2024 Legislature                                   CS for SB 984
    2         An act relating to judgment liens; amending s. 55.202,
    3         F.S.; authorizing a judgment lien to be acquired on
    4         specified personal property and in all payment
    5         intangibles and accounts of a judgment debtor whose
    6         location is in this state; defining terms; providing
    7         that the filing of a noncompliant judgment lien
    8         certificate does not preclude the filing of a new
    9         certificate that complies with specified requirements;
   10         specifying the provisions that must be used to
   11         determine the priority of conflicting rights between a
   12         judgment lienholder and a secured party; amending s.
   13         55.205, F.S.; specifying that the rights of certain
   14         judgment creditors to proceed against a judgment
   15         debtor’s property are subject to certain provisions;
   16         providing that an account debtor may discharge certain
   17         obligations through a settlement agreement; amending
   18         s. 55.208, F.S.; prohibiting security interests and
   19         liens on payment intangibles or accounts and the
   20         proceeds thereof from taking priority over payment
   21         intangibles or accounts by a judgment lien certificate
   22         filed before a specified date; providing an effective
   23         date.
   25  Be It Enacted by the Legislature of the State of Florida:
   27         Section 1. Subsections (2) and (3) of section 55.202,
   28  Florida Statutes, are amended to read:
   29         55.202 Judgments, orders, and decrees; lien on personal
   30  property.—
   31         (2) A judgment lien may be acquired on a judgment debtor’s
   32  interest in all personal property in this state subject to
   33  execution under s. 56.061 and in all, including payment
   34  intangibles and accounts of a judgment debtor whose location is
   35  in this state as established by s. 679.3071, as those terms are
   36  defined in s. 679.1021(1), and the proceeds thereof, but
   37  excluding fixtures, money, negotiable instruments, and
   38  mortgages. As used in this subsection, the terms “payment
   39  intangibles,” “account,” and “proceeds” have the same meaning as
   40  in s. 679.1021(1).
   41         (a) For payment intangibles and accounts and the proceeds
   42  thereof:
   43         1. The rights of a judgment lienholder under this section
   44  are subject to the rights under chapter 679 of a secured party,
   45  as defined in s. 679.1021(1), who has a prior filed financing
   46  statement encumbering such payment intangibles or accounts and
   47  the proceeds thereof.
   48         2. This section does not affect the obligation under s.
   49  679.607(1) of an account debtor, as defined in s. 679.1021(1),
   50  except as the rights and obligations under this paragraph are
   51  otherwise adjudicated under applicable law in a legal proceeding
   52  to which the secured party and account debtor are joined as
   53  parties.
   54         (b) A judgment lien is acquired by filing a judgment lien
   55  certificate in accordance with s. 55.203 with the Department of
   56  State after the judgment has become final and if the time to
   57  move for rehearing has lapsed, no motion for rehearing is
   58  pending, and no stay of the judgment or its enforcement is then
   59  in effect. A court may authorize, for cause shown, the filing of
   60  a judgment lien certificate before a judgment has become final
   61  when the court has authorized the issuance of a writ of
   62  execution in the same matter. A judgment lien certificate not
   63  filed in compliance with this subsection is permanently void and
   64  of no effect but does not preclude the filing of a judgment lien
   65  certificate that is in compliance with this subsection.
   66         (c) For any lien, warrant, assessment, or judgment
   67  collected by the Department of Revenue, a judgment lien may be
   68  acquired by filing the judgment lien certificate information or
   69  warrant with the Department of State in accordance with
   70  subsection (5).
   71         (d) Except as provided in s. 55.208, the effective date of
   72  a judgment lien is the date, including the time of day, of
   73  filing. Although no lien attaches to property, and a creditor
   74  does not become a lien creditor as to liens under chapter 679,
   75  until the debtor acquires an interest in the property, priority
   76  among competing judgment liens is determined in order of filing
   77  date and time.
   78         (e) Except as provided in s. 55.204(3), a judgment creditor
   79  may file only one effective judgment lien certificate based upon
   80  a particular judgment.
   81         (3) Except as otherwise provided in s. 55.208, the priority
   82  of a judgment lien acquired in accordance with this section or
   83  s. 55.204(3) is established at the date and time the judgment
   84  lien certificate is filed. The priority of conflicting rights
   85  between a judgment lienholder under this section and a secured
   86  party as defined in s. 679.1021 must be determined as provided
   87  under chapter 679.
   88         Section 2. Subsection (1), paragraph (a) of subsection (5),
   89  and subsection (7) of section 55.205, Florida Statutes, are
   90  amended to read:
   91         55.205 Effect of judgment lien.—
   92         (1) A judgment creditor who has not acquired a judgment
   93  lien as provided in s. 55.202 or whose lien has lapsed may
   94  nevertheless proceed against the judgment debtor’s property
   95  through any appropriate judicial process, subject to the
   96  priority of conflicting rights under chapter 679 of a secured
   97  party as defined in s. 679.1021(1). Such judgment creditor
   98  proceeding by writ of execution acquires a lien as of the time
   99  of levy and only on the property levied upon.
  100         (5)(a) If the judgment debtor’s personal property, to the
  101  extent not exempt from execution, includes a motor vehicle or a
  102  vessel for which a Florida certificate of title has been issued,
  103  a judgment lien acquired under this section on such property not
  104  yet noted on the certificate of title is valid and enforceable
  105  against the judgment debtor. However, enforceability under this
  106  chapter of such judgment lien against creditors or subsequent
  107  purchasers is determined as provided under s. 319.27(2), or s.
  108  328.14, or chapter 679, as applicable.
  109         (7) Notwithstanding the attachment of a judgment lien
  110  acquired under s. 55.202 to payment intangibles or accounts and
  111  the proceeds thereof, the account debtor may, absent receipt of
  112  notice under s. 679.607(1)(a) from a secured party, discharge
  113  the account debtor’s obligation to pay payment intangibles or
  114  accounts or the proceeds thereof by paying the judgment debtor
  115  until, but not after, the account debtor is served by process
  116  with a complaint or petition by the judgment creditor seeking
  117  judicial relief with respect to the payment intangibles or
  118  accounts. Thereafter, the account debtor may discharge the
  119  account debtor’s obligation to pay payment intangibles or
  120  accounts or the proceeds thereof under this section only in
  121  accordance with a settlement agreement, final order, or judgment
  122  issued in such judicial process that complies with this section.
  123         Section 3. Subsection (1) of section 55.208, Florida
  124  Statutes, is amended to read:
  125         55.208 Effect of prior liens on payment intangibles and
  126  accounts; effect of filed judgment lien on writs of execution
  127  previously delivered to a sheriff.—
  128         (1) A judgment lien under s. 55.202 existing before October
  129  1, 2023, becomes enforceable and perfected as of October 1,
  130  2023, as to payment intangibles and accounts and the proceeds
  131  thereof of a judgment debtor under s. 55.202(2). Any security
  132  interest or lien on payment intangibles or accounts and the
  133  proceeds thereof of a judgment debtor which is enforceable and
  134  perfected before October 1, 2023, continues to have the same
  135  rights and priority as existed before October 1, 2023, and may
  136  not take priority over be primed as to payment intangibles or
  137  accounts by a judgment lien certificate filed before October 1,
  138  2023.
  139         Section 4. This act shall take effect July 1, 2024.