Florida Senate - 2024 SB 984 By Senator Rouson 16-00520B-24 2024984__ Page 1 of 5 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to judgment liens; amending s. 55.202, 2 F.S.; authorizing a judgment lien to be acquired on 3 specified personal property and in all payment 4 intangibles and accounts of a judgment debtor whose 5 location is in this state; defining terms; providing 6 that the filing of a noncompliant judgment lien 7 certificate does not preclude the filing of a new 8 certificate that complies with specified requirements; 9 specifying the provisions that must be used to 10 determine the priority of conflicting rights between a 11 judgment lienholder and a secured party; amending s. 12 55.205, F.S.; specifying that the rights of certain 13 judgment creditors to proceed against a judgment 14 debtor’s property are subject to certain provisions; 15 providing that an account debtor may discharge certain 16 obligations through a settlement agreement; amending 17 s. 55.208, F.S.; prohibiting security interests and 18 liens on payment intangibles or accounts and the 19 proceeds thereof from taking priority over payment 20 intangibles or accounts by a judgment lien certificate 21 filed before a specified date; providing an effective 22 date. 23 24 Be It Enacted by the Legislature of the State of Florida: 25 26

Section 1. Subsections (2) and (3) of

section 55.202, 27 Florida Statutes, are amended to read: 28 55.202 Judgments, orders, and decrees; lien on personal 29

Florida Senate - 2024 SB 984 16-00520B-24 2024984__ Page 2 of 5 CODING: Words stricken are deletions; words underlined are additions. property.— 30

(2) A judgment lien may be acquired on a judgment debtor’s 31 interest in all personal property in this state subject to 32 execution under s. 56.061 and in all, including payment 33 intangibles and accounts of a judgment debtor whose location is 34 in this state as established by s. 679.3071, as those terms are 35 defined in s. 679.1021(1), and the proceeds thereof, but 36 excluding fixtures, money, negotiable instruments, and 37 mortgages. As used in this subsection, the terms “payment 38 intangibles,” “account,” and “proceeds” have the same meaning as 39 in s. 679.1021(1). 40 (

a) For payment intangibles and accounts and the proceeds 41 thereof: 42 1. The rights of a judgment lienholder under this

section 43 are subject to the rights under

chapter 679 of a secured party, 44 as defined in s. 679.1021(1), who has a prior filed financing 45 statement encumbering such payment intangibles or accounts and 46 the proceeds thereof. 47 2. This

section does not affect the obligation under s. 48 679.607(1) of an account debtor, as defined in s. 679.1021(1), 49 except as the rights and obligations under this paragraph are 50 otherwise adjudicated under applicable law in a legal proceeding 51 to which the secured party and account debtor are joined as 52 parties. 53 (

b) A judgment lien is acquired by filing a judgment lien 54 certificate in accordance with s. 55.203 with the Department of 55 State after the judgment has become final and if the time to 56 move for rehearing has lapsed, no motion for rehearing is 57 pending, and no stay of the judgment or its enforcement is then 58

Florida Senate - 2024 SB 984 16-00520B-24 2024984__ Page 3 of 5 CODING: Words stricken are deletions; words underlined are additions. in effect. A court may authorize, for cause shown, the filing of 59 a judgment lien certificate before a judgment has become final 60 when the court has authorized the issuance of a writ of 61 execution in the same matter. A judgment lien certificate not 62 filed in compliance with this subsection is permanently void and 63 of no effect but does not preclude the filing of a judgment lien 64 certificate that is in compliance with this subsection. 65 (

c) For any lien, warrant, assessment, or judgment 66 collected by the Department of Revenue, a judgment lien may be 67 acquired by filing the judgment lien certificate information or 68 warrant with the Department of State in accordance with 69 subsection (5). 70 (

d) Except as provided in s. 55.208, the effective date of 71 a judgment lien is the date, including the time of day, of 72 filing. Although no lien attaches to property, and a creditor 73 does not become a lien creditor as to liens under

chapter 679, 74 until the debtor acquires an interest in the property, priority 75 among competing judgment liens is determined in order of filing 76 date and time. 77 (

e) Except as provided in s. 55.204(3), a judgment creditor 78 may file only one effective judgment lien certificate based upon 79 a particular judgment. 80

(3) Except as otherwise provided in s. 55.208, the priority 81 of a judgment lien acquired in accordance with this

section or 82 s. 55.204(3) is established at the date and time the judgment 83 lien certificate is filed. The priority of conflicting rights 84 between a judgment lienholder under this

section and a secured 85 party as defined in s. 679.1021 must be determined as provided 86 under

chapter 679. 87

Florida Senate - 2024 SB 984 16-00520B-24 2024984__ Page 4 of 5 CODING: Words stricken are deletions; words underlined are additions.

Section 2. Subsection (1), paragraph (

a) of subsection (5), 88 and subsection (7) of

section 55.205, Florida Statutes, are 89 amended to read: 90 55.205 Effect of judgment lien.— 91

(1) A judgment creditor who has not acquired a judgment 92 lien as provided in s. 55.202 or whose lien has lapsed may 93 nevertheless proceed against the judgment debtor’s property 94 through any appropriate judicial process, subject to the 95 priority of conflicting rights under

chapter 679 of a secured 96 party as defined in s. 679.1021(1). Such judgment creditor 97 proceeding by writ of execution acquires a lien as of the time 98 of levy and only on the property levied upon. 99 (5)(

a) If the judgment debtor’s personal property, to the 100 extent not exempt from execution, includes a motor vehicle or a 101 vessel for which a Florida certificate of title has been issued, 102 a judgment lien acquired under this

section on such property not 103 yet noted on the certificate of title is valid and enforceable 104 against the judgment debtor. However, enforceability under this 105

chapter of such judgment lien against creditors or subsequent 106 purchasers is determined as provided under s. 319.27(2), or s. 107 328.14, or

chapter 679, as applicable. 108

(7) Notwithstanding the attachment of a judgment lien 109 acquired under s. 55.202 to payment intangibles or accounts and 110 the proceeds thereof, the account debtor may, absent receipt of 111 notice under s. 679.607(1)(

a) from a secured party, discharge 112 the account debtor’s obligation to pay payment intangibles or 113 accounts or the proceeds thereof by paying the judgment debtor 114 until, but not after, the account debtor is served by process 115 with a complaint or petition by the judgment creditor seeking 116

Florida Senate - 2024 SB 984 16-00520B-24 2024984__ Page 5 of 5 CODING: Words stricken are deletions; words underlined are additions. judicial relief with respect to the payment intangibles or 117 accounts. Thereafter, the account debtor may discharge the 118 account debtor’s obligation to pay payment intangibles or 119 accounts or the proceeds thereof under this

section only in 120 accordance with a settlement agreement, final order, or judgment 121 issued in such judicial process that complies with this section. 122

Section 3. Subsection (1) of

section 55.208, Florida 123 Statutes, is amended to read: 124 55.208 Effect of prior liens on payment intangibles and 125 accounts; effect of filed judgment lien on writs of execution 126 previously delivered to a sheriff.— 127

(1) A judgment lien under s. 55.202 existing before October 128 1, 2023, becomes enforceable and perfected as of October 1, 129 2023, as to payment intangibles and accounts and the proceeds 130 thereof of a judgment debtor under s. 55.202(2). Any security 131 interest or lien on payment intangibles or accounts and the 132 proceeds thereof of a judgment debtor which is enforceable and 133 perfected before October 1, 2023, continues to have the same 134 rights and priority as existed before October 1, 2023, and may 135 not take priority over be primed as to payment intangibles or 136 accounts by a judgment lien certificate filed before October 1, 137 2023. 138

Section 4. This act shall take effect July 1, 2024. 139