Bill Text: FL S1288 | 2011 | Regular Session | Introduced


Bill Title: Nonjudicial Foreclosure/Commercial Real Property

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1288 Detail]

Download: Florida-2011-S1288-Introduced.html
       Florida Senate - 2011                (Corrected Copy)    SB 1288
       
       
       
       By Senator Hays
       
       
       
       
       20-00722A-11                                          20111288__
    1                        A bill to be entitled                      
    2         An act relating to nonjudicial foreclosure of
    3         commercial real property; creating chapter 52, F.S.,
    4         relating to nonjudicial foreclosure of commercial real
    5         property; providing a short title; providing for
    6         applicability of provisions; providing definitions;
    7         providing for appointment of a trustee; providing for
    8         trustee initiation of foreclosure of mortgage liens;
    9         providing for objections by obligors; providing for
   10         redemption of property; providing requirements to be
   11         met before encumbered property may be sold by trustee;
   12         providing for notice of default and intent to
   13         foreclose; providing for notice and manner of sale;
   14         specifying the effect of a sale; providing for a
   15         trustee’s certificate of compliance and deed;
   16         providing for disposition of sale proceeds; providing
   17         that provisions concerning the trustee foreclosure
   18         procedure do not impair or otherwise affect a
   19         foreclosing creditor’s right to bring a judicial
   20         foreclosure action; providing for civil actions
   21         against foreclosing creditors for material failure to
   22         follow trustee foreclosure procedures; providing
   23         criminal penalties for a trustee who intentionally
   24         violates provisions concerning the trustee foreclosure
   25         procedure; providing for construction; providing for
   26         application of provisions to mortgage liens existing
   27         prior to the effective date of this act for which a
   28         foreclosure proceeding has not commenced; providing a
   29         directive to the Division of Statutory Revision;
   30         providing an effective date.
   31  
   32  Be It Enacted by the Legislature of the State of Florida:
   33  
   34         Section 1. Chapter 52, Florida Statutes, consisting of
   35  sections 52.101, 52.102, 52.103, and 52.104, is created to read:
   36                             CHAPTER 52                            
   37         NONJUDICIAL FORECLOSURE OF COMMERCIAL REAL PROPERTY       
   38         52.101 Short title; applicability.—
   39         (1) This chapter may be cited as the “Nonjudicial
   40  Foreclosure of Commercial Real Property Act.”
   41         (2) In lieu of any other foreclosure remedy that may be
   42  available under the laws of this state within the judicial
   43  system, this chapter may, at the option of the foreclosing
   44  creditor, be used to effect a foreclosure of a security
   45  instrument in commercial real property. However, if the
   46  foreclosing creditor does not elect to use this chapter to
   47  effect a foreclosure, this chapter does not modify any other
   48  foreclosure remedy available to the foreclosing creditor under
   49  the laws of this state.
   50         52.102 Definitions.—As used in this chapter, the term:
   51         (1) “Commercial real property” means real property that,
   52  when a security instrument is entered into, is used or is
   53  intended by its owner to be used other than for the personal,
   54  family, or household purposes of its owner. Residential real
   55  property on which the borrower resides is deemed commercial if
   56  it is improved, or is intended by its owner to be improved, to
   57  have more than four additional dwelling units.
   58         (2) “Debtor” means a person who is obligated, primarily or
   59  secondarily, on an obligation secured in whole or in part by
   60  commercial real property.
   61         (3) “Foreclosing creditor” means a secured creditor who is
   62  engaged in a foreclosure under this chapter.
   63         (4) “Interest holder” means a person who holds a possessory
   64  interest, other than a leasehold interest with a duration of 1
   65  year or less, in nonresidential real property in which a
   66  security interest exists.
   67         (5) “Junior interest holder” means a person who owns a
   68  legally recognized interest in real or personal property that is
   69  subordinate in priority to a security interest foreclosed under
   70  this chapter.
   71         (6) “Nonresidential real property” means commercial real
   72  property.
   73         (7) “Obligor” means a person who owes payment or other
   74  performance of an obligation, whether absolute or conditional,
   75  primary or secondary, secured under a security instrument,
   76  whether or not the security instrument imposes personal
   77  liability on the obligor. The term does not include a person
   78  whose sole interest in the property is a security interest.
   79         (8) “Personalty and fixtures” means any personal property
   80  or fixtures located on or within or affixed to a commercial real
   81  property and pledged as collateral for the credit facility in
   82  default. To the extent the lender has a perfected security
   83  interest in such collateralized personalty and fixtures, such
   84  property shall be encompassed by the term “commercial real
   85  property” and the security interest in such property shall be
   86  foreclosed in the manner set forth in this chapter.
   87         (9) “Real property” means any estate or interest in, over,
   88  or under land, including minerals, structures, fixtures, and
   89  other things that by custom, usage, or law pass with a
   90  conveyance of land though not described or mentioned in the
   91  contract of sale or instrument of conveyance. The term includes
   92  the interest of a landlord or tenant and, unless under the law
   93  of the state in which the property is located that interest is
   94  personal property, an interest in a common interest community.
   95         (10) “Secured creditor” means a creditor that has the right
   96  to foreclose a security interest in real property under this
   97  chapter.
   98         (11) “Security instrument” means a mortgage, deed of trust,
   99  security deed, contract for deed, agreement for deed, land sale
  100  contract, lease creating a security interest, or other contract
  101  or conveyance that creates or provides for an interest in real
  102  property to secure payment or performance of an obligation,
  103  whether by acquisition or retention of a lien, a lessor’s
  104  interest under a lease, or title to the real property. A
  105  security instrument may also create a security interest in
  106  personal property. If a security instrument makes a default
  107  under any other agreement a default under the security
  108  instrument, the security instrument includes the other
  109  agreement. The term includes any modification or amendment of a
  110  security instrument, and includes a lien on real property
  111  created by a record to secure an obligation owed by an owner of
  112  the real property to an association in a common interest
  113  community or under covenants running with the real property.
  114         (12) “Security interest” means an interest in real or
  115  personal property that secures payment or performance of an
  116  obligation.
  117         (13) “Trustee” means an attorney who is a member in good
  118  standing of The Florida Bar and who has been practicing law for
  119  at least 5 years or that attorney’s law firm, or a title insurer
  120  who is authorized to transact business in this state under s.
  121  624.401 and who has been authorized to transact business for at
  122  least 5 years.
  123         52.103 Procedure for trustee foreclosure of mortgage lien.
  124  This section establishes a trustee foreclosure procedure for
  125  mortgage liens and security interests in personalty and fixtures
  126  collateralizing the same obligation for which the mortgage was
  127  given.
  128         (1) APPOINTMENT OF TRUSTEE.—
  129         (a) A trustee or a substitute trustee may be appointed by a
  130  foreclosing creditor at any time by recording a notice of
  131  appointment of trustee or notice of substitution of trustee in
  132  the official records of the county or counties in which the
  133  commercial real property is located. A foreclosing creditor may
  134  appoint multiple trustees in a single appointment and any
  135  appointed trustee may be used by the foreclosing creditor
  136  regarding the trustee foreclosure of any mortgage lien.
  137         (b) A trustee shall use good faith, skill, care, and
  138  diligence in discharging all of the trustee duties under this
  139  section and shall deal honestly and fairly with all parties.
  140         (c) The recorded notice of appointment of trustee or notice
  141  of substitution of trustee shall contain the name and address of
  142  the trustee or substitute trustee and the name and address of
  143  the foreclosing creditor.
  144         (2) INITIATING TRUSTEE FORECLOSURE OF MORTGAGE LIENS.—
  145         (a) Before initiating the trustee foreclosure against
  146  commercial real property, the mortgage or an amendment to a
  147  mortgage executed by the obligor before the effective date of
  148  this section must contain a statement in substantially the
  149  following form:
  150  
  151         If the mortgagor (which term shall include the
  152         original mortgagor’s successors or assigns) fails to
  153         make timely payments under the obligation secured by
  154         this mortgage, or is otherwise deemed in uncured
  155         default of this mortgage, the lien against the
  156         mortgagor’s commercial real property created by this
  157         mortgage may be foreclosed in accordance with either a
  158         judicial foreclosure procedure or a trustee
  159         foreclosure procedure and may result in the loss of
  160         your commercial real property. If the mortgagee
  161         initiates a trustee foreclosure procedure, the
  162         mortgagor has the option to object and the mortgagee
  163         may proceed only by filing a judicial foreclosure
  164         action.
  165  
  166         (b) In order to initiate a trustee foreclosure procedure
  167  against commercial real property, the foreclosing creditor shall
  168  deliver to the trustee an affidavit sworn to, under penalties of
  169  perjury, by the creditor that identifies the obligor, the notice
  170  address of the obligor, the commercial real property, the
  171  official records book and page number in which the mortgage is
  172  recorded, the personalty and fixtures and the information
  173  regarding perfection of the security interest in such property,
  174  and the name and notice address of any holder of a junior
  175  interest in any collateral subject to foreclosure. The affidavit
  176  shall be accompanied by a title search of the commercial real
  177  property identifying any junior interest holders of record and a
  178  lien search, and the effective date of the title search and the
  179  lien search must be a date that is within 60 calendar days
  180  before the date of the affidavit. The affidavit shall also:
  181         1. State the facts that establish that the obligor has
  182  defaulted in the obligation to make a payment under a specified
  183  provision of the mortgage or is otherwise deemed in uncured
  184  default under a specified provision of the mortgage.
  185         2. Specify the amounts secured by the lien as of the date
  186  of the affidavit and a per diem amount to account for further
  187  accrual of the amounts secured by the lien.
  188         3. State that the appropriate amount of documentary stamp
  189  tax and intangible taxes has been paid upon recording of the
  190  mortgage or otherwise paid to the state.
  191         4. State that the foreclosing creditor is the holder of the
  192  note and has complied with all preconditions in the note and
  193  mortgage to determine the amounts secured by the lien and to
  194  initiate the use of the trustee foreclosure procedure.
  195         (3) OBLIGOR’S RIGHTS.—
  196         (a) The obligor may object to the foreclosing creditor’s
  197  use of the trustee foreclosure procedure for a specific default
  198  within 15 business days after receipt of notice by sending a
  199  written objection to the trustee using the objection form
  200  provided for in subsection (5), and the foreclosing creditor may
  201  proceed thereafter only with a judicial foreclosure action as to
  202  that specified default.
  203         (b) At any time before the trustee issues the certificate
  204  of sale under paragraph (7)(f), the obligor may redeem the
  205  commercial real property by paying the amounts secured by the
  206  lien in cash or certified funds to the trustee. After the
  207  trustee issues the certificate of sale, there is no right of
  208  redemption.
  209         (4) CONDITIONS TO TRUSTEE’S EXERCISE OF POWER OF SALE.—A
  210  trustee may sell an encumbered commercial real property
  211  foreclosed under this section if:
  212         (a) The trustee has received the affidavit from the
  213  foreclosing creditor under paragraph (2)(b).
  214         (b) The trustee has not received a written objection to the
  215  use of the trustee foreclosure procedure under paragraph (3)(a).
  216         (c) The commercial real property was not redeemed under
  217  paragraph (3)(b).
  218         (d) There is no lis pendens recorded and pending against
  219  the same commercial real property.
  220         (e) The trustee is in possession of the original promissory
  221  note and all renewals, modifications, or other renegotiations
  222  thereof then in effect executed by the mortgagor and secured by
  223  the mortgage lien.
  224         (f) The trustee has provided written notice of default and
  225  intent to foreclose as required under subsection (5) and a
  226  period of at least 30 calendar days has elapsed after the notice
  227  is deemed perfected under subsection (5).
  228         (g) The notice of sale required under subsection (6) has
  229  been recorded in the official records of the county in which the
  230  mortgage was recorded.
  231         (5) NOTICE OF DEFAULT AND INTENT TO FORECLOSE.—
  232         (a) In any foreclosure proceeding under this section, the
  233  trustee is required to notify the obligor of the proceeding by
  234  sending the obligor a written notice of default and intent to
  235  foreclose to the notice address of the obligor by certified
  236  mail, commercial delivery service, or delivery service permitted
  237  by the agreement between the mortgagor and the mortgagee, return
  238  receipt requested, and by first-class mail or permitted delivery
  239  service, postage prepaid, as follows:
  240         1. The notice of default and intent to foreclose shall
  241  identify the obligor, the notice address of the obligor, the
  242  legal description of the commercial real property, the nature of
  243  the default, the amounts secured by the lien, and a per diem
  244  amount to account for further accrual of the amounts secured by
  245  the lien and shall state the method by which the obligor may
  246  cure the default, including the period of time after the date of
  247  the notice of default and intent to foreclose within which the
  248  obligor may cure the default.
  249         2. The notice of default and intent to foreclose shall
  250  include an objection form with which the obligor can notify the
  251  trustee that the obligor objects to the use of the trustee
  252  foreclosure procedure by signing and returning the objection
  253  form to the trustee. The objection form shall identify the
  254  obligor, the notice address of the obligor, the commercial real
  255  property, and the return address of the trustee and shall state:
  256  
  257         The undersigned obligor exercises the obligor’s right
  258         to object to the use of the trustee foreclosure
  259         procedure contained in section 52.103, Florida
  260         Statutes.
  261  
  262  The objection is not effective unless notarized and sworn to
  263  under penalty of perjury.
  264         3. The notice of default and intent to foreclose shall also
  265  contain a statement in substantially the following form:
  266  
  267         If you fail to cure the default as set forth in this
  268         notice or take other appropriate action with regard to
  269         this foreclosure matter, you risk losing ownership of
  270         your commercial real property through the trustee
  271         foreclosure procedure established in section 52.103,
  272         Florida Statutes. You may choose to sign and send to
  273         the trustee the enclosed objection form notifying him
  274         or her of your objection to proceeding nonjudicially.
  275         You have the right to cure your default in the manner
  276         set forth in this notice at any time before the
  277         trustee’s sale of your commercial real property. You
  278         may be responsible for the difference between the
  279         amount for which the trustee can sell the property and
  280         the amount you still owe under the mortgage. A
  281         deficiency may only be established in a court of law
  282         in a proceeding separate from the trustee’s
  283         foreclosure. In any such proceeding, you will be
  284         allowed to raise the sufficiency of the trustee’s sale
  285         price as a defense to the deficiency.
  286  
  287         4. The trustee shall also mail a copy of the notice of
  288  default and intent to foreclose, without the objection form, to
  289  the notice address of any junior interest holder by certified
  290  mail, registered mail, or permitted delivery service, return
  291  receipt requested, and by first-class mail or permitted delivery
  292  service, postage prepaid.
  293         5. Notice under this paragraph is considered perfected upon
  294  the trustee receiving the return receipt bearing the signature
  295  of the obligor or junior interest holder, as applicable, within
  296  30 calendar days after the trustee sent the notice under this
  297  paragraph. Notice under this paragraph is not perfected if the
  298  notice is returned as undeliverable within 30 calendar days
  299  after the trustee sent the notice, if the trustee cannot
  300  ascertain from the receipt that the obligor or junior interest
  301  holder, as applicable, is the person who signed the receipt, or
  302  if the receipt from the obligor or junior interest holder, as
  303  applicable, is returned or refused within 30 calendar days after
  304  the trustee sent the notice.
  305         (b) If the notice required by paragraph (a) is returned as
  306  undeliverable within 30 calendar days after the trustee sent the
  307  notice, the trustee shall perform a diligent search and inquiry
  308  to obtain a different address for the obligor or junior interest
  309  holder. For purposes of this paragraph, any address known and
  310  used by the foreclosing creditor for sending regular mailings or
  311  other communications from the foreclosing creditor to the
  312  obligor or junior interest holder, as applicable, shall be
  313  included with other addresses produced from the diligent search
  314  and inquiry, if any.
  315         1. If the trustee’s diligent search and inquiry produces an
  316  address different from the notice address, the trustee shall
  317  mail a copy of the notice by certified mail, registered mail, or
  318  permitted delivery service, return receipt requested, and by
  319  first-class mail or permitted delivery service, postage prepaid,
  320  to the new address. Notice under this subparagraph is considered
  321  perfected upon the trustee receiving the return receipt bearing
  322  the signature of the obligor or junior interest holder, as
  323  applicable, within 30 calendar days after the trustee sent the
  324  notice under this subparagraph. Notice under this subparagraph
  325  is not perfected if the trustee cannot ascertain from the
  326  receipt that the obligor or junior interest holder, as
  327  applicable, is the person who signed the receipt or the receipt
  328  from the obligor or junior interest holder, as applicable, is
  329  returned refused. If the trustee does not perfect notice under
  330  this subparagraph, the trustee shall perfect service as provided
  331  in paragraph (c).
  332         2. If the trustee’s diligent search and inquiry does not
  333  locate a different address for the obligor or junior interest
  334  holder, as applicable, the trustee may perfect notice against
  335  that person as provided in paragraph (c).
  336         (c) If the notice is not perfected under subparagraph (a)5.
  337  and such notice was not returned as undeliverable, or if the
  338  notice was not perfected under subparagraph (b)1., the trustee
  339  may perfect notice by publication in a newspaper of general
  340  circulation in the county or counties in which the commercial
  341  real property is located. The notice shall appear at least once
  342  a week for 2 consecutive weeks. Notice under this paragraph is
  343  considered perfected upon completion of publication as required
  344  in this paragraph.
  345         (d) If notice is perfected under paragraph (a), the trustee
  346  shall execute an affidavit in recordable form setting forth the
  347  manner in which notice was perfected and attach the affidavit to
  348  the certificate of compliance set forth in subsection (9). The
  349  affidavit shall state the nature of the notice, the date on
  350  which the notice was mailed, the name and address on the
  351  envelope containing the notice, the manner in which the notice
  352  was mailed, and the basis for that knowledge.
  353         (e) If notice is perfected under paragraph (b), the trustee
  354  shall execute an affidavit in recordable form setting forth the
  355  manner in which notice was perfected and attach the affidavit to
  356  the certificate of compliance set forth in subsection (9). The
  357  affidavit shall state the nature of the notice, the dates on
  358  which the notice was mailed, the name and addresses on the
  359  envelopes containing the notice, the manner in which the notice
  360  was mailed, the fact that a signed receipt from the certified
  361  mail, registered mail, or permitted delivery service was timely
  362  received, and the name and address on the envelopes containing
  363  the notice.
  364         (f) If notice is perfected under paragraph (c), the trustee
  365  shall execute an affidavit in recordable form setting forth the
  366  manner in which notice was perfected and attach the affidavit to
  367  the certificate of compliance set forth in subsection (9). The
  368  affidavit shall include all the information contained in either
  369  paragraph (d) or paragraph (e), as applicable, shall state that
  370  the notice was perfected by publication after diligent search
  371  and inquiry was made for the current address for the person,
  372  shall include a statement that notice was perfected by
  373  publication, and shall set forth the information required by s.
  374  49.041 in the case of a natural person or s. 49.051 in the case
  375  of a corporation, whichever is applicable. No other action of
  376  the trustee is necessary to perfect notice.
  377         (6) NOTICE OF SALE.—
  378         (a) The notice of sale shall set forth:
  379         1. The name and notice addresses of the obligor and any
  380  junior interest holder.
  381         2. The legal description of the commercial real property
  382  and a list of all personalty and fixtures.
  383         3. The name and address of the trustee.
  384         4. A description of the default that is the basis for the
  385  foreclosure.
  386         5. The official records book and page numbers in which the
  387  mortgage is recorded.
  388         6. The amounts secured by the lien and a per diem amount to
  389  account for further accrual of the amounts secured by the lien.
  390         7. The date, location, and starting time of the trustee’s
  391  sale.
  392         8. The right of and the method by which the obligor may
  393  redeem the collateral or the right of any junior interest holder
  394  to redeem its interest up to the date the trustee issues the
  395  certificate of sale in accordance with paragraph (7)(f).
  396         (b) The trustee shall send a copy of the notice of sale
  397  within 3 business days after the date it is submitted for
  398  recording by first-class mail or permitted delivery service,
  399  postage prepaid, to the notice addresses of the obligor and any
  400  junior interest holder.
  401         (c) After the date of recording of the notice of sale,
  402  notice is not required to be given to any person claiming an
  403  interest in the commercial real property except as provided in
  404  this section. The recording of the notice of sale has the same
  405  force and effect as the filing of a lis pendens in a judicial
  406  proceeding under s. 48.23.
  407         (d) The trustee shall publish the notice of sale in a
  408  newspaper of general circulation in the county or counties in
  409  which the commercial real property is located at least once a
  410  week for 2 consecutive weeks before the date of the sale. The
  411  last publication shall occur at least 5 calendar days before the
  412  sale.
  413         (7) MANNER OF SALE.—
  414         (a) The sale of foreclosed commercial real property by the
  415  trustee in a public auction shall be held in the county in which
  416  the commercial real property is located on the date, location,
  417  and starting time designated in the notice of sale, which shall
  418  be after 9 a.m. but before 4 p.m. on a business day not less
  419  than 30 calendar days after the recording of the notice of sale.
  420  The trustee’s sale may occur online at a specific website on the
  421  Internet or in any other manner used by the clerk of the court
  422  for a judicial foreclosure sales procedure in the county or
  423  counties in which the commercial real property is located.
  424         (b) The trustee shall conduct the sale and may act as the
  425  auctioneer.
  426         (c) The foreclosing creditor and any person other than the
  427  trustee may bid at the sale. In lieu of participating in the
  428  sale, the foreclosing creditor may send the trustee written
  429  bidding instructions that the trustee shall announce as
  430  appropriate during the sale.
  431         (d) The trustee may postpone the sale from time to time. In
  432  such case, notice of postponement must be given by the trustee
  433  at the date, time, and location contained in the notice of sale.
  434  The notice of sale for the postponed sale shall be mailed as
  435  provided in paragraph (6)(b), recorded as provided in paragraph
  436  (4)(g), and published as provided in paragraph (6)(d). The
  437  effective date of the initial notice of sale as provided in
  438  paragraph (6)(b) is not affected by a postponed sale.
  439         (e) The highest bidder of the commercial real property
  440  shall pay the price bid to the trustee in cash or certified
  441  funds on the day of the sale. If the foreclosing creditor is the
  442  highest bidder, the foreclosing creditor shall receive a credit
  443  in the amount of the high bid up to the amount set forth in the
  444  notice of sale as provided in subparagraph (6)(a)6.
  445         (f) On the date of the sale and upon receipt of the cash or
  446  certified funds due from the highest bidder, the trustee shall
  447  issue to the highest bidder a certificate of sale stating that a
  448  foreclosure conforming to the requirements of this section has
  449  occurred, including the time, location, and date of the sale,
  450  that the foreclosed commercial real property was sold, the
  451  amounts secured by the lien, and the amount of the highest bid.
  452  A copy of the certificate of sale shall be mailed by certified
  453  mail, registered mail, or permitted delivery service, return
  454  receipt requested, to all persons entitled to receive a notice
  455  of sale under subsection (6).
  456         (g) Before a sale is conducted pursuant to this subsection,
  457  a junior interest holder may pursue adjudication by court, by
  458  interpleader, or in any other authorized manner reflecting any
  459  matter that is disputed by the junior interest holder.
  460         (8) EFFECT OF TRUSTEE’S SALE.—
  461         (a) A sale conducted under subsection (7) forecloses and
  462  terminates all interests of any person with notice to whom
  463  notice is given under subsection (5) and paragraph (6)(b), and
  464  of any other person claiming interests by, through, or under any
  465  such person, in the affected commercial real property. A failure
  466  to give notice to any person entitled to notice does not affect
  467  the validity of the sale as to the interests of any person
  468  properly notified. A person entitled to notice but not given
  469  notice has the rights of a person not made a defendant in a
  470  judicial foreclosure.
  471         (b) Upon issuance of a certificate of sale under paragraph
  472  (7)(f), all rights of redemption that have been foreclosed under
  473  this section shall terminate.
  474         (c) The foreclosing creditor may seek a deficiency judgment
  475  against the debtor in a judicial proceeding subsequent to the
  476  foreclosure sale. The debtor may raise the adequacy of the price
  477  obtained at the foreclosure sale as a defense to all or part of
  478  the deficiency, but has the burden of proof as to the alleged
  479  inadequacy.
  480         (d) The issuance and recording of the trustee’s deed is
  481  presumed valid and may be relied upon by third parties without
  482  actual knowledge of any irregularities in the foreclosure
  483  proceedings. If for any reason there is an irregularity in the
  484  foreclosure proceedings, a purchaser becomes subrogated to
  485  rights of the foreclosing creditor to the indebtedness that it
  486  secured to the extent necessary to reforeclose the mortgage lien
  487  in order to correct the irregularity and becomes entitled to an
  488  action de novo for the foreclosure of such mortgage lien. Any
  489  subsequent reforeclosure required to correct an irregularity may
  490  be conducted as provided in this section.
  491         (9) TRUSTEE’S CERTIFICATE OF COMPLIANCE.—
  492         (a) Within 10 calendar days after the trustee conducts a
  493  sale, the trustee shall execute and acknowledge a certificate of
  494  compliance that:
  495         1. Confirms delivery of the notice of default and intent to
  496  foreclose and attaches the affidavit required under subsection
  497  (5).
  498         2. States that the default was not cured, that the trustee
  499  did not receive any written objection under paragraph (3)(a),
  500  and that the commercial real property was not redeemed under
  501  paragraph (3)(b).
  502         3. States that the trustee is in possession of the original
  503  promissory note executed by the mortgagor and secured by the
  504  mortgage lien.
  505         4. Confirms that the notice of sale was published as
  506  required in paragraph (6)(d) and attaches an affidavit of
  507  publication for the notice of sale.
  508         5. Confirms that the notice of sale was mailed as required
  509  in paragraph (6)(b) together with a list of the parties to whom
  510  the notice of sale was mailed.
  511         (b) In furtherance of the execution of the certificate of
  512  compliance required under this subsection, the trustee may rely
  513  upon an affidavit or certification from the foreclosing creditor
  514  as to the facts and circumstances of default and failure to cure
  515  the default.
  516         (10) TRUSTEE’S DEED.—
  517         (a) The trustee’s deed shall include the name and address
  518  of the trustee, the name and address of the highest bidder, the
  519  name of the former owner, a legal description of the commercial
  520  real property, and the name and address of the preparer of the
  521  trustee’s deed. The trustee’s deed may not contain any
  522  warranties of title from the trustee. The certificate of
  523  compliance shall be attached as an exhibit to the trustee’s
  524  deed.
  525         (b) Ten calendar days after a sale, absent the prior filing
  526  and service on the trustee of a judicial action to enjoin
  527  issuance of the trustee’s deed to the commercial real property,
  528  the trustee shall:
  529         1. Cancel the original promissory note executed by the
  530  mortgagor and secured by the mortgage lien.
  531         2. Issue a trustee’s deed to the highest bidder or the
  532  highest bidder’s assignee.
  533         3. Record the trustee’s deed in the official records of the
  534  county or counties in which the commercial real property is
  535  located.
  536         (c)1. The certificate of compliance and trustee’s deed
  537  together are presumptive evidence of the truth of the matters
  538  set forth in them, and an action to set aside the sale and void
  539  the trustee’s deed may not be filed or otherwise pursued against
  540  any person acquiring the commercial real property for value.
  541         2. The trustee’s deed conveys to the highest bidder or its
  542  assignee all rights, title, and interest in the commercial real
  543  property and personalty and fixtures that the former owner had,
  544  or had the power to convey, together with all rights, title, and
  545  interest that the former owner or his or her successors in
  546  interest acquired after the execution of the mortgage.
  547         3. The issuance and recording of a trustee’s deed has the
  548  same force and effect as the issuance and recording of a
  549  certificate of title by the clerk of the court in a judicial
  550  foreclosure action.
  551         (11) DISPOSITION OF PROCEEDS OF SALE.—
  552         (a) The trustee shall apply the proceeds of the sale as
  553  follows:
  554         1. To the expenses of the sale, including compensation of
  555  the trustee.
  556         2. To the amount owed and set forth in the notice as
  557  required under subparagraph (6)(a)6.
  558         3. If there are junior interest holders, the trustee may
  559  file an action in interpleader, pay the surplus to a court of
  560  competent jurisdiction, name the competing junior interest
  561  holders, and ask the court to determine the proper distribution
  562  of the surplus. In an interpleader action, the trustee shall
  563  recover reasonable attorney’s fees and costs.
  564         4. If there are no junior interest holders, or if all
  565  junior interest holders have been paid, any surplus shall be
  566  paid to the former owner. If the trustee is unable to locate the
  567  former owner within 1 year after the sale, the surplus, if any,
  568  shall be deposited with the Chief Financial Officer as provided
  569  in chapter 717.
  570         (b) In disposing of the proceeds of the sale, the trustee
  571  may rely on the information provided in the affidavit of the
  572  foreclosing creditor under paragraph (2)(b) and, in the event of
  573  a dispute or uncertainty over such claims, the trustee has the
  574  discretion to submit the matter to adjudication by court, by
  575  interpleader, or in any other authorized manner and shall
  576  recover reasonable attorney’s fees and costs.
  577         (12) JUDICIAL FORECLOSURE ACTIONS.—The trustee foreclosure
  578  procedure established in this section does not impair or
  579  otherwise affect the foreclosing creditor’s continuing right to
  580  bring a judicial foreclosure action, in lieu of using the
  581  trustee foreclosure procedure, with respect to any mortgage
  582  lien.
  583         (13) ACTIONS FOR FAILURE TO FOLLOW TRUSTEE FORECLOSURE
  584  PROCEDURE.—
  585         (a) An action for actual damages for a material violation
  586  of this section may be brought by an obligor against the
  587  foreclosing creditor for the failure to follow the trustee
  588  foreclosure procedure contained in this section.
  589         (b) Any trustee who intentionally violates the provisions
  590  of this section concerning the trustee foreclosure procedure
  591  commits a felony of the third degree, punishable as provided in
  592  s. 775.082, s. 775.083, or s. 775.084.
  593         52.104 Miscellaneous provisions.—
  594         (1) In the event of a conflict between the provisions of
  595  this chapter and chapter 702 or other applicable law, the
  596  provisions of this chapter prevail. The procedures in this
  597  chapter must be given effect in the context of any foreclosure
  598  proceedings against commercial real properties governed by this
  599  chapter, chapter 702, chapter 718, or chapter 719.
  600         (2) In addition to assessment liens and mortgage liens
  601  arising after the effective date of this act, this chapter
  602  applies to all mortgage liens existing prior to the effective
  603  date of this act for which a foreclosure proceeding has not yet
  604  commenced.
  605         Section 2. The Division of Statutory Revision is directed
  606  to replace the phrase “the effective date of this act” wherever
  607  it occurs in this act with the date this act becomes a law.
  608         Section 3. This act shall take effect July 1, 2011.

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