The 2023 Florida Statutes (including Special Session C)

Title XXXIX
COMMERCIAL RELATIONS

Chapter 679
UNIFORM COMMERCIAL CODE: SECURED TRANSACTIONS

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F.S. 679.2031

679.2031 Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites.—

(1) A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment.

(2) Except as otherwise provided in subsections (3) through (10), a security interest is enforceable against the debtor and third parties with respect to the collateral only if:

(a) Value has been given;

(b) The debtor has rights in the collateral or the power to transfer rights in the collateral to a secured party; and

1. The debtor has authenticated a security agreement that provides a description of the collateral and, if the security interest covers timber to be cut, a description of the land concerned;

2. The collateral is not a certificated security and is in the possession of the secured party under s. 679.3131 pursuant to the debtor’s security agreement;

3. The collateral is a certificated security in registered form and the security certificate has been delivered to the secured party under s. 678.3011 pursuant to the debtor’s security agreement; or

4. The collateral is deposit accounts, electronic chattel paper, investment property, letter-of-credit rights, or electronic documents, and the secured party has control under s. 677.106, s. 679.1041, s. 679.1051, s. 679.1061, or s. 679.1071 pursuant to the debtor’s security agreement.

(3) Subsection (2) is subject to s. 674.2101 on the security interest of a collecting bank, s. 675.118 on the security interest of a letter-of-credit issuer or nominated person, s. 679.1101 on a security interest arising under chapter 672 or chapter 680, and s. 679.2061 on security interests in investment property.

(4) A person becomes bound as debtor by a security agreement entered into by another person if, by operation of law other than this chapter or by contract:

(a) The security agreement becomes effective to create a security interest in the person’s property; or

(b) The person becomes generally obligated for the obligations of the other person, including the obligation secured under the security agreement, and acquires or succeeds to all or substantially all of the assets of the other person.

(5) If a new debtor becomes bound as debtor by a security agreement entered into by another person:

(a) The agreement satisfies paragraph (2)(c) with respect to existing or after-acquired property of the new debtor to the extent the property is described in the agreement; and

(b) Another agreement is not necessary to make a security interest in the property enforceable.

(6) The attachment of a security interest in collateral gives the secured party the rights to proceeds provided by s. 679.3151 and is also attachment of a security interest in a supporting obligation for the collateral.

(7) The attachment of a security interest in a right to payment or performance secured by a security interest or other lien on personal or real property is also attachment of a security interest in the security interest, mortgage, or other lien.

(8) The attachment of a security interest in a securities account is also attachment of a security interest in the security entitlements carried in the securities account.

(9) The attachment of a security interest in a commodity account is also attachment of a security interest in the commodity contracts carried in the commodity account.

(10) A security interest in an account consisting of a right to payment of a monetary obligation for the sale of real property that is the debtor’s homestead under the laws of this state is not enforceable unless:

(a) The description of the account in the security agreement conspicuously states that the collateral includes the debtor’s right to payment of a monetary obligation for the sale of real property;

(b) The description of the account in the security agreement includes a legal description of the real property;

(c) The description of the account in the security agreement conspicuously states that the real property is the debtor’s homestead; and

(d) The security agreement is also authenticated by the debtor’s spouse, if the debtor is married; if the debtor’s spouse is incompetent, then the method of authentication by the debtor’s spouse is the same as provided by the laws of this state, other than this chapter, which apply to the alienation or encumbrance of homestead property by an incompetent person.

History.—s. 2, ch. 2001-198; s. 3, ch. 2002-242; s. 59, ch. 2010-131.

F.S. 679.2031 on Google Scholar

F.S. 679.2031 on Casetext

Amendments to 679.2031

Arrestable Offenses / Crimes under Fla. Stat. 679.2031

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 679.2031.

Annotations, Discussions, Cases:

Cases from cite.case.law:

IN RE TUSCANY ENERGY, LLC, v. P. A. LLC,, 581 B.R. 681 (Bankr. S.D. Fla. 2018)

. . . . § 679.2031(2) (providing requirements for an enforceable security interest). . . . Stat. § 679.2031. . . .

IN RE TUSCANY ENERGY, LLC,, 561 B.R. 910 (Bankr. S.D. Fla. 2016)

. . . Florida Statutes § 679.2031 provides, in relevant part, as follows: (1) A security interest attaches . . . All of the requirements for attachment of a security interest under Florida Statutes § 679.2031 are met . . .

HSBC BANK USA, N. A. v. PEREZ, G. N. A. U. S. N. A. N. A. N. A. WMALT, 165 So. 3d 696 (Fla. Dist. Ct. App. 2015)

. . . Under section 679.2031(1), Florida Statutes (2008), a security interest attaches to collateral “when . . . See § 679.2031(1), (2), Fla. Stat. (2008). . . .

IN RE HINTZE K. M. v. M., 525 B.R. 780 (Bankr. N.D. Fla. 2015)

. . . Stat. §§ 679.1081(3) and 679.2031 makes it clear that because the Defendant and Debtors described the . . . Stat. § 679.1081, it is contained in § 679.2031. . Fed. R. Civ. P. 56(c). . . . . Stat. § 679.2031 (2014); see also James J. White & Robert S. . . . Id. § 679.2031. . Richardson v. Myers, 106 Fla. 136, 143 So. 157, 158 (1932). . . . Stat. §§ 679.1081, 679.2031 (2014). . Official Comm. of Unsecured Creditors of PSA, Inc. v. . . .

In ROYAL WEST PROPERTIES, INC., 441 B.R. 158 (Bankr. S.D. Fla. 2010)

. . . . § 679.2031 and perfection of that interest under Fla. . . .

CHARLOTTE DEVELOPMENT PARTNERS, LLC, v. TRICOM PICTURES PRODUCTIONS, INC. a a, 33 So. 3d 690 (Fla. Dist. Ct. App. 2009)

. . . .” § 679.2031(2)(c)l., Fla. Stat. (2008). . . .

In L. CRANDALL,, 346 B.R. 220 (Bankr. M.D. Fla. 2006)

. . . . §§ 679.1091; 679.2031; 319.27(2). . . .

In J. LATINI N. v. G. J., 334 B.R. 338 (Bankr. D. Mass. 2005)

. . . . § 679.2031. An escrow account is a deposit account. Brown v. Master Fin., Inc. . . .

In BROWN, v. UMLIC VP, LLC,, 311 B.R. 282 (Bankr. M.D. Fla. 2004)

. . . Section 679.2031 of the Florida Statutes sets forth the process by which a security interest in personal . . . property is created and provides as follows: 679.2031. . . .

In SUMMIT STAFFING POLK COUNTY, INC., 305 B.R. 347 (Bankr. M.D. Fla. 2003)

. . . Florida Statutes § 679.2031(4)(b) provides that, in certain circumstances, a new debtor may become bound . . . by a security agreement entered into by another person. 679.2031 Attachment and enforceability of security . . . acquired by the new debtor before, and within 4 months after, the new debtor becomes bound under s. 679.2031 . . . collateral acquired by the new debtor more than k months after the new debtor becomes bound under s. 679.2031 . . .