Florida 2024 Regular Session

Florida House Bill H0175 Latest Draft

Bill / Comm Sub Version Filed 01/12/2024

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