satisfy the debt by payment to the owner.
  419         (3)If a creditor has possession, custody, or control of
  420  receivership property and the validity, perfection, or priority
  421  of the creditor’s lien on the property depends on the creditor’s
  422  possession, custody, or control, the creditor may retain
  423  possession, custody, or control until the court orders adequate
  424  protection of the creditor’s lien.
  425         (4)Unless a bona fide dispute exists about a receiver’s
  426  right to possession, custody, or control of receivership
  427  property, the court may sanction as civil contempt a person’s
  428  failure to turn the property over when required by this section.
  429         714.12Powers and duties of receiver.—
  430         (1)Except as limited by court order or the laws of this
  431  state other than this chapter, a receiver may:
  432         (a)Collect, control, manage, conserve, and protect
  433  receivership property;
  434         (b)Operate a business constituting receivership property,
  435  including preservation, use, sale, lease, license, exchange,
  436  collection, or disposition of the property in the ordinary
  437  course of business;
  438         (c)In the ordinary course of business, incur unsecured
  439  debt and pay expenses incidental to the receiver’s preservation,
  440  use, sale, lease, license, exchange, collection, or disposition
  441  of receivership property;
  442         (d)Assert a right, claim, cause of action, or defense of
  443  the owner which relates to receivership property;
  444         (e)Seek and obtain instruction from the court concerning
  445  receivership property, exercise of the receiver’s powers, and
  446  performance of the receiver’s duties;
  447         (f)Upon subpoena, compel a person to submit to examination
  448  under oath, or to produce and permit inspection and copying of
  449  designated records or tangible things, with respect to
  450  receivership property or any other matter that may affect
  451  administration of the receivership;
  452         (g)Engage a professional pursuant to s. 714.15;
  453         (h)Apply to a court of another state for appointment as
  454  ancillary receiver with respect to receivership property located
  455  in that state; and
  456         (i)Exercise any power conferred by court order, this
  457  chapter, or the laws of this state other than this chapter.
  458         (2)With court approval, a receiver may:
  459         (a)Incur debt for the use or benefit of receivership
  460  property other than in the ordinary course of business;
  461         (b)Make improvements to receivership property;
  462         (c)Use or transfer receivership property other than in the
  463  ordinary course of business pursuant to s. 714.16;
  464         (d)Adopt or reject an executory contract of the owner
  465  pursuant to s. 714.17;
  466         (e)Pay compensation to the receiver pursuant to s. 714.21,
  467  and to each professional engaged by the receiver under s.
  468  714.15;
  469         (f)Recommend allowance or disallowance of a claim of a
  470  creditor pursuant to s. 714.20; and
  471         (g)Make a distribution of receivership property pursuant
  472  to s. 714.20.
  473         (3)A receiver shall:
  474         (a)Prepare and retain appropriate business records,
  475  including a record of each receipt, disbursement, and
  476  disposition of receivership property;
  477         (b)Account for receivership property, including the
  478  proceeds of a sale, lease, license, exchange, collection, or
  479  other disposition of the property;
  480         (c)File with the recording office of the county in which
  481  the real property is located a copy of the order appointing the
  482  receiver and, if a legal description of the real property is not
  483  included in the order, the legal description;
  484         (d)Disclose to the court any fact arising during the
  485  receivership which would disqualify the receiver under s.
  486  714.07; and
  487         (e)Perform any duty imposed by court order, this chapter,
  488  or the laws of this state other than this chapter.
  489         (4)The powers and duties of a receiver may be expanded,
  490  modified, or limited by court order.
  491         714.13Duties of owner.—
  492         (1)An owner shall:
  493         (a)Assist and cooperate with the receiver in the
  494  administration of the receivership and the discharge of the
  495  receiver’s duties;
  496         (b)Preserve and turn over to the receiver all receivership
  497  property in the owner’s possession, custody, or control;
  498         (c)Identify all records and other information relating to
  499  the receivership property, including a password, authorization,
  500  or other information needed to obtain or maintain access to or
  501  control of the receivership property, and make available to the
  502  receiver the records and information in the owner’s possession,
  503  custody, or control;
  504         (d)Upon subpoena, submit to examination under oath by the
  505  receiver concerning the acts, conduct, property, liabilities,
  506  and financial condition of the owner or any matter relating to
  507  the receivership property or the receivership; and
  508         (e)Perform any duty imposed by court order, this chapter,
  509  or the laws of this state other than this chapter.
  510         (2)If an owner is a person other than an individual, this
  511  section applies to each officer, director, manager, member,
  512  partner, trustee, or other person exercising or having the power
  513  to exercise control over the affairs of the owner.
  514         (3)If a person knowingly fails to perform a duty imposed
  515  by this section, the court may:
  516         (a)Award the receiver actual damages caused by the
  517  person’s failure, reasonable attorney fees, and costs; and
  518         (b)Sanction the failure as civil contempt.
  519         714.14Stay; injunction.—
  520         (1)Except as otherwise provided in subsection (5), after
  521  notice and opportunity for a hearing, the court may enter an
  522  order providing for a stay, applicable to all persons, of any
  523  act, action, or proceeding:
  524         (a)To obtain possession of, exercise control over, or
  525  enforce a judgment against all or a portion of the receivership
  526  property as defined in the order creating the stay; and
  527         (b)To enforce a lien against all or a portion of the
  528  receivership property to the extent the lien secures a claim
  529  against the owner which arose before entry of the order.
  531  The court shall include in its order a specific description of
  532  the receivership property subject to the stay, and shall include
  533  the following language in the title of the order: “Order Staying
  534  Certain Actions to Enforce Claims against Receivership
  535  Property.”
  536         (2)Except as otherwise provided in subsection (5), the
  537  court may enjoin an act, action, or proceeding against or
  538  relating to receivership property if the injunction is necessary
  539  to protect against misappropriation of, or waste relating
  540  directly to, the receivership property.
  541         (3)If the court grants injunctive relief, the injunction
  542  must specify the reasons for entry and must describe in
  543  reasonable detail the act or acts restrained without reference
  544  to a pleading or other document. The injunction is binding on
  545  the parties to the action; on the parties’ officers, agents,
  546  servants, employees, and attorneys; and on any person who
  547  receives actual notice of the injunction and is in active
  548  concert or participation with the parties.
  549         (4)A person whose act, action, or proceeding is stayed or
  550  enjoined under this section, or who is otherwise adversely
  551  affected by such stay or injunction, may apply to the court for
  552  relief from the stay or injunction. If a person moves for such
  553  relief, the motion must be heard within 5 days after the movant
  554  applies for a hearing on the motion or at such time as the court
  555  determines is reasonable and appropriate under the circumstances
  556  after the movant applies for a hearing on the motion. After
  557  notice and a hearing, the court may grant relief for cause
  558  shown.
  559         (5)An order under subsection (1) or subsection (2) does
  560  not operate as a stay or injunction of:
  561         (a)Any act, action, or proceeding to foreclose or
  562  otherwise enforce a mortgage by the person seeking appointment
  563  of the receiver;
  564         (b)Any act, action, or proceeding to perfect, or maintain
  565  or continue the perfection of, an interest in receivership
  566  property;
  567         (c)Commencement or continuation of a criminal proceeding;
  568         (d)Commencement or continuation of an action or
  569  proceeding, or enforcement of a judgment other than a money
  570  judgment, in an action or proceeding by a governmental unit to
  571  enforce its police or regulatory power; or
  572         (e)Establishment by a governmental unit of a tax liability
  573  against the receivership property or the owner of such
  574  receivership property, or an appeal of any such liability.
  575         (6)The court may void an act that violates a stay or
  576  injunction under this section.
  577         (7)The scope of the receivership property subject to the
  578  stay under subsection (1) may be modified upon request of the
  579  receiver or other person, after notice and an opportunity for a
  580  hearing.
  581         (8)In connection with the entry of an order under
  582  subsection (1) or subsection (2), the court shall determine
  583  whether an additional bond or alternative security will be
  584  required as a condition to entry of the stay or injunction and,
  585  if required, direct the party requesting the stay or injunction
  586  to post a bond or alternative security as a condition for the
  587  stay or injunction to become effective.
  588         714.15Engagement and compensation of professional.—
  589         (1)With court approval, a receiver may engage an attorney,
  590  an accountant, an appraiser, an auctioneer, a broker, or another
  591  professional to assist the receiver in performing a duty or
  592  exercising a power of the receiver. The receiver shall disclose
  593  to the court:
  594         (a)The identity and qualifications of the professional;
  595         (b)The scope and nature of the proposed engagement;
  596         (c)Any potential conflict of interest; and
  597         (d)The proposed compensation.
  598         (2)A person is not disqualified from engagement under this
  599  section solely because of the person’s engagement by,
  600  representation of, or other relationship with the receiver, a
  601  creditor, or a party. This chapter does not prevent the receiver
  602  from serving in the receivership as an attorney, an accountant,
  603  an auctioneer, or a broker when authorized by law.
  604         (3)A receiver or professional engaged under subsection (1)
  605  shall file with the court an itemized statement of the time
  606  spent, work performed, and billing rate of each person that
  607  performed the work and an itemized list of expenses. The
  608  receiver shall pay the amount approved by the court.
  609         714.16Use or transfer of receivership property not in
  610  ordinary course of business.—
  611         (1)For the purposes of this section, the term “good faith”
  612  means honesty in fact and the observance of reasonable
  613  commercial standards of fair dealing.
  614         (2)Before judgment is entered with respect to the
  615  receivership property in the action in which the receiver is
  616  appointed, with court approval after notice to all parties with
  617  an interest in the property, including all lienholders, and a
  618  hearing, a receiver may use or transfer by sale, lease, license,
  619  exchange, or other disposition receivership property other than
  620  in the ordinary course of business only if the owner of the
  621  property:
  622         (a)After the commencement of the action in which the
  623  receiver is appointed, expressly consents in writing to the
  624  receiver’s proposed use or transfer of the receivership
  625  property, and the receiver notes the property owner’s express
  626  consent in the motion to approve the proposed use or transfer;
  627  or
  628         (b)Before or at the hearing on the receiver’s motion to
  629  approve the use or transfer of the receivership property, fails
  630  to object thereto after the receiver in good faith has provided
  631  reasonable advance written notice to the property owner of the
  632  proposed use or transfer, and the receiver demonstrates in the
  633  motion that the proposed use or transfer is necessary to prevent
  634  waste, loss, substantial diminution in value, dissipation, or
  635  impairment of the property or its revenue-producing potential or
  636  to prevent a voidable transaction involving the property.
  638  Service of notice to lienholders who are not parties to the
  639  action must be made as provided in chapter 48 for service of
  640  original process or, in the case of a financial institution
  641  lienholder, as provided in s. 655.0201. If service cannot be
  642  effectuated in such manner, upon authorization by court order,
  643  the receiver may effect service of notice on the nonparty
  644  lienholder pursuant to chapter 49 or as otherwise ordered by the
  645  court.
  646         (3)After judgment is entered against the property owner
  647  and with court approval in the action in which the receiver is
  648  appointed, a receiver may use or transfer receivership property
  649  other than in the ordinary course of business to carry the
  650  judgment into effect or to preserve nonexempt real property
  651  pending appeal or when an execution has been returned
  652  unsatisfied and the owner refuses to apply the property in
  653  satisfaction of the judgment.
  654         (4)The court may order that a transfer of receivership
  655  property under this section is free and clear of any liens on
  656  the property at the time of the transfer. In such case, any
  657  liens on the property, which were valid at the time of the
  658  transfer but extinguished by the transfer, attach to the
  659  proceeds of the transfer with the same validity, perfection, and
  660  priority the liens had on the property immediately before the
  661  transfer, even if the proceeds are not sufficient to satisfy all
  662  obligations secured by the liens.
  663         (5)A transfer under subsection (3) may occur by means
  664  other than a public auction sale. A creditor holding a valid
  665  lien on the property to be transferred may purchase the property
  666  and offset against the purchase price part or all of the allowed
  667  amount secured by the lien if the creditor tenders funds
  668  sufficient to satisfy in full the reasonable expenses of
  669  transfer and the obligation secured by any senior lien
  670  extinguished by the transfer.
  671         (6)A reversal or modification of an order approving a
  672  transfer under subsection (3) does not affect the validity of
  673  the transfer to a person that acquired the property in good
  674  faith or revive against the person any lien extinguished by the
  675  transfer, whether the person knew before the transfer of the
  676  request for reversal or modification, unless the court stayed
  677  the order before the transfer.
  678         714.17Executory contract.—
  679         (1)For the purposes of this section, the term “timeshare
  680  interest” has the same meaning as in s. 721.05(36).
  681         (2)Except as otherwise provided in subsection (8), with
  682  court approval, a receiver may adopt or reject an executory
  683  contract of the owner relating to receivership property. The
  684  court may condition the receiver’s adoption and continued
  685  performance of the contract on terms appropriate under the
  686  circumstances. If the receiver does not request court approval
  687  to adopt or reject the contract within a reasonable time after
  688  the receiver’s appointment, the receiver is deemed to have
  689  rejected the contract.
  690         (3)A receiver’s performance of an executory contract
  691  before court approval under subsection (2) of its adoption or
  692  rejection is not an adoption of the contract and does not
  693  preclude the receiver from seeking approval to reject the
  694  contract.
  695         (4)A provision in an executory contract which requires or
  696  permits a forfeiture, modification, or termination of the
  697  contract because of the appointment of a receiver or the
  698  financial condition of the owner does not affect a receiver’s
  699  power under subsection (2) to adopt the contract.
  700         (5)A receiver’s right to possess or use receivership
  701  property pursuant to an executory contract terminates on
  702  rejection of the contract under subsection (2). Rejection is a
  703  breach of the contract effective immediately before appointment
  704  of the receiver. A claim for damages for rejection of the
  705  contract must be submitted by the later of:
  706         (a)The time set for submitting a claim in the
  707  receivership; or
  708         (b)Thirty days after the court approves the rejection.
  709         (6)If at the time a receiver is appointed, the owner has
  710  the right to assign an executory contract relating to
  711  receivership property under the laws of this state other than
  712  this chapter, the receiver may assign the contract with court
  713  approval.
  714         (7)If a receiver rejects an executory contract for the
  715  sale of receivership property that is real property in
  716  possession of the purchaser or a real-property timeshare
  717  interest pursuant to subsection (2), the purchaser may:
  718         (a)Treat the rejection as a termination of the contract,
  719  and in that case the purchaser has a lien on the property for
  720  the recovery of any part of the purchase price the purchaser
  721  paid; or
  722         (b)Retain the purchaser’s right to possession under the
  723  contract. If the purchaser retains his or her right to
  724  possession pursuant to this paragraph, the purchaser must
  725  continue to perform all obligations arising under the contract
  726  and may offset any damages caused by nonperformance of an
  727  obligation of the owner after the date of the rejection, but the
  728  purchaser does not have a right or claim against other
  729  receivership property or the receiver on account of the damages.
  730         (8)A receiver may not reject an unexpired lease of real
  731  property under which the owner is the landlord if:
  732         (a)The tenant occupies the leased premises as the tenant’s
  733  primary residence;
  734         (b)The receiver was appointed at the request of a person
  735  other than a mortgagee; or
  736         (c)The receiver was appointed at the request of a
  737  mortgagee and:
  738         1.The lease is superior to the lien of the mortgage;
  739         2.The tenant has an enforceable agreement with the
  740  mortgagee or the holder of a senior lien under which the
  741  tenant’s occupancy will not be disturbed as long as the tenant
  742  performs its obligations under the lease;
  743         3.The mortgagee has consented to the lease, either in a
  744  signed record or by its failure to timely object that the lease
  745  violated the mortgage; or
  746         4.The terms of the lease were commercially reasonable at
  747  the time the lease was agreed to and the tenant did not know or
  748  have reason to know that the lease violated the mortgage.
  749         714.18Defenses and immunities of receiver.—
  750         (1)A receiver is entitled to all defenses and immunities
  751  provided by the laws of this state other than this chapter for
  752  an act or omission within the scope of the receiver’s
  753  appointment.
  754         (2)A receiver may be sued personally for an act or
  755  omission in administering receivership property only with
  756  approval of the court that appointed the receiver.
  757         714.19Interim report of receiver.—A receiver may file or,
  758  if ordered by the court, shall file an interim report that
  759  includes:
  760         (1)The activities of the receiver since appointment or a
  761  previous report;
  762         (2)Receipts and disbursements, including a payment made or
  763  proposed to be made to a professional engaged by the receiver;
  764         (3)Receipts and dispositions of receivership property;
  765         (4)Fees and expenses of the receiver and, if not filed
  766  separately, a request for approval of payment of the fees and
  767  expenses; and
  768         (5)Any other information required by the court.
  769         714.20Notice of appointment; claim against receivership;
  770  distribution to creditors.—
  771         (1)Except as otherwise provided in subsection (6), a
  772  receiver shall give notice of appointment of the receiver to
  773  creditors of the owner by:
  774         (a)Deposit for delivery through first-class mail or other
  775  commercially reasonable delivery method to the last known
  776  address of each creditor; and
  777         (b)Publication as directed by the court.
  778         (2)Except as otherwise provided in subsection (6), the
  779  notice required under subsection (1) must specify the date by
  780  which each creditor holding a claim against the owner which
  781  arose before appointment of the receiver must submit the claim
  782  to the receiver. The date specified must be at least 90 days
  783  after the later of notice under paragraph (1)(a) or last
  784  publication under paragraph (1)(b). The court may extend the
  785  period for submitting the claim. Unless the court orders
  786  otherwise, a claim that is not timely submitted is not entitled
  787  to a distribution from the receivership.
  788         (3)A claim submitted by a creditor under this section
  789  must:
  790         (a)State the name and address of the creditor;
  791         (b)State the amount and basis of the claim;
  792         (c)Identify any property securing the claim;
  793         (d)Be signed by the creditor under penalty of perjury; and
  794         (e)Include a copy of any record on which the claim is
  795  based.
  796         (4)An assignment by a creditor of a claim against the
  797  owner is effective against the receiver only if the assignee
  798  gives timely notice of the assignment to the receiver in a
  799  signed record.
  800         (5)At any time before entry of an order approving a
  801  receiver’s final report, the receiver may file with the court an
  802  objection to a claim of a creditor, stating the basis for the
  803  objection. The court shall allow or disallow the claim according
  804  to the laws of this state other than this chapter.
  805         (6)If the court concludes that receivership property is
  806  likely to be insufficient to satisfy claims of each creditor
  807  holding a perfected lien on the property, the court may order
  808  that:
  809         (a)The receiver need not give notice under subsection (1)
  810  of the appointment to all creditors of the owner, but only such
  811  creditors as the court directs; and
  812         (b)Unsecured creditors need not submit claims under this
  813  section.
  814         (7)Subject to s. 714.21:
  815         (a)A distribution of receivership property to a creditor
  816  holding a perfected lien on the property must be made in
  817  accordance with the creditor’s priority under the laws of this
  818  state other than this chapter; and
  819         (b)A distribution of receivership property to a creditor
  820  with an allowed unsecured claim must be made as the court
  821  directs according to the laws of this state other than this
  822  chapter.
  823         714.21Fees and expenses.—
  824         (1)The court may award a receiver from receivership
  825  property the reasonable and necessary fees and expenses of
  826  performing the duties of the receiver and exercising the powers
  827  of the receiver.
  828         (2)The court may order one or more of the following to pay
  829  the reasonable and necessary fees and expenses of the
  830  receivership, including reasonable attorney fees and costs:
  831         (a)A person that requested the appointment of the
  832  receiver, if the receivership does not produce sufficient funds
  833  to pay the fees and expenses; or
  834         (b) A person whose conduct justified or would have
  835  justified the appointment of the receiver under s. 714.06(1)(a).
  836         714.22Removal of receiver; replacement; termination of
  837  receivership.—
  838         (1) The court may remove a receiver for cause.
  839         (2) The court shall replace a receiver that dies, resigns,
  840  or is removed.
  841         (3) If the court finds that a receiver that resigns or is
  842  removed, or the representative of a receiver that is deceased,
  843  has accounted fully for and turned over to the successor
  844  receiver all receivership property and has filed a report of all
  845  receipts and disbursements during the service of the replaced
  846  receiver, the replaced receiver is discharged.
  847         (4) The court may discharge a receiver and terminate the
  848  court’s administration of the receivership property if the court
  849  finds that appointment of the receiver was improvident or that
  850  the circumstances no longer warrant continuation of the
  851  receivership. If the court finds that the appointment was sought
  852  wrongfully or in bad faith, the court may assess against the
  853  person that sought the appointment:
  854         (a) The fees and expenses of the receivership, including
  855  reasonable attorney fees and costs; and
  856         (b) Actual damages caused by the appointment, including
  857  reasonable attorney fees and costs.
  858         714.23Final report of receiver; discharge.—
  859         (1)Upon completion of a receiver’s duties, the receiver
  860  shall file a final report including:
  861         (a)A description of the activities of the receiver in the
  862  conduct of the receivership;
  863         (b)A list of receivership property at the commencement of
  864  the receivership and any receivership property received during
  865  the receivership;
  866         (c)A list of disbursements, including payments to
  867  professionals engaged by the receiver;
  868         (d)A list of dispositions of receivership property;
  869         (e)A list of distributions made or proposed to be made
  870  from the receivership for creditor claims;
  871         (f)If not filed separately, a request for approval of the
  872  payment of fees and expenses of the receiver; and
  873         (g)Any other information required by the court.
  874         (2)If the court approves a final report filed under
  875  subsection (1) and the receiver distributes all receivership
  876  property, the receiver is discharged.
  877         714.24Receivership in another state; ancillary
  878  proceeding.—
  879         (1)The court may appoint a receiver appointed in another
  880  state, or that person’s nominee, as an ancillary receiver with
  881  respect to property located in this state or subject to the
  882  jurisdiction of the court for which a receiver could be
  883  appointed under this chapter, if:
  884         (a)The person or nominee would be eligible to serve as
  885  receiver under s. 714.07; and
  886         (b)The appointment furthers the person’s possession,
  887  custody, control, or disposition of property subject to the
  888  receivership in the other state.
  889         (2)The court may issue an order that gives effect to an
  890  order entered in another state appointing or directing a
  891  receiver.
  892         (3)Unless the court orders otherwise, an ancillary
  893  receiver appointed under subsection (1) has the rights, powers,
  894  and duties of a receiver appointed under this chapter.
  895         714.25Effect of enforcement by mortgagee.—A request by a
  896  mortgagee for the appointment of a receiver, the appointment of
  897  a receiver, or the application by a mortgagee of receivership
  898  property or proceeds to the secured obligation does not:
  899         (1)Make the mortgagee a mortgagee in possession of the
  900  real property;
  901         (2)Make the mortgagee an agent of the owner;
  902         (3)Constitute an election of remedies which precludes a
  903  later action to enforce the secured obligation;
  904         (4)Make the secured obligation unenforceable;
  905         (5)Limit any right available to the mortgagee with respect
  906  to the secured obligation; or
  907         (6)Constitute an action under chapter 702.
  908         714.26Uniformity of application and construction.—In
  909  applying and construing this chapter, consideration must be
  910  given to the need to promote uniformity of the law with respect
  911  to its subject matter among states that have enacted a similar
  912  law.
  913         714.27Relation to electronic signatures in global and
  914  national commerce act.—This act modifies, limits, or supersedes
  915  the Electronic Signatures in Global and National Commerce Act,
  916  15 U.S.C. ss. 7001 et seq., but does not modify, limit, or
  917  supersede s. 101(c) of that act, 15 U.S.C. s. 7001(c), or
  918  authorize electronic delivery of any of the notices described in
  919  s. 103(b) of that act, 15 U.S.C. s. 7003(b).
  920         714.28Transition.—This chapter does not apply to a
  921  receivership for which the receiver was appointed before July 1,
  922  2020.
  923         Section 2. This act shall take effect July 1, 2020.