SB 660 — Uniform Commercial Real Estate Receivership Act

Florida Senate - 2020 CS for SB 660 By Senator Berman 31-00405A-20 2020660__ A bill to be entitled An act relating to the UniformCommittee Commercialon RealCommerce Estateand ReceivershipTourism; Act;

and Senator Berman 577-03081-20 2020660c1 A bill to be entitled An act relating to the Uniform Commercial Real Estate Receivership Act;

authorizing certain parties to move to dissolve or modify certain orders;

requiring that such motions be heard within a specified timeframe;

authorizing certain parties to move to dissolve or modify certain orders;

requiring that such motions be heard within a specified timeframe;

specifying that the court is not bound by such nomination;

requiring that certain motions be heard within a specified timeframe;

providing for the service of notice to lienlienholders holders who are not parties to the action;

8384 Be It Enacted by the Legislature of the State of Florida:

8586 Section 1. Chapter 714, Florida Statutes, consisting of sections 714.01-714.28, is created to read:

(4) An(4) This orderchapter appointingdoes anot receiverdisplace orany providingexisting forrule injunctiveof reliefprocedural mayor notjudicial beadministration enteredof unlessthis astate bondgoverning isservice givenor bynotice, theincluding, movantwithout inlimitation, anRule amount1.070, theFlorida courtRules deemsof proper,Civil conditionedProcedure, forand theRule payment2.525, ofFlorida costsRules andof damagesJudicial sustainedAdministration, bywhich theshall adverseremain partyin iffull theforce orderand iseffect. improperly entered.

When any order appointing a receiver or providing for injunctive relief is issued on the pleading of a municipality or the state, or any officer, agency, or political subdivision thereof, the court may require or dispense with a bond, with or without surety, and conditioned in the same manner, having due regard for the public interest.

(5) If the court grants injunctive relief, the injunction must specify the reasons for entry, must describe in reasonable detail the act or acts restrained without reference to a pleading or another document, and must be binding on the parties to the action;

on the parties’ officers, agents, servants, employees, and attorneys;

and on any person in active concert or participation with the parties who receives actual notice of the injunction.

(6) A party adversely affected by an order appointing receiver or for injunctive relief may move to dissolve or modify the order at any time.

If a party moves to dissolve or modify, the motion shall be heard within 5 days after the movant applies for a hearing on the motion.

(7) This chapter does not displace any existing rule of procedural or judicial administration of this state governing service or notice, including, without limitation, Rule 1.070, Florida Rules of Civil Procedure and Rule 2.525, Florida Rules of Judicial Administration, which shall remain in full force and effect.

exclusions.— (1) This chapter applies to a receivership initiated in a court of this state for an interest in real property and any incidental personal property related to or used in operating the real property.

(c) Residential(c) Real real property ofimproved anby individualone owneror whichtwo isdwelling occupiedunits bywhich theincludes owner, the spousehomestead of thean owner,individual orowner a child or otheran dependentaffiliate of thean individual owner;

(4) This chapter does not limit an individual’s homestead and exemption rights under the laws of this state or federal law.

If the court later concludes that the appointment was justified and the order of appointment of the receiver becomes final and no longer subject to appeal, the court shall release the bond or other security.

When any order appointing a receiver or providing for injunctive relief is issued on the pleading of a municipality or the state, or any officer, agency, or political subdivision thereof, the court may require or dispense with a bond, with or without surety, and conditioned in the same manner, having due regard for public interest.

(4) A party adversely affected by an order appointing a receiver may move to dissolve or modify the order at any time.

If a party moves to dissolve or modify the order, the motion must be heard within 5 days after the movant applies for a hearing on the motion or at such time as the court determines is reasonable and appropriate under the circumstances after the movant applies for a hearing on the motion.

After notice and a hearing, the court may grant relief for cause shown.

injunction.— (1) Except as otherwise provided in subsection (4),(5), after notice and opportunity for a hearing, the court may enter an order providing for a stay, applicable to all persons, of any act, action, or proceeding:

531 The court shall include in its order a specific description of the receivership property subject to the stay, and shall include the following language in the title of the order:

“Order Staying Certain Actions to Enforce Claims against Receivership Property.” (2) Except as otherwise provided in subsection (4),(5), the court may enjoin an act, action, or proceeding against or relating to receivership property if the injunction is necessary to protect against misappropriation of, or waste relating directly to, the receivership property.

(3) A(3) If personthe whosecourt act,grants action,injunctive orrelief, proceedingthe isinjunction stayedmust orspecify enjoinedthe underreasons thisfor sectionentry mayand applymust todescribe in reasonable detail the courtact foror reliefacts fromrestrained thewithout stayreference to a pleading or injunction.other document.

The court,injunction afteris abinding hearing on notice,the mayparties grantto reliefthe foraction; cause shown.

(4) Anon orderthe underparties’ subsectionofficers, (1)agents, orservants, subsectionemployees, (2)and doesattorneys; not operate as a stay or injunction of:

and on any person who receives actual notice of the injunction and is in active concert or participation with the parties.

(4) A person whose act, action, or proceeding is stayed or enjoined under this section, or who is otherwise adversely affected by such stay or injunction, may apply to the court for relief from the stay or injunction.

If a person moves for such relief, the motion must be heard within 5 days after the movant applies for a hearing on the motion or at such time as the court determines is reasonable and appropriate under the circumstances after the movant applies for a hearing on the motion.

After notice and a hearing, the court may grant relief for cause shown.

(5) An order under subsection (1) or subsection (2) does not operate as a stay or injunction of:

(5) The(6) The court may void an act that violates a stay or injunction under this section.

(6) The(7) The scope of the receivership property subject to the stay under subsection (1) may be modified upon request of the receiver or other person, after anotice hearingand onan notice.opportunity for a hearing.