CS/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
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 courts 6
with judicial discretion to determine compliance with 7
specified Florida Rules of Civil Procedure; amending 8
s. 727.105, F.S.; providing for an assignee's abi lity 9
to rely on, and a defense for good faith compliance 10
with, court orders, judgments, decrees, and rules of 11
law; providing for an assignee's ability to rely on, 12
and be protected by, certain documents believed to be 13
genuine and to have been signed or pres ented by the 14
proper parties; establishing nonliability of assignee 15
when certain requirements are met; establishing an 16
exception to nonliability of an assignee when certain 17
requirements are met; limiting the assets a creditor 18
or other party in interest may pursue in an action 19
against an assignee; providing requirements for a 20
creditor or other party in interest in certain actions 21
against an assignee; providing requirements for claims 22
against an assignee or any agent or professional of 23
the assignee; providing construction; amending s. 24
727.106, F.S.; excluding certain creditors from being 25
CS/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
required to turn over assets of the estate upon notice 26
of an assignment action or proceeding; amending s. 27
727.110, F.S.; requiring negative notice in an 28
assignment action by an assignee upon the filing of a 29
notice of rejection; authorizing the court to specify 30
an effective date of rejection in its order of 31
rejection; providing an effective date. 32
33
Be It Enacted by the Legislature of the State of Florida: 34
35
Section 1. Section 727.101, Florida Statutes, is amended 36
to read: 37
727.101 Intent of chapter. —The intent of this chapter is 38
to provide a uniform procedure for the administration and 39
orderly liquidation of insolvent estates, and to ensure full 40
reporting to creditors and e qual distribution of assets 41
according to priorities as established under this chapter. 42
Section 2. Paragraph (a) of subsection (2) of section 43
727.104, Florida Statutes, is amended, and subsection (3) is 44
added to that section, to read: 45
727.104 Commencement of proceedings. — 46
(2) Within 10 days after delivery of the assignment to the 47
assignee, the assignee shall: 48
(a) Record the original assignment , with or without the 49
schedules, in the official public records of the county in which 50
CS/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
the assignor had its principal place of business and shall 51
thereafter promptly record a certified copy of the assignment , 52
with or without the schedules, in each county in this state in 53
which real property where assets of the estate are located. The 54
assignee shall promptly rec ord a certified copy of the 55
assignment, without schedules, in the land records of each 56
recording jurisdiction outside of this state in which real 57
property assets of the estate are located. If a certified copy 58
of the assignment is not acceptable for recordi ng in a 59
particular jurisdiction, the assignee shall record a lis pendens 60
or similar notice of action permitted in that jurisdiction 61
referencing the pendency of the proceedings under this chapter. 62
In either instance, the recorded original assignment, certif ied 63
copy of the assignment, or lis pendens or similar notice of 64
action shall include the legal description of any real property 65
located in the recording jurisdiction. 66
(3) The court, at its discretion, may determine proper 67
compliance with Rule 1.200, Flor ida Rules of Civil Procedure, in 68
an action filed under this 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
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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 p roceeding by a 78
governmental unit to enforce such governmental 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, attachm ent, 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 docum ent believed by the assignee to be 92
genuine and to have been 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
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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 l iability, and 107
the assignee is not personally liable to satisfy 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 assign ment 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
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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 amende d 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 in 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 sh all 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 not ice of rejection relating to 146
personal property must identify 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 t he affected property. 150
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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 rejection 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