| 16 | | - | F.S.; authorizing a judgment lien to attach to 3 |
|---|
| 17 | | - | specified personal property and all payment 4 |
|---|
| 18 | | - | intangibles and accounts of a judgment debtor located 5 |
|---|
| 19 | | - | in this state; providing definitions; specifying that 6 |
|---|
| 20 | | - | the filing of a noncompliant judgment lien certificate 7 |
|---|
| 21 | | - | does not preclude the subsequent filing of a compliant 8 |
|---|
| 22 | | - | judgment lien certificate; specifying the provisions 9 |
|---|
| 23 | | - | to be used in resolving the priority of conflicting 10 |
|---|
| 24 | | - | rights between a judgment lienholder and a secured 11 |
|---|
| 25 | | - | party; amending s. 55.205, F.S.; specifying that the 12 |
|---|
| 26 | | - | rights of certain judgment debtors to proceed against 13 |
|---|
| 27 | | - | the judgment debtor's property are subject to certain 14 |
|---|
| 28 | | - | provisions; providing that an account debtor may 15 |
|---|
| 29 | | - | discharge certain obligations through a settlement 16 |
|---|
| 30 | | - | agreement; amending s. 55.208, F.S.; revising 17 |
|---|
| 31 | | - | provisions concerning the priority of certain judgment 18 |
|---|
| 32 | | - | liens; providing an effective date. 19 |
|---|
| 33 | | - | 20 |
|---|
| 34 | | - | Be It Enacted by the Legislature of the State of Florida: 21 |
|---|
| 35 | | - | 22 |
|---|
| 36 | | - | Section 1. Subsections (2) and (3) of section 55.202, 23 |
|---|
| 37 | | - | Florida Statutes, are amended to read: 24 |
|---|
| 38 | | - | 55.202 Judgments, orders, and decrees; lien on personal 25 |
|---|
| 16 | + | F.S.; specifying the provisions to be used in 3 |
|---|
| 17 | + | resolving the priority of conflicting rights between a 4 |
|---|
| 18 | + | judgment lienholder and a secured party; amending s. 5 |
|---|
| 19 | + | 55.205, F.S.; specifying that the rights of certain 6 |
|---|
| 20 | + | judgment debtors to proceed against the judgment 7 |
|---|
| 21 | + | debtor's property are subject to certain provisions; 8 |
|---|
| 22 | + | providing that an account debtor may discharge ce rtain 9 |
|---|
| 23 | + | obligations through a settlement agreement; amending 10 |
|---|
| 24 | + | s. 55.208, F.S.; revising provisions concerning the 11 |
|---|
| 25 | + | priority of certain judgment liens; providing an 12 |
|---|
| 26 | + | effective date. 13 |
|---|
| 27 | + | 14 |
|---|
| 28 | + | Be It Enacted by the Legislature of the State of Florida: 15 |
|---|
| 29 | + | 16 |
|---|
| 30 | + | Section 1. Subsection (3) of section 55.202, Florida 17 |
|---|
| 31 | + | Statutes, is amended to read: 18 |
|---|
| 32 | + | 55.202 Judgments, orders, and decrees; lien on personal 19 |
|---|
| 33 | + | property.— 20 |
|---|
| 34 | + | (3) Except as otherwise provided in s. 55.208, the 21 |
|---|
| 35 | + | priority of a judgment lien acquired in accordance with this 22 |
|---|
| 36 | + | section or s. 55.204(3) is established at the date and time the 23 |
|---|
| 37 | + | judgment lien certificate is filed. The priority of conflicting 24 |
|---|
| 38 | + | rights between a judgment lienholder under this section and a 25 |
|---|
| 51 | | - | property.— 26 |
|---|
| 52 | | - | (2) A judgment lien may be acquired on a judgment debtor's 27 |
|---|
| 53 | | - | interest in all personal property in this state subject to 28 |
|---|
| 54 | | - | execution under s. 56.061 and in all, including payment 29 |
|---|
| 55 | | - | intangibles and accounts of a judgment debtor whose location is 30 |
|---|
| 56 | | - | in this state as established by s. 679.3071 , as those terms are 31 |
|---|
| 57 | | - | defined in s. 679.1021(1), and the proceeds thereof, but 32 |
|---|
| 58 | | - | excluding fixtures, money, negotiable instruments, and 33 |
|---|
| 59 | | - | mortgages. As used in this subsection, the terms "account," 34 |
|---|
| 60 | | - | "payment intangible," and "proceeds" have the same meanings as 35 |
|---|
| 61 | | - | in s. 679.1021(1). 36 |
|---|
| 62 | | - | (a) For payment intangibles and accounts and the proceeds 37 |
|---|
| 63 | | - | thereof: 38 |
|---|
| 64 | | - | 1. The rights of a judgment lienholder under this section 39 |
|---|
| 65 | | - | are subject to the rights under chapter 679 of a secured party, 40 |
|---|
| 66 | | - | as defined in s. 679.1021(1), who has a prior filed fi nancing 41 |
|---|
| 67 | | - | statement encumbering such payment intangibles or accounts and 42 |
|---|
| 68 | | - | the proceeds thereof. 43 |
|---|
| 69 | | - | 2. This section does not affect the obligation under s. 44 |
|---|
| 70 | | - | 679.607(1) of an account debtor, as defined in s. 679.1021(1), 45 |
|---|
| 71 | | - | except as the rights and obligations under this paragraph are 46 |
|---|
| 72 | | - | otherwise adjudicated under applicable law in a legal proceeding 47 |
|---|
| 73 | | - | to which the secured party and account debtor are joined as 48 |
|---|
| 74 | | - | parties. 49 |
|---|
| 75 | | - | (b) A judgment lien is acquired by filing a judgment lien 50 |
|---|
| 51 | + | secured party, as defined in s. 679.1021(1)(ttt), must be 26 |
|---|
| 52 | + | determined as provided under chapter 679. 27 |
|---|
| 53 | + | Section 2. Subsection (1), paragraph (a) of subsection 28 |
|---|
| 54 | + | (5), and subsection (7) of section 55.205, Florida Statutes, are 29 |
|---|
| 55 | + | amended to read: 30 |
|---|
| 56 | + | 55.205 Effect of judgment lien. — 31 |
|---|
| 57 | + | (1) A judgment creditor who has not acquired a judgment 32 |
|---|
| 58 | + | lien as provided in s. 55.202 or whose lien has lapsed may 33 |
|---|
| 59 | + | nevertheless proceed against the judgment debtor's property 34 |
|---|
| 60 | + | through any appropriate judicial process , subject to the 35 |
|---|
| 61 | + | priority of conflicting rights under chapter 679 of a secured 36 |
|---|
| 62 | + | party, as defined in s. 679.1021(1)(ttt) . Such judgment creditor 37 |
|---|
| 63 | + | proceeding by writ of execution acquires a lien as of the time 38 |
|---|
| 64 | + | of levy and only on the property levied upon. 39 |
|---|
| 65 | + | (5)(a) If the judgment debtor's personal property, to the 40 |
|---|
| 66 | + | extent not exempt from executi on, includes a motor vehicle or a 41 |
|---|
| 67 | + | vessel for which a Florida certificate of title has been issued, 42 |
|---|
| 68 | + | a judgment lien acquired under this section on such property not 43 |
|---|
| 69 | + | yet noted on the certificate of title is valid and enforceable 44 |
|---|
| 70 | + | against the judgment debtor. However, enforceability under this 45 |
|---|
| 71 | + | chapter of such judgment lien against creditors or subsequent 46 |
|---|
| 72 | + | purchasers is determined as provided under s. 319.27(2) , or s. 47 |
|---|
| 73 | + | 328.14, or chapter 679, as applicable. 48 |
|---|
| 74 | + | (7) Notwithstanding the attachment of a judgment lien 49 |
|---|
| 75 | + | acquired under s. 55.202 to payment intangibles or accounts and 50 |
|---|
| 88 | | - | certificate in accordance with s. 55.203 w ith the Department of 51 |
|---|
| 89 | | - | State after the judgment has become final and if the time to 52 |
|---|
| 90 | | - | move for rehearing has lapsed, no motion for rehearing is 53 |
|---|
| 91 | | - | pending, and no stay of the judgment or its enforcement is then 54 |
|---|
| 92 | | - | in effect. A court may authorize, for cause shown, the filing of 55 |
|---|
| 93 | | - | a judgment lien certificate before a judgment has become final 56 |
|---|
| 94 | | - | when the court has authorized the issuance of a writ of 57 |
|---|
| 95 | | - | execution in the same matter. A judgment lien certificate not 58 |
|---|
| 96 | | - | filed in compliance with this subsection is permanently void and 59 |
|---|
| 97 | | - | of no effect but does not preclude the filing of a judgment lien 60 |
|---|
| 98 | | - | certificate that complies with this subsection . 61 |
|---|
| 99 | | - | (c) For any lien, warrant, assessment, or judgment 62 |
|---|
| 100 | | - | collected by the Department of Revenue, a judgment lien may be 63 |
|---|
| 101 | | - | acquired by filing the judgment lien certificate information or 64 |
|---|
| 102 | | - | warrant with the Department of State in accordance with 65 |
|---|
| 103 | | - | subsection (5). 66 |
|---|
| 104 | | - | (d) Except as provided in s. 55.208, the effective date of 67 |
|---|
| 105 | | - | a judgment lien is the date, including the time of day, of 68 |
|---|
| 106 | | - | filing. Although no lie n attaches to property, and a creditor 69 |
|---|
| 107 | | - | does not become a lien creditor as to liens under chapter 679, 70 |
|---|
| 108 | | - | until the debtor acquires an interest in the property, priority 71 |
|---|
| 109 | | - | among competing judgment liens is determined in order of filing 72 |
|---|
| 110 | | - | date and time. 73 |
|---|
| 111 | | - | (e) Except as provided in s. 55.204(3), a judgment 74 |
|---|
| 112 | | - | creditor may file only one effective judgment lien certificate 75 |
|---|
| 88 | + | the proceeds thereof, the account debtor may, absent receipt of 51 |
|---|
| 89 | + | notice under s. 679.607(1)(a) from a secured party, discharge 52 |
|---|
| 90 | + | the account debtor's obligation to pay payment intangibles or 53 |
|---|
| 91 | + | accounts or the proceeds thereof by paying the judgment debtor 54 |
|---|
| 92 | + | until, but not after, the account debtor is served by process 55 |
|---|
| 93 | + | with a complaint or petition by the judgment creditor seeking 56 |
|---|
| 94 | + | judicial relief with respect to the payment intangibles or 57 |
|---|
| 95 | + | accounts. Thereafter, the account debtor may discharge the 58 |
|---|
| 96 | + | account debtor's obligation to pay payment intangibles or 59 |
|---|
| 97 | + | accounts or the proceeds thereof under this section only in 60 |
|---|
| 98 | + | accordance with a settlement agreement, final order, or judgment 61 |
|---|
| 99 | + | issued in such judicial proce ss that complies with this section. 62 |
|---|
| 100 | + | Section 3. Subsection (1) of section 55.208, Florida 63 |
|---|
| 101 | + | Statutes, is amended to read: 64 |
|---|
| 102 | + | 55.208 Effect of prior liens on payment intangibles and 65 |
|---|
| 103 | + | accounts; effect of filed judgment lien on writs of execution 66 |
|---|
| 104 | + | previously delivered to a sheriff. — 67 |
|---|
| 105 | + | (1) A judgment lien under s. 55.202 existing before 68 |
|---|
| 106 | + | October 1, 2023, becomes enforceable and perfected as of October 69 |
|---|
| 107 | + | 1, 2023, as to payment intangibles and accounts and the proceeds 70 |
|---|
| 108 | + | thereof of a judgment debtor under s. 55.202(2). Any security 71 |
|---|
| 109 | + | interest or lien on payment intangibles or accounts and the 72 |
|---|
| 110 | + | proceeds thereof of a judgment debtor which is enforceable and 73 |
|---|
| 111 | + | perfected before October 1, 2023, continues to have the same 74 |
|---|
| 112 | + | rights and priority as existed before October 1, 2023, and may 75 |
|---|
| 125 | | - | based upon a particular judgment. 76 |
|---|
| 126 | | - | (3) Except as otherwise provided in s. 55.208, the 77 |
|---|
| 127 | | - | priority of a judgment lien acquired in accordance with this 78 |
|---|
| 128 | | - | section or s. 55.204(3) is established at the date and time the 79 |
|---|
| 129 | | - | judgment lien certificate is filed. The priority of conflicting 80 |
|---|
| 130 | | - | rights between a judgment lienholder under this section and a 81 |
|---|
| 131 | | - | secured party, as defined in s. 679.1021(1)(ttt), must be 82 |
|---|
| 132 | | - | determined as provided under chapter 679. 83 |
|---|
| 133 | | - | Section 2. Subsection (1), paragraph (a) of subsection 84 |
|---|
| 134 | | - | (5), and subsection (7) of section 55.205, Florida Statutes, are 85 |
|---|
| 135 | | - | amended to read: 86 |
|---|
| 136 | | - | 55.205 Effect of judgment lien. — 87 |
|---|
| 137 | | - | (1) A judgment creditor who has not acquired a judgment 88 |
|---|
| 138 | | - | lien as provided in s. 55.202 or whose lien has lapsed may 89 |
|---|
| 139 | | - | nevertheless proceed against the judgment debtor's property 90 |
|---|
| 140 | | - | through any appropriate judicial process , subject to the 91 |
|---|
| 141 | | - | priority of conflicting rights under chapter 679 of a secured 92 |
|---|
| 142 | | - | party, as defined in s. 679.1021(1)(ttt) . Such judgment creditor 93 |
|---|
| 143 | | - | proceeding by writ of execution acquires a lien as of the time 94 |
|---|
| 144 | | - | of levy and only on the property levied upon. 95 |
|---|
| 145 | | - | (5)(a) If the judgment debtor's personal property, to the 96 |
|---|
| 146 | | - | extent not exempt from executio n, includes a motor vehicle or a 97 |
|---|
| 147 | | - | vessel for which a Florida certificate of title has been issued, 98 |
|---|
| 148 | | - | a judgment lien acquired under this section on such property not 99 |
|---|
| 149 | | - | yet noted on the certificate of title is valid and enforceable 100 |
|---|
| 150 | | - | |
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| 151 | | - | CS/HB 175 2024 |
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| 152 | | - | |
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| 153 | | - | |
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| 154 | | - | |
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| 155 | | - | CODING: Words stricken are deletions; words underlined are additions. |
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| 157 | | - | Page 5 of 6 |
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| 158 | | - | 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 |
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| 159 | | - | |
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| 160 | | - | |
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| 161 | | - | |
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| 162 | | - | against the judgment debtor. H owever, enforceability under this 101 |
|---|
| 163 | | - | chapter of such judgment lien against creditors or subsequent 102 |
|---|
| 164 | | - | purchasers is determined as provided under s. 319.27(2) , or s. 103 |
|---|
| 165 | | - | 328.14, or chapter 679, as applicable. 104 |
|---|
| 166 | | - | (7) Notwithstanding the attachment of a judgment lien 105 |
|---|
| 167 | | - | acquired under s. 55.202 to payment intangibles or accounts and 106 |
|---|
| 168 | | - | the proceeds thereof, the account debtor may, absent receipt of 107 |
|---|
| 169 | | - | notice under s. 679.607(1)(a) from a secured party, discharge 108 |
|---|
| 170 | | - | the account debtor's obligation to pay payment intangibles or 109 |
|---|
| 171 | | - | accounts or the proceeds thereof by paying the judgment debtor 110 |
|---|
| 172 | | - | until, but not after, the account debtor is served by process 111 |
|---|
| 173 | | - | with a complaint or petition by the judgment creditor seeking 112 |
|---|
| 174 | | - | judicial relief with respect to the payment intangibles or 113 |
|---|
| 175 | | - | accounts. Thereafter, the account debtor may discharge the 114 |
|---|
| 176 | | - | account debtor's obligation to pay payment intangibles or 115 |
|---|
| 177 | | - | accounts or the proceeds thereof under this section only in 116 |
|---|
| 178 | | - | accordance with a settlement agreement, final order, or judgment 117 |
|---|
| 179 | | - | issued in such judicial proces s that complies with this section. 118 |
|---|
| 180 | | - | Section 3. Subsection (1) of section 55.208, Florida 119 |
|---|
| 181 | | - | Statutes, is amended to read: 120 |
|---|
| 182 | | - | 55.208 Effect of prior liens on payment intangibles and 121 |
|---|
| 183 | | - | accounts; effect of filed judgment lien on writs of execution 122 |
|---|
| 184 | | - | previously delivered to a sheriff. — 123 |
|---|
| 185 | | - | (1) A judgment lien under s. 55.202 existing before 124 |
|---|
| 186 | | - | October 1, 2023, becomes enforceable and perfected as of October 125 |
|---|
| 187 | | - | |
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| 188 | | - | CS/HB 175 2024 |
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| 189 | | - | |
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| 190 | | - | |
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| 191 | | - | |
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| 192 | | - | CODING: Words stricken are deletions; words underlined are additions. |
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| 193 | | - | hb0175-01-c1 |
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| 194 | | - | Page 6 of 6 |
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| 195 | | - | 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 |
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| 196 | | - | |
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| 197 | | - | |
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| 198 | | - | |
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| 199 | | - | 1, 2023, as to payment intangibles and accounts and the proceeds 126 |
|---|
| 200 | | - | thereof of a judgment debtor under s. 55.202(2). A ny security 127 |
|---|
| 201 | | - | interest or lien on payment intangibles or accounts and the 128 |
|---|
| 202 | | - | proceeds thereof of a judgment debtor which is enforceable and 129 |
|---|
| 203 | | - | perfected before October 1, 2023, continues to have the same 130 |
|---|
| 204 | | - | rights and priority as existed before October 1, 2023, and m ay 131 |
|---|
| 205 | | - | not take priority over be primed as to payment intangibles or 132 |
|---|
| 206 | | - | accounts by a judgment lien certificate filed before October 1, 133 |
|---|
| 207 | | - | 2023. 134 |
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| 208 | | - | Section 4. This act shall take effect upon becoming a law. 135 |
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| 125 | + | not take priority over be primed as to payment intangibles or 76 |
|---|
| 126 | + | accounts by a judgment lien certificate filed before October 1, 77 |
|---|
| 127 | + | 2023. 78 |
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| 128 | + | Section 4. This act shall take effect upon becoming a law. 79 |
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