HB 1445

1	A bill to be entitled
2	An act relating to debts and debtors and administration of
3	insolvent estates; amending s. 222.25, F.S.; providing
4	that a debtor's personal property of a specified value is
5	exempt from legal process if the debtor does not receive a
6	homestead exemption; amending s. 727.103, F.S.; revising
7	definitions; amending s. 727.104, F.S.; revising
8	requirements for commencement of proceedings; specifying
9	forms for verification of assignment and schedules by
10	assignor and acceptance by assignee; amending s. 727.105,
11	F.S.; revising requirements for proceedings against an
12	assignee; amending s. 727.108, F.S.; revising and
13	expanding the duties of assignees; amending s. 727.109,
14	F.S.; revising and expanding powers of a court in certain
15	actions; amending s. 727.110, F.S.; conforming cross-
16	references; amending s. 727.111, F.S.; revising
17	requirements for notices of assignments; amending s.
18	727.112, F.S.; providing limitations on certain claims for
19	damages; amending s. 727.113, F.S.; providing additional
20	requirements for filing objections to claims; amending s.
21	727.114, F.S.; revising requirements and criteria for
22	priority of claims; providing for enforceability of
23	subordination agreements under certain circumstances;
24	providing for subordinating certain claims for damages for
25	rescission; providing an exception; providing an effective
26	date.
27
28	Be It Enacted by the Legislature of the State of Florida:
29
30	Section 1.  Subsection (4) is added to section 222.25,
31	Florida Statutes, to read:
32	222.25  Other individual property exempt from legal
33	process.--The following property is exempt from attachment,
34	garnishment, or other legal process:
35	(4)  A debtor's interest in personal property, not to
36	exceed $4,000, if the debtor does not claim or receive the
37	benefits of a homestead exemption under s. 4, Art. X of the
38	State Constitution.
39	Section 2.  Section 727.103, Florida Statutes, is amended
40	to read:
41	727.103  Definitions.--As used in this chapter, unless the
42	context requires a different meaning, the term:
43	(1)  "Asset" means a legal or equitable interest of the
44	assignor in property, which shall include anything that may be
45	the subject of ownership, whether real or personal, tangible or
46	intangible, including claims and causes of action, whether
47	arising by contract or in tort, wherever located and by whomever
48	held at the date of the assignment, except property exempt by
49	law from forced sale.
50	(2)  "Assignee" means a natural person solely in such
51	person's capacity as an assignee for the benefit of creditors
52	under the provisions of this chapter, which assignee shall not
53	be a creditor or an equity security holder or have any interest
54	adverse to the interest of the estate.
55	(3)  "Assignor" means the person or entity which has
56	executed and delivered the assignment to the assignee.
57	(4)  "Assignment" means an assignment for the benefit of
58	creditors made under this chapter.
59	(5)  "Claims bar date" means the date which is 120 days
60	after the date on which the petition is filed with the court.
61	(6)  "Consensual lienholder" means a creditor that has been
62	granted a security interest or lien in personal property or real
63	property of the assignor prior to the date on which a petition
64	is filed with the court and whose security interest or lien has
65	been perfected in accordance with applicable law.
66	(7)(5)  "Court" means the circuit court where the petition
67	is filed in accordance with s. 727.104(2).
68	(8)(6)  "Creditor" means any person having a claim against
69	the assignor, whether such claim is contingent, liquidated,
70	unliquidated, or disputed.
71	(9)(7)  "Estate" means all of the assets of the assignor.
72	(10)(8)  "Filing date" means the date upon which the
73	original petition is filed in accordance with s. 727.104(2).
74	(11)(9)  "Lien" means a charge against or an interest in
75	property to secure payment of a debt or performance of an
76	obligation, and includes a security interest created by
77	agreement, a judicial lien obtained by legal or equitable
78	process or proceedings, a common-law lien, or a statutory lien.
79	(12)(10)  "Liquidation value" means the value in cash
80	obtainable upon a forced sale of assets after payment of valid
81	liens encumbering said assets.
82	(13)(11)  "Petition" means the initial document filed with
83	the court, as set forth in s. 727.104(2), establishing the
84	court's jurisdiction under this chapter.
85	Section 3.  Subsection (1) of section 727.104, Florida
86	Statutes, is amended to read:
87	727.104  Commencement of proceedings.--
88	(1)(a)  An irrevocable assignment and schedules shall be
89	made in writing, containing the name and address of the assignor
90	and assignee and providing for an equal distribution of the
91	estate according to the priorities set forth in s. 727.114.
92	(b)  The assignment shall be in substantially the following
93	form:
94
95	ASSIGNMENT
96
97	ASSIGNMENT, made this _____ day of _____,   (year)  , between
98	_____, with a principal place of business at _____, hereinafter
99	"assignor," and _____, whose address is _____, hereinafter
100	"assignee."
101	WHEREAS, the assignor has been engaged in the business of
102	__________;
103	WHEREAS, the assignor is indebted to creditors, as set
104	forth in Schedule A annexed hereto, is unable to pay its debts
105	as they become due, and is desirous of providing for the payment
106	of its debts, so far as it is possible by an assignment of all
107	of its assets for that purpose.
108	NOW, THEREFORE, the assignor, in consideration of the
109	assignee's acceptance of this assignment, and for other good and
110	valuable consideration, hereby grants, assigns, conveys,
111	transfers, and sets over, unto the assignee, her or his
112	successors and assigns, all of its assets, except such assets as
113	are exempt by law from levy and sale under an execution,
114	including, but not limited to, all real property, fixtures,
115	goods, stock, inventory, equipment, furniture, furnishings,
116	accounts receivable, bank deposits, cash, promissory notes, cash
117	value and proceeds of insurance policies, claims and demands
118	belonging to the assignor, and all books, records, and
119	electronic data pertaining to all such assets, wherever such
120	assets may be located, hereinafter the "estate," as which assets
121	are, to the best knowledge and belief of the assignor, set forth
122	on Schedule B annexed hereto.
123	The assignee shall take possession of and protect and
124	preserve all such assets and administer the estate in accordance
125	with the provisions of chapter 727, Florida Statutes, and shall
126	liquidate the assets of the estate with reasonable dispatch and
127	convert the estate into money, collect all claims and demands
128	hereby assigned as may be collectible, and pay and discharge all
129	reasonable expenses, costs, and disbursements in connection with
130	the execution and administration of this assignment from the
131	proceeds of such liquidations and collections.
132	The assignee shall then pay and discharge in full, to the
133	extent that funds are available in the estate after payment of
134	administrative expenses, costs, and disbursements, all of the
135	debts and liabilities now due from the assignor, including
136	interest on such debts and liabilities. If funds of the estate
137	shall not be sufficient to pay such debts and liabilities in
138	full, then the assignee shall pay from funds of the estate such
139	debts and liabilities, on a pro rata basis and in proportion to
140	their priority as set forth in s. 727.114, Florida Statutes.
141	In the event that all debts and liabilities are paid in
142	full, any funds of the estate remaining shall be returned to the
143	assignor.
144	To accomplish the purposes of this assignment, the assignor
145	hereby appoints the assignee its true and lawful attorney,
146	irrevocable, with full power and authority to do all acts and
147	things which may be necessary to execute the assignment hereby
148	created; to demand and recover from all persons all assets of
149	the estate; to sue for the recovery of such assets; to execute,
150	acknowledge, and deliver all necessary deeds, instruments, and
151	conveyances; and to appoint one or more attorneys under her or
152	him to assist the assignee in carrying out her or his duties
153	hereunder.
154	The assignor hereby authorizes the assignee to sign the
155	name of the assignor to any check, draft, promissory note, or
156	other instrument in writing which is payable to the order of the
157	assignor, or to sign the name of the assignor to any instrument
158	in writing, whenever it shall be necessary to do so, to carry
159	out the purpose of this assignment.
160	The assignee hereby accepts the trust created by the
161	assignment, and agrees with the assignor that the assignee will
162	faithfully and without delay carry out her or his duties under
163	the assignment.
	__________Assignor
164
	__________Assignee
165
	STATE OF FLORIDACOUNTY OF __________
166
	STATE OF FLORIDACOUNTY OF __________
167
168	The foregoing assignment was acknowledged before me this
169	_____ day of _____,   (year)  , by _____, as assignor, and by
170	_____, as assignee, for the purposes therein expressed.
171
172	(Signature of Notary Public - State of Florida)
173	(Print, Type, or Stamp Commissioned Name of Notary Public)
174
175	Personally Known _____ OR Produced Identification _____
176
177	Type of Identification Produced_______________
178	(c)  The assignment shall have annexed thereto as Schedule
179	A a true list of all of the assignor's known creditors, their
180	mailing addresses, the amount and nature of their claims, and
181	whether their claims are disputed; and as Schedule B a true list
182	of all assets of the estate, including the estimated liquidation
183	value of the assets, their location, and, if real property, a
184	legal description thereof, as of the date of the assignment.
185	(d)  The schedules shall be in substantially the following
186	forms:
187
	SCHEDULE A--CREDITOR LIST
188
	1.  List all secured creditors showing:
189
	Name Address Amount Collateral Whether or not disputed
190
	2.  List all wages owed showing:
191
	Name Address Amount Whether or not disputed
192
	3.  Consumer deposits:
193
	Name Address Amount Whether or not disputed
194
	4.  List all taxes owed showing:
195
	Name Address Amount Whether or not disputed
196
	5.  List all unsecured claims showing:
197
	Name Address Amount Whether or not disputed
198
	6.  List all owners or shareholders showing:
199
	Name Address Amount Whether or not disputed
200
	7.  List all pending litigation and opposing counsel of record
201
	Style Parties Opposing Counsel of Record
202
203
204	SCHEDULE B--LIST OF ASSETS
205
206	List each category of assets and for each give approximate value
207	obtainable for the asset on the date of assignment, and address
208	where asset is located.
209
210	I.  Nonexempt Property
211
	Description and Location Liquidation Value at Date of Assignment
212
213	1.  Legal description and street address of real estate,
214	including leasehold interests:
215	2.  Fixtures:
216	3.  Cash and bank accounts:
217	4.  Inventory:
218	5.  Accounts receivable:
219	6.  Equipment:
220	7.  Prepaid expenses, including deposits, insurance, rents, and
221	utilities:
222	8.  Other, including loans to third parties, claims, and choses
223	in action:
224
225	II.  Exempt Property
226
	Description and Location Liquidation Value at Date of Assignment
227
228	(e)  The assignment and schedules shall be duly verified
229	upon oath by the assignor, and accepted by the assignee under
230	oath, in substantially the following form:.
231
232	VERIFICATION OF ASSIGNMENT
233	AND SCHEDULES BY ASSIGNOR
234
235	The undersigned, [Name], [Position with Assignor] of
236	[Assignor], hereby verifies the Assignment (the "Assignment") of
237	all of its rights, title and interest in and to all of its
238	assets, as indicated on the attached Schedules to that certain
239	Assignment as filed with this Court on ____________, and further
240	verifies each of the facts set forth in the Schedules annexed to
241	the Assignment to the best of my knowledge and belief.
242
243	_________________________________________________________
244	_________________________[Name], [Position with Assignor]
245
246
247	STATE OF FLORIDA__________)
248	__________________________) SS:
249	COUNTY OF [_____________]_)
250
251
252	Sworn to and subscribed before me this ____ day of ________.
253	___________________________________
254	NOTARY PUBLIC,
255	STATE OF FLORIDA AT LARGE
256
257	Print Name:________________________
258	Commission No:_____________________
259	Commission Expires:________________
260
261	Personally known__________________________________
262	or Produced Identification________________________
263	Type of Identification Produced___________________
264
265
266	ACCEPTANCE BY ASSIGNEE
267
268	The undersigned, [Assignee], the Assignee herein, duly
269	acknowledges that the Assignee accepts delivery of the within
270	Assignment and that he or she will duly perform the duties
271	imposed upon the Assignee pursuant to Florida Statutes, Chapter
272	727.
273
274
275	________________________________
276	[Assignee]
277
278	STATE OF FLORIDA__________)
279	__________________________) SS:
280	COUNTY OF [_____________]_)
281
282
283	Sworn to and subscribed before me this _____ day of _______.
284
285
286	___________________________________
287	NOTARY PUBLIC,
288	STATE OF FLORIDA AT LARGE
289
290	Print Name:________________________
291	Commission No:_____________________
292	Commission Expires:________________
293
294	Personally known_____________________________
295	or Produced Identification___________________
296	Type of Identification Produced______________
297
298	Section 4.  Section 727.105, Florida Statutes, is amended
299	to read:
300	727.105  Proceedings against assignee.--No proceeding may
301	be commenced against the assignee except as provided in this
302	chapter, but nothing contained herein shall affect any action or
303	proceeding by a governmental unit to enforce such governmental
304	unit's police or regulatory power. Except in the case of a
305	consensual lienholder secured creditor enforcing its rights in
306	personal property or real property collateral under chapter 679,
307	there shall be no levy, execution, attachment, or the like in
308	respect of any judgment against assets of the estate, other than
309	real property, in the possession, custody, or control of the
310	assignee.
311	Section 5.  Section 727.108, Florida Statutes, is amended
312	to read:
313	727.108  Duties of assignee.--The assignee shall:
314	(1)  Collect and reduce to money the assets of the estate,
315	whether by suit in any court of competent jurisdiction or by
316	public or private sale, including, but not limited to,
317	prosecuting any tort claims or causes of action that were
318	previously held by the assignor, regardless of any generally
319	applicable law concerning the nonassignability of tort claims or
320	causes of action.
321	(a)  In respect of the estate's claims and causes of
322	action, the assignee may prosecute such claims or causes of
323	action as provided in this subsection or sell and assign, in
324	whole or in part, such claims or causes of action to another
325	person or entity on such terms as the assignee determines are in
326	the best interest of the estate pursuant to s. 727.111(4).
327	(b)  In an action in any court by the assignee, or the
328	first immediate transferee of the assignee, other than an
329	affiliate or insider of the assignor, against any defendant to
330	assert a claim or chose in action of the estate, the claim shall
331	not be subject to, and any remedy shall not be limited by, any
332	defense based on the assignor's acquiescence, cooperation, or
333	participation in the wrongful act by the defendant which forms
334	the basis of such claim or chose in action.;
335	(2)  Within 30 days after the filing date, examine the
336	assignor, under oath, concerning the acts, conduct, assets,
337	liabilities, and financial condition of the assignor or any
338	matter related to the assignee's administration of the estate,
339	unless excused by the court for good cause shown.;
340	(3)  Give notice to creditors of all matters concerning the
341	administration of the estate, pursuant to the provisions of s.
342	727.111.;
343	(4)  Conduct the business of the assignor for a limited
344	period not to exceed 14 calendar days if in the best interest of
345	the estate, or for a longer period periods, if in the best
346	interest of the estate, upon notice and until such time as an
347	objection, if any, is sustained by the court, provided that the
348	assignee shall not operate the business of the assignor for a
349	period of longer than 45 calendar days without a court order
350	authorizing such operation if an objection by a party in
351	interest is interposed to the assignee's motion for authority to
352	operate the assignor's business. authorization of the court;
353	(5)  To the extent reasonable in the exercise of the
354	assignee's business judgment, reject an unexpired lease of
355	nonresidential real property or of personal property under which
356	the assignor is the lessee.
357	(6)(5)  To the extent reasonable and necessary, pay
358	administrative expenses of the estate, subject, however, to s.
359	727.114(1)(a).;
360	(7)(6)  To the extent necessary, employ at the expense of
361	the estate one or more appraisers, auctioneers, accountants,
362	attorneys, or other professional persons, to assist the assignee
363	in carrying out his or her duties under this chapter.;
364	(8)(7)  Keep regular accounts and furnish such information
365	concerning the estate as may be reasonably requested by
366	creditors or other parties in interest.;
367	(9)(8)  File with the court an interim report of receipts
368	and disbursements within 6 months after the filing date unless
369	excused by the court or unless the estate has been sooner
370	distributed in full.;
371	(10)(9)  Examine the validity and priority of all claims
372	against the estate.;
373	(11)(10)  Abandon assets to duly perfected secured or lien
374	creditors, where, after due investigation, he or she determines
375	that the estate has no equity in such assets or such assets are
376	burdensome to the estate or are of inconsequential value and
377	benefit to the estate.;
378	(12)(11)  Pay dividends and secured or priority claims as
379	often as is compatible with the best interests of the estate and
380	close the estate as expeditiously as possible.; and
381	(13)(12)  File with the court a final report of all
382	receipts and disbursements and file an application for his or
383	her discharge pursuant to the provisions of s. 727.116.
384	Section 6.  Section 727.109, Florida Statutes, is amended
385	to read:
386	727.109  Power of the court.--The court shall have power
387	to:
388	(1)  Enforce all provisions of this chapter.;
389	(2)  Set, approve, or reconsider the amount of the
390	assignee's bond.;
391	(3)  Upon notice, and hearing if requested, authorize the
392	business of the assignor to be conducted for limited periods by
393	the assignee for a period longer than 14 calendar days, if in
394	the best interest of the estate.;
395	(4)  Allow or disallow claims against the estate and
396	determine their priority and establish a deadline, upon motion
397	by the assignee, for the filing of all claims against the
398	assignment estate arising from and after the date on which the
399	assignor's petition for assignment was filed with the court,
400	which deadline shall occur not less than 30 days prior to notice
401	by mail of the order establishing such deadline.;
402	(5)  Determine any claims of exemption by the assignor, if
403	disputed.;
404	(6)  Authorize the assignee to reject an unexpired lease of
405	nonresidential real property or of personal property under which
406	the assignor is the lessee pursuant to s. 727.108(5).
407	(7)  Upon notice as provided pursuant to s. 727.111 to all
408	creditors and consensual lienholders, hear and determine a
409	motion made by the assignee for approval of a proposed sale of
410	assets of the estate other than in the ordinary course of
411	business, or the compromise or settlement of a controversy, and
412	enter an order granting such motion notwithstanding the lack of
413	objection to such motion if the assignee reasonably believes
414	that such order is necessary to proceed with the action
415	contemplated by the motion.
416	(8)(6)  Hear and determine any of the following actions
417	brought by the assignee, which she or he is hereby empowered to
418	maintain:
419	(a)  Enforce the turnover of assets of the estate pursuant
420	to s. 727.106.;
421	(b)  Determine the validity, priority, and extent of a lien
422	or other interests in assets of the estate, or to subordinate or
423	avoid an unperfected security interest pursuant to the
424	assignee's rights as a lien creditor under s. 679.301.;
425	(c)  Avoid any conveyance or transfer void or voidable by
426	law.;
427	(9)(7)  Approve the assignee's final report and interim and
428	final distributions to creditors.;
429	(10)(8)  Approve reasonable fees and the reimbursement of
430	expenses for the assignee and all professional persons retained
431	by the assignee, upon objection of a party in interest or upon
432	the court's own motion.;
433	(11)(9)  Hear and determine any motion brought by a party
434	in interest or by the court to close the estate after the
435	passage of 1 year from the date of filing of the petition.;
436	(12)(10)  Discharge the assignee and the assignee's surety
437	from liability upon matters included in the assignee's final
438	report.;
439	(13)(11)  Reopen estates for cause shown.;
440	(14)(12)  Punish by contempt any failure to comply with the
441	provisions of this chapter or any order of the court made
442	pursuant to this chapter.; and
443	(15)(13)  Exercise such other and further powers as are
444	necessary to enforce or carry out the provisions of this
445	chapter.
446	Section 7.  Subsection (1) of section 727.110, Florida
447	Statutes, is amended to read:
448	727.110  Actions by assignee and other parties in
449	interest.--
450	(1)  All matters requiring court authorization under this
451	chapter shall be brought by motion, except for the following
452	matters, which shall be brought by supplemental proceeding, as
453	provided in subsection (2):
454	(a)  An action by the assignee to recover money or other
455	assets of the estate;
456	(b)  An action by the assignee to determine the validity,
457	priority, or extent of a lien or other interest in property or
458	to subordinate or avoid an unperfected security interest under
459	s. 727.109(8)(6)(b); and
460	(c)  An action by the assignee to avoid any conveyance or
461	transfer void or voidable by law under s. 727.109(8)(6)(c).
462	Section 8.  Subsections (4) and (8) of section 727.111,
463	Florida Statutes, are amended to read:
464	727.111  Notice.--
465	(4)  The assignee shall give the assignor and all creditors
466	not less than 20 days' notice by mail of a proposed sale of
467	assets of the estate other than in the ordinary course of
468	business, the assignee's continued operation of the assignor's
469	business for a period of longer than 14 calendar days, the
470	compromise or settlement of a controversy, and the payment of
471	fees and expenses to the assignee and to professional persons
472	employed by the assignee pursuant to s. 727.108(7)(6). Any and
473	all objections to the proposed action must be filed and served
474	upon the assignee and the assignee's attorney, if any, not less
475	than 3 days before the date of the proposed action. The notice
476	shall include a description of the proposed action to be taken
477	and the date of the proposed action, and shall set forth the
478	date and place for the hearing at which any objections shall be
479	heard. If no objections are timely filed and served, the
480	assignee may take such action as described in the notice without
481	further order of the court or may obtain an order of the court
482	granting such motion if the assignee reasonably believes that
483	such order is necessary to proceed with the action contemplated
484	by the motion.
485	(8)  Wherever notice is required to be given under this
486	chapter, a certificate of service of such notice shall be filed
487	with the court and notice shall be given to all consensual
488	lienholders and counsel that have filed a notice of appearance
489	with the court or are identified in the assignor's schedules.
490	Section 9.  Subsections (6) and (7) are added to section
491	727.112, Florida Statutes, to read:
492	727.112  Proof of claim.--
493	(6)  If a claim for damages results from the assignee's
494	rejection of a lease of real property, such claim shall be
495	limited to the sum of:
496	(a)  The rent reserved by such lease, without acceleration,
497	for the greater of 1 year, or 15 percent of the remaining term
498	of such lease, following the earlier of the date of assignment
499	or the date on which such lessor repossessed or the lessee
500	surrendered the leased property.
501	(b)  Any unpaid rent due under such lease, without
502	acceleration, on the earlier of such dates.
503	(c)  Reasonable attorney's fees and costs incurred by the
504	lessor in connection with such lease.
505	(d)  The lessor's reasonable costs incurred in reletting
506	the premises previously leased by the assignor.
507	(7)  If a claim for damages results from the termination of
508	an employment contract, such claim shall be limited to the sum
509	of:
510	(a)  The compensation provided by such contract, without
511	acceleration, for 1 year following the earlier of the date of
512	assignment or the date on which the assignor or assignee, as
513	applicable, directed the employee to terminate, or such employee
514	terminated, performance under such contract.
515	(b)  Any unpaid compensation due under such contract,
516	without acceleration, on the earlier of such dates.
517	Section 10.  Section 727.113, Florida Statutes, is amended
518	to read:
519	727.113  Objections to claims.--
520	(1)  At any time prior to the entry of an order approving
521	the assignee's final report, the assignee or any party in
522	interest, including another creditor of the assignor, may file
523	with the court an objection to a claim, which objection shall be
524	in writing and shall set forth the nature of the objection. A
525	copy of the objection, together with notice of hearing thereon,
526	shall be mailed to the creditor at least 20 days prior to the
527	hearing. All claims properly filed with the assignee and not
528	disallowed by the court shall constitute all claims entitled to
529	distribution from the estate.
530	(2)  Following expiration of the claims bar date, the
531	assignee shall create a register of all creditors that have
532	filed claims against the assignor's estate and shall make such
533	register available upon request to any creditor or other party
534	in interest.
535	(3)  The assignee, as well as any creditor or any party in
536	interest, shall have standing to challenge the validity, extent,
537	or priority of any claim filed by a creditor against the
538	assignor's estate.
539	(4)  A creditor whose claim is secured by a lien against
540	property of the estate shall have 60 days following the sale or
541	disposition of the property securing his or her claim to file a
542	claim for an unsecured deficiency, notwithstanding the passage
543	of the claims bar date. Notwithstanding the 60-day time period,
544	if such a creditor fails to file with the assignee a deficiency
545	claim within 10 days after the filing and service by mail of the
546	assignee's final report of all receipts and disbursements, such
547	creditor's deficiency claim shall be disallowed as untimely and
548	such creditor shall not be entitled to share in any distribution
549	made to holders of unsecured claims pursuant to s. 727.114(1)(f)
550	on account of such creditor's deficiency claim.
551	Section 11.  Section 727.114, Florida Statutes, is amended
552	to read:
553	727.114  Priority of claims.--Allowed claims shall receive
554	distribution under this chapter in the following order of
555	priority and, with the exception of paragraph subsection (1)(a),
556	on a pro rata basis:
557	(1)(a)  Creditors with liens on assets of the estate, which
558	liens are duly perfected pursuant to applicable law, shall
559	receive the proceeds from the disposition of their collateral,
560	less the reasonable, necessary expenses of preserving or
561	disposing of such collateral to the extent of any benefit to
562	such creditors. If and to the extent that such proceeds are less
563	than the amount of a creditor's claim or a creditor's lien is
564	avoided pursuant to s. 727.109(8)(6)(c), such a creditor shall
565	be deemed to be an unsecured creditor for such deficiency
566	pursuant to paragraph (f) subsection (6) of this section.
567	(b)(2)  Expenses incurred during the administration of the
568	estate, other than those expenses allowable under paragraph (a)
569	subsection (1), including allowed fees and reimbursements of all
570	expenses of the assignee and professional persons employed by
571	the assignee under s. 727.108(6), and rent incurred by the
572	assignee in occupying any premises in which the assets of the
573	assignment estate are located or the business of the assignor is
574	conducted, from and after the date of the assignment, through
575	and until the earlier of the date on which the lease for such
576	premises is rejected pursuant to an order of the court, or the
577	date of termination of such lease pursuant to s. 727.108(6).
578	(c)(3)  Unsecured claims of governmental units for taxes
579	which accrued within 3 years prior to the filing date.
580	(d)(4)  Claims for wages, salaries, or commissions,
581	including vacation, severance, and sick leave pay, or
582	contributions to an employee benefit plan earned by employees of
583	the assignor individual within 180 90 days before of the filing
584	date or the cessation of the assignor's business, whichever
585	occurs first, but only to the extent of $10,000 $2,000.
586	(e)(5)  Allowed unsecured claims, to the extent of $2,225
587	$900 for each individual, arising from the deposit with the
588	assignor before the filing date of money in connection with the
589	purchase, lease, or rental of property or the purchase of
590	services for personal, family, or household use by such
591	individuals that were not delivered or provided.
592	(f)(6)  Unsecured claims.
593	(2)  A subordination agreement is enforceable in a case
594	arising under this chapter to the same extent that such
595	agreement is enforceable under applicable law.
596	(3)  For the purpose of distribution under this chapter, a
597	claim arising from rescission of a purchase or sale of a
598	security of the assignor or of an affiliate of the assignor for
599	damages arising from the purchase or sale of such a security, or
600	for reimbursement or contribution allowed under this chapter on
601	account of such a claim, shall be subordinated to all claims or
602	interests that are senior to or equal to the claim or interest
603	represented by such security, except if such security is common
604	stock, such claim shall have the same priority as common stock.
605
606	If all of the above classes have been paid in full, any residue
607	shall be paid to the assignor.
608	Section 12.  This act shall take effect July 1, 2007.

CODING: Words stricken are deletions; words underlined are additions.