HB 491 2023
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hb0491-00
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to an assignment for the benefit of 2
creditors; amending s. 727.101, F.S.; revising 3
legislative intent; amending s. 727.104, F.S.; 4
revising requirements for the commencement of 5
proceedings for general assignments; providing for the 6
filing or publishing of an assignment to give notice 7
to interested parties in certain instances; providing 8
courts with judicial discretion to determine 9
compliance with specified Florida Rules of Civil 10
Procedure; amending s. 727.105, F.S.; providing for an 11
assignee's ability to rely on, and a defense for good 12
faith compliance with, court orders, judgments, 13
decrees, and rules of law; providing for an assignee's 14
ability to rely on, and be protected by, certain 15
documents believed to be genuine and to have been 16
signed or presented by the proper parties; 17
establishing nonliability of assignee when certain 18
requirements are met; establishing an exception to 19
nonliability of an assignee when certain requirements 20
are met; limiting the assets a creditor or other party 21
in interest may pursue in an action against an 22
assignee; providing requirements for a creditor or 23
other party in interest in certain actions against an 24
assignee; providing requirements for claims against an 25
HB 491 2023
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
assignee or any agent or professional of the assignee; 26
providing construction; amending s. 727.106, F.S.; 27
excluding certain creditors from being required to 28
turn over assets of the estate upon notice of an 29
assignment action or proceeding; amending s. 727.110, 30
F.S.; requiring negative notice in an assignment 31
action by an assignee upon the filing of a notice of 32
rejection; authorizing the court to specify an 33
effective date of rejection in its order of rejection; 34
providing an effective date. 35
36
Be It Enacted by the Legislature of the State of Florida: 37
38
Section 1. Section 727.101, Florida Statutes, is amended 39
to read: 40
727.101 Intent of chapter. —The intent of this chapter is 41
to provide a uniform procedure for the administration and 42
orderly liquidation of insolvent estates, and to ensure full 43
reporting to creditors and equal distribution of assets 44
according to priorities as established under this chapter. 45
Section 2. Paragraph (a) of subsection (2) of section 46
727.104, Florida Statutes, is amended, and subsection (3) is 47
added to that section, to read: 48
727.104 Commencement of proceedings. — 49
(2) Within 10 days after delivery of the assignment to the 50
HB 491 2023
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
assignee, the assignee shall: 51
(a)1. Record the original assignment , with or without the 52
schedules, in the public records of the county in which the 53
assignor had its principal place of business and shall 54
thereafter promptly record ; or 55
2. If recording in a county outside the state is not 56
possible, file or publish in a manner reasonably calculated, 57
under all the circumstances, to apprise interested parties of 58
the pendency of the assignment, a certified copy of the 59
assignment, with or without the schedules, in each county where 60
assets of the estate are located. 61
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The assignee's good faith effort to record, file, or publish in 63
accordance with this paragraph is effective eve n if a minor 64
error or omission exists that renders the assignee's effort 65
incomplete or seriously misleading. 66
(3) The court, at its discretion, may determine proper 67
compliance with Rule 1.200, Florida Rules of Civil Procedure, in 68
an action filed under thi s chapter, including, but not limited 69
to, scheduling a case management conference and requiring a 70
periodic status report as warranted by the circumstances of the 71
case. 72
Section 3. Section 727.105, Florida Statutes, is amended 73
to read: 74
727.105 Actions Proceedings against assignee.— 75
HB 491 2023
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(1) An action Proceedings may not be commenced against the 76
assignee except as provided in this chapter, but nothing 77
contained in this chapter affects any action or proceeding by a 78
governmental unit to enforce such governmen tal unit's police or 79
regulatory power. Except in the case of a consensual lienholder 80
enforcing its rights in personal property or real property 81
collateral, there shall be no levy, execution, attachment, or 82
the like in respect of any judgment against assets of the estate 83
in the possession, custody, or control of the assignee. 84
(2) The assignee may: 85
(a) Rely on any outstanding court orders, judgments, 86
decrees, and rules of law, and is not personally liable for the 87
assignee's own good faith compliance with any such orders, 88
judgments, decrees, or rules of law. 89
(b) Rely on, and shall be protected in any action by, any 90
resolution, certificate, statement, opinion, report, notice, 91
consent, or other document believed by the assignee to be 92
genuine and to have bee n signed or presented by the proper 93
parties. 94
(3) The assignee is not personally liable for: 95
(a) The assignee's good faith compliance with his or her 96
duties and responsibilities as an assignee. 97
(b) The assignee's acts or omissions, except upon a 98
finding by the court presiding over an action or proceeding 99
under this chapter that the assignee's acts or omissions: 100
HB 491 2023
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1. Were outside the scope of his or her duties; 101
2. Were grossly negligent; or 102
3. Constitute malfeasance. 103
(4)(a) Except for matters in paragraph (3)(b), any 104
creditor or party in interest seeking to assert a claim against 105
the assignee must look only to the assignment estate assets and 106
any bond posted by the assignee to satisfy any liability, and 107
the assignee is not personally liable to sat isfy any such 108
obligation. 109
(b) Any creditor or party in interest seeking to assert a 110
claim against the assignee under paragraph (3)(b) must first 111
obtain leave of the court presiding over the assignment action 112
or proceeding based on a finding set forth in paragraph (3)(b). 113
(5) Any claim against the assignee, or any agent or 114
professional of the assignee who assists the assignee in the 115
administration of the estate, must be brought before the 116
discharge of the assignee under s. 727.116 to the extent the 117
claim has accrued and is predicated upon facts that are known or 118
reasonably should have been known at the time of the discharge, 119
at which point all such claims are deemed released and forever 120
barred. 121
(6) This section does not alter or limit any other 122
immunity otherwise held by the assignee or any agent or 123
professional of the assignee who assists the assignee in the 124
administration of the estate. 125
HB 491 2023
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Section 4. Section 727.106, Florida Statutes, is amended 126
to read: 127
727.106 Turnover.—Any person or entity , other than a 128
creditor, in possession, custody, or control of assets of the 129
estate, other than a creditor holding a lien or a right of 130
setoff or recoupment with respect to the subject assets, shall, 131
upon notice by the assignee of the assignment proceeding, 132
promptly turn such assets over to the assignee or the assignee's 133
duly authorized representative. 134
Section 5. Paragraphs (a) and (b) of subsection (3) of 135
section 727.110, Florida Statutes, are amended to read: 136
727.110 Actions by assignee and other parties i n 137
interest.— 138
(3) As to an assignee's rejection of an unexpired lease of 139
nonresidential real property or of personal property, as 140
provided under ss. 727.108(5) and 727.109(6): 141
(a) The assignee shall file a notice of rejection with the 142
court and serve a copy, by negative notice as defined in s. 143
727.103, on the owner or lessor of the affected property and, 144
for personal property, on the landlord of the premises on which 145
the property is located. A notice of rejection relating to 146
personal property must identi fy the affected property, the 147
address at which the affected property is located, the name and 148
telephone number of the person in possession of the affected 149
property, and the deadline for removal of the affected property. 150
HB 491 2023
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(b) The effective date of the reje ction is the date of 151
entry of a court order authorizing such rejection , unless the 152
court orders otherwise . 153
Section 6. This act shall take effect July 1, 2023. 154