RIGHTS OF PARTIES TO SECURITY AGREEMENT (ss. 679.1011-679.1101)ĮFFECTIVENESS OF SECURITY AGREEMENT ATTACHMENT OF SECURITY INTEREST The visual relationship between Florida Statutes section numbers and Code section number was not destroyed by this alteration the digit preceding the decimal point coincides with the Code article number, and the digits following the decimal point coincide with the Code section numbers. The purpose was to conform the numbering of the Code sections with the decimal numbering system used in other chapters of the Florida Statutes. 69-353, the editors altered the numbers of all sections making up this chapter at that time by deleting the digit and hyphen immediately following the decimal point. Unless otherwise indicated, attorneys at Eversheds Sutherland (US) LLP are not certified by the Texas Board of Legal Specialization.UNIFORM COMMERCIAL CODE: SECURED TRANSACTIONS The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.ĪTTORNEY ADVERTISING - Prior results do not guarantee a similar outcome. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the member firms or their controlled, managed or affiliated entities are in a partnership or are part of a global LLP. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. (3) If the search consists of all names in the filing office’s database, are there any limitations on a user’s obligation to review the names and, if so, what factors should courts consider when determining whether a user has satisfied those obligations?Įversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed, affiliated and member firms (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. (2) If not, does that search consist of all names in the filing office’s database, which the user can browse to using the command tabs displayed on the initial page? (1) Is the “search of the records of the filing office under the debtor’s correct name, using the filling office’s standard search logic,” as provided for by Florida Statute § 679.5061(3), limited to or otherwise satisfied by the initial page of twenty names displayed to the user of the Registry’s search function? In light of that, and the importance of the issue to debtors and creditors, the court certified to the Florida Supreme Court the following questions: On appeal, the Eleventh Circuit, in an opinion written by Judge Lagoa, noted that different bankruptcy courts have reached different conclusions about the scope of the term “search” as used in the relevant Florida statute. The bankruptcy court held that the misnomer on Live Oak’s financing statements was not “seriously misleading,” and that the statements were therefore effective, based on its finding that the search results from the Registry “appear to include more than the initial page displayed.” The district court affirmed. To find the debtor’s correct name, the searcher would have to click the “PREVIOUS” link to go to the immediately preceding 20 names on the Registry’s list. Live Oak had filed UCC-1 financing statements with the Florida Secured Transaction Registry, but the statements misidentified the debtor as “1944 Beach Blvd., LLC” instead of “1944 Beach Boulevard, LLC.” As a result, a search of the Registry using the name on the financing statement would bring up a page of 20 entries, but the debtor’s correct name was not among them. The case began in bankruptcy court, where 1944 Beach Boulevard, LLC, as debtor-in-possession, filed a complaint to avoid a purported blanket lien on its assets by Live Oak Banking Company. (In re NRP Lease Holdings, LLC), 2021 U.S. But how much of a search is required? The Eleventh Circuit certified that question to Florida’s Supreme Court in 1944 Beach Boulevard, LLC v. Posted on in Commercial Law and Business Torts | Comments Off on A Debtor by Any Other Name? Court Certifies Question to Florida Supreme Courtįlorida law provides that a UCC-1 financing statement is “seriously misleading” if it does not include the debtor’s correct name, unless “a search of the records of the filing office under the debtor’s correct name, using the filing office’s standard search logic, if any, would disclose” the financing statement notwithstanding the misnomer.
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