Florida/Georgia Personal Injury & Workers Compensation

...Whether a creditor has a purchase money security interest is determined by looking to state law. In re Price, 363 B.R. 734, 740 (Bankr.E.D.N.C.2007); In re Peaslee, 358 B.R. 545, 551 (Bankr. W.D.N.Y.2006), rev'd on other grounds, 373 B.R. 252, 254 (W.D.N.Y.2007); In re Murray, 352 B.R. 340, 346 (Bankr.M.D.Ga. 2006). [1] Section 679.1031 of the Florida Statutes provides in relevant part: (a) "Purchase-money collateral" means goods or software that secures a purchase-money obligation incurred with respect to that collateral....

...is or was purchase-money collateral, also to the extent that the security interest secures a purchase-money obligation incurred with respect to other inventory in which the secured party holds or held a purchase-money security interest..... Fla. St. § 679.1031....

...907, 923 (Bankr.M.D.Ga.2006) aff'd, No. 4:07-CV-37CDL, 2007 WL 1858291 (M.D.Ga.2007). Americredit urges the Court to apply the in pari materia doctrine applied in a number of the above cited cases to determine the meaning of "price" of the collateral as set forth in Fla. Stat. § 679.1031....

...Martin, 916 So.2d 763 (Fla.2005). The in pari materia doctrine should only be applied if the statute being construed is ambiguous. Brown v. State, 848 So.2d 361, 364 (Fla.Dist.Ct.App. 4th Dist.2003). The Court finds that the term "price of the collateral" as set forth in Fla. St. § 679.1031 is clear on its face....

...deral statutes because they were not enacted to define or expand upon U.C.C.'s definition of purchase money security interest.) The Court concludes that financed negative equity is not part of the "price of the collateral" as set forth in Fla. Stat. § 679.1031....

...Americredit asserts that the law has changed since the Eleventh Circuit's analysis and that the Court has the discretion as to whether to apply the dual status rule or the transformation rule to a partial purchase money security interest. Paragraphs 6 and 7 of Fla. Stat. § 679.1031 provide: (6) A purchase-money security interest does not lose its status as such, even if: (a) The purchase-money collateral also secures an obligation that is not a purchase-money obligation; (b) Collateral that is not purchase-money col...

...in Article 9 of the Uniform Commercial Code ("UCC"). The parties in this case, and all of the reported decisions, are in accord that the analysis must therefore begin with the definition of PMSI in Section 9-103 of the UCC, codified in this state as Section 679.1031, Florida Statutes. See e.g., In re Blakeslee, 377 B.R. 724 (Bankr.M.D.Fla. 2007); In re Honcoop, 377 B.R. 719 (Bankr.M.D.Fla.2007). Section 679.1031(2), Florida Statutes, provides: "A security interest in goods is a purchase-money security interest: (a) to the extent that the goods are purchase money collateral with respect to the collateral." Working through the structure of Section 679.1031, "purchase-money collateral" means "goods . . . that secure a purchase money obligation incurred with respect to the collateral." Fla. Stat. § 679.1031(1)(a) (2007). A "purchase-money obligation" is — "an obligation . . . incurred as all or part of the price of the collateral or for value given to enable the debtor to acquire rights in the use of the collateral. . . ." (emphasis added) Fla. Stat. § 679.1031(1)(b) (2007). There is no statutory definition in the UCC of "price" or the "value given to enable," but the UCC drafters' Comment 3 to Section 679.1031, provides the following explanation: "[t]he `price' of collateral or the `value given to enable' includes obligations incurred in connection with acquiring rights in the collateral, sales taxes, duties, finance charges, interest frei...

...[4] When viewed in *634 this way, — as a "packaged" transaction to dispose of the old car, insure the new loan amount, and provide for future maintenance — the items included in the amount financed do have a close nexus to the acquisition of the car, consistent with the explanation of the concept of price in Comment 3 to Section 679.1031. Technically, this Court is not being asked to define PMSI in Section 679.1031 by reference to the concept of "price" in other statutes....

...The lenders also urge the Court to view the state motor vehicle finance law and federal truth-in-lending law, which recognize negative equity, gap insurance and service contracts as part of the total sales price, should be viewed being in pari materia with the concept of "price" in UCC Section 679.1031....

...Whether a creditor has a purchase money security interest is determined by looking to state law. [1] In re Price, 363 B.R. 734 (Bankr.E.D.N.C.2007); In re Peaslee, 358 B.R. 545, 551 (Bankr. W.D.N.Y.2006), rev'd on other grounds, 373 B.R. 252, 254 (W.D.N.Y.2007); In re Murray, 352 B.R. 340, 346 (Bankr.M.D.Ga. 2006). Section 679.1031 of the Florida Statutes provides in relevant part: (a) "Purchase-money collateral" means goods or software that secures a purchase-money obligation incurred with respect to that collateral....

...is or was purchase-money collateral, also to the extent that the security interest secures a purchase-money obligation incurred with respect to other inventory in which the secured party holds or held a purchase-money security interest..... Fla. St. § 679.1031....

...at 349. The Court notes however that GAP insurance was not one of the items considered by the court in Murray. Creditor urges the Court to apply the in pari materia doctrine to determine the meaning of "price of the collateral" as set forth in Fla. Stat. § 679.1031....

...The in pari materia doctrine should only be applied if the statute being construed is ambiguous. Brown v. State, 848 So.2d 361, 364 (Fla. Dist.Ct.App. 4th Dist.2003). The Court finds that the term "price of the collateral" as set forth in Fla. St. § 679.1031 is clear on its face....

...Creditor asserts that the law has changed since the Eleventh Circuit's analysis and that the Court has the discretion as to whether to apply the dual status rule or the transformation rule to a partial purchase money security interest. Paragraphs 6 and 7 of Fla. Stat. § 679.1031 provide: (6) A purchase-money security interest does not lose its status as such, even if: *724 (a) The purchase-money collateral also secures an obligation that is not a purchase-money obligation; (b) Collateral that is not purchase-mone...

...In my opinion, this attorney's charging lien is superior to the claimed judgment lien of SouthTrust on the client's recovery for the same reason that a purchase money security interest would be superior to a pre-existing judgment lien attaching eo instante to the buyer's acquisition of goods. See § 679.1031(1)(b), Fla....

...The Bank’s argument on the priority issue is as follows: Article 9 of the UCC applies to consignments. § 679.1091(l)(d), Fla. Stat. (2003). “The security interest of a consignor in goods that are the subject of a consignment is a purchase-money security interest in inventory.” § 679.1031(4)....