Florida Senate - 2023 SB 600 By Senator Martin 33-00675-23 2023600__ 1 A bill to be entitled 2 An act relating to an assignment for the benefit of 3 creditors; amending s. 727.101, F.S.; revising 4 legislative intent; amending s. 727.104, F.S.; 5 revising requirements for the commencement of 6 proceedings for general assignments; providing for the 7 filing or publishing of an assignment to give notice 8 to interested parties under certain circumstances; 9 authorizing courts to determine compliance with a 10 specified rule; amending s. 727.105, F.S.; authorizing 11 assignees to rely on certain orders, judgments, 12 decrees, rules, and documents; specifying that the 13 assignee is not personally liable for certain good 14 faith compliance, acts, or omissions; limiting the 15 assets a creditor or other party in interest may 16 pursue in an action against an assignee; providing 17 requirements for a creditor or other party in interest 18 in certain actions against an assignee; providing 19 requirements for claims against an assignee or any 20 agent or professional of the assignee; providing 21 construction; amending s. 727.106, F.S.; excluding 22 certain creditors from being required to turn over 23 assets of the estate upon notice of an assignment 24 proceeding; amending s. 727.110, F.S.; requiring 25 assignees to serve a copy of a notice of rejection by 26 negative notice; authorizing the court to specify an 27 effective date of rejection in its order of rejection; 28 providing an effective date. 29 30 Be It Enacted by the Legislature of the State of Florida: 31 32 Section 1.Section 727.101, Florida Statutes, is amended to 33 read: 34 727.101Intent of chapter.The intent of this chapter is to 35 provide a uniform procedure for the administration and orderly 36 liquidation of insolvent estates, and to ensure full reporting 37 to creditors and equal distribution of assets according to 38 priorities as established under this chapter. 39 Section 2.Paragraph (a) of subsection (2) of section 40 727.104, Florida Statutes, is amended, and subsection (3) is 41 added to that section, to read: 42 727.104Commencement of proceedings. 43 (2)Within 10 days after delivery of the assignment to the 44 assignee, the assignee shall: 45 (a)1.Record the original assignment, with or without the 46 schedules, in the public records of the county in which the 47 assignor had its principal place of business and shall 48 thereafter promptly record; or 49 2.If recording in a county outside this state is not 50 possible, file or publish in a manner reasonably calculated, 51 under all the circumstances, to apprise interested parties of 52 the pendency of the assignment a certified copy of the 53 assignment, with or without the schedules, in each county where 54 assets of the estate are located. 55 56 The assignees good faith effort to record, file, or publish in 57 accordance with this paragraph is effective even if a minor 58 error or omission exists that renders the assignees effort 59 incomplete or seriously misleading. 60 (3)The court may determine proper compliance with Rule 61 1.200, Florida Rules of Civil Procedure, in an action filed 62 under this chapter, including, but not limited to, scheduling a 63 case management conference and requiring a periodic status 64 report as warranted by the circumstances of the case. 65 Section 3.Section 727.105, Florida Statutes, is amended to 66 read: 67 727.105Actions Proceedings against assignee. 68 (1)An action Proceedings may not be commenced against the 69 assignee except as provided in this chapter, but nothing 70 contained in this chapter affects any action or proceeding by a 71 governmental unit to enforce such governmental units police or 72 regulatory power. Except in the case of a consensual lienholder 73 enforcing its rights in personal property or real property 74 collateral, there shall be no levy, execution, attachment, or 75 the like in respect of any judgment against assets of the estate 76 in the possession, custody, or control of the assignee. 77 (2)The assignee may: 78 (a)Rely on any outstanding court orders, judgments, 79 decrees, and rules of law, and is not personally liable for the 80 assignees own good faith compliance with any such orders, 81 judgments, decrees, or rules of law. 82 (b)Rely on, and shall be protected in any action by, any 83 resolution, certificate, statement, opinion, report, notice, 84 consent, or other document believed by the assignee to be 85 genuine and to have been signed or presented by the proper 86 parties. 87 (3)The assignee is not personally liable for: 88 (a)The assignees good faith compliance with his or her 89 duties and responsibilities as an assignee. 90 (b)The assignees acts or omissions, except upon a finding 91 by the court presiding over an action or proceeding under this 92 chapter that the assignees acts or omissions: 93 1.Were outside the scope of his or her duties; 94 2.Were grossly negligent; or 95 3.Constitute malfeasance. 96 (4)(a)Except for matters in paragraph (3)(b), any creditor 97 or party in interest seeking to assert a claim against the 98 assignee must look only to the assignment estate assets and any 99 bond posted by the assignee to satisfy any liability, and the 100 assignee is not personally liable to satisfy any such 101 obligation. 102 (b)Any creditor or party in interest seeking to assert a 103 claim against the assignee under paragraph (3)(b) must first 104 obtain leave of the court presiding over the assignment action 105 or proceeding based on a finding set forth in paragraph (3)(b). 106 (5)Any claim against the assignee, or any agent or 107 professional of the assignee who assists the assignee in the 108 administration of the estate, must be brought before the 109 discharge of the assignee under s. 727.116 to the extent the 110 claim has accrued and is predicated upon facts that are known or 111 reasonably should have been known at the time of the discharge, 112 at which point all such claims are deemed released and forever 113 barred. 114 (6)This section does not alter or limit any other immunity 115 otherwise held by the assignee or any agent or professional of 116 the assignee who assists the assignee in the administration of 117 the estate. 118 Section 4.Section 727.106, Florida Statutes, is amended to 119 read: 120 727.106Turnover.Any person or entity, other than a 121 creditor, in possession, custody, or control of assets of the 122 estate, other than a creditor holding a lien or a right of 123 setoff or recoupment with respect to the subject assets, shall, 124 upon notice by the assignee of the assignment proceeding, 125 promptly turn such assets over to the assignee or the assignees 126 duly authorized representative. 127 Section 5.Paragraphs (a) and (b) of subsection (3) of 128 section 727.110, Florida Statutes, are amended to read: 129 727.110Actions by assignee and other parties in interest. 130 (3)As to an assignees rejection of an unexpired lease of 131 nonresidential real property or of personal property, as 132 provided under ss. 727.108(5) and 727.109(6): 133 (a)The assignee shall file a notice of rejection with the 134 court and serve a copy, by negative notice as defined in s. 135 727.103, on the owner or lessor of the affected property and, 136 for personal property, on the landlord of the premises on which 137 the property is located. A notice of rejection relating to 138 personal property must identify the affected property, the 139 address at which the affected property is located, the name and 140 telephone number of the person in possession of the affected 141 property, and the deadline for removal of the affected property. 142 (b)The effective date of the rejection is the date of 143 entry of a court order authorizing such rejection, unless the 144 court orders otherwise. 145 Section 6.This act shall take effect July 1, 2023.