The Eleventh Circuit certifies questions regarding Florida Statute section 679.5016(3) (safe harbor for incorrect spelling of debtor names in UCC-1 Financing Statements)to the Florida Supreme, specifically: 2022), holding that the Florida Secured Transaction Registry’s failure to employ ‘standard search logic’ precludes. In one of the most important debtor name decisions in recent history, the Florida Supreme Court decided 1944 Beach Blvd., LLC v.
Live Oak Banking Company (In Re: NRP Lease Holdings, LLC),Case No. In Florida, All Debtor Name Errors are Fatal. There are many nuances, exceptions and limitations when it comes to calculating documentary stamp and non-recurring intangible taxes and it is best to consult with your attorney when entering into or modifying loans secured by Florida real property.1944 Beach Boulevard, LLC v. What this is - A new Florida Supreme Court case makes incorrect debtor names a matter of utmost importance when filing. Commission Meeting Room, FCC Headquarters, 45 L Street NE, Washington, DC 20554. Secured Parties Beware: In Florida, All Debtor Name Errors are Fatal By: Pia Angelikis, Esq. OctoOctober 2022 Open Commission Meeting. If the latter case, the mortgage would not be subject to the non-recurring intangible tax. Equipment Authorization (OET-EAS) Budget & Performance Reports.
FLORIDA SECURED TRANSACTION REGISTRY SERIES
SPAC Transaction means a transaction or series of related. However, if the borrower owns and mortgages the improvements on the leasehold property (which are considered part of the real property), non-recurring intangible taxes will be payable on the proportion that the value of the improvements bears to the combined value of the leasehold interest and the improvements, unless the mortgage provides that the lender must look first to the leasehold to satisfy the debt before enforcing its lien on the improvements. Financing Transactions means the execution, delivery and performance by each Loan Party of the Loan Documents to which it is to be a party, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder. The leasehold interest is considered personal property, and, until the elimination of the annual recurring intangible tax, was subject to that tax. If the renewal note increases the existing balance of a note secured by Florida real property, then additional documentary stamp and intangible taxes may be payable only on the increased amount of the renewal note above the original face amount of the existing note (in the case of a revolving loan) or the outstanding balance of the existing loan (in the case of a term loan).Ī note made or delivered in Florida and secured by a leasehold mortgage will be subject to documentary stamp taxes but is not subject to the non-recurring intangible tax. The lender and borrower can then amend and restate the note and mortgage, and, as long as the amended and restated note qualifies as an exempt renewal note (e.g., the note is executed only by the original maker, and the note changes the interest rate, maturity date, or payment schedule without enlargement of the existing principal balance), no additional taxes will be payable. An advantage to the lender in taking an assignment is that it preserves the priority of the lien (from the date the mortgage was filed), assuming there is no novation (which may result from an extinguishment of the existing mortgage). It may do that by agreeing to take an assignment of the existing note and mortgage (there being no taxes payable on an assignment by one lender to another). Sometimes a refinancing lender will agree to structure a transaction so that its borrower does not incur additional documentary stamp and intangible taxes that otherwise would be payable on a “new” note and mortgage (e.g., where the prior note was “paid in full” and the prior mortgage satisfied of record). Non-recurring intangible personal property taxes are payable at the rate of $.002 times the amount of the indebtedness secured by a mortgage on Florida real property.
Documentary stamp taxes on notes or other promises to pay are payable at the rate of $.35 for every $100 (or fraction) of indebtedness secured by a mortgage on Florida real property. Loans secured by Florida real estate are generally taxable. Some real estate loan transactions, however, can be structured in a way that results in a reduced or no payment of documentary stamp and intangible taxes. Use Amazon Registry and Gift Lists to create and share your gift ideas for any event, with the convenience and perks you love from Amazon. Because Florida does not impose a state income tax on individuals, the imposition of documentary stamp and non-recurring intangible personal property taxes on Florida real estate loan transactions is one way that the State provides for additional revenue.
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