CopyCited 6 times | Published | United States Bankruptcy Court, M.D. Florida | 17 Fla. L. Weekly Fed. B 74, 2003 Bankr. LEXIS 1911, 2003 WL 23273254
...ecurity agreement, and acquires or succeeds to all or substantially all of the assets of the other person. Accordingly, Summit Staffing of Polk County, Inc. became bound by the security agreement entered into by Randy Vincent d/b/a/ Summit Staffing. Section 679.508, Florida Statutes, governs the effectiveness of a financing statement if a new debtor becomes bound by a security agreement. This situation may arise when an original individual debtor incorporates his business, and the business continues to operate with the secured financing arrangements already in place. (See Comment to § 679.508). Section 679.508 provides as follows: 679.508....
...he financing statement to be seriously misleading. All of the Cutrale accounts receivable accrued more than four months after Summit Staffing of Polk County, Inc. became bound under the security agreement entered into by Summit Staffing. Pursuant to § 679.508(2), the financing statement disclosing Summit Staffing as the debtor continues to be effective to perfect the security interest in the Cutrale accounts receivable, unless the difference between the name Summit Staffing and the name Summit Staffing of Polk County, Inc....
...search logic, if any, would disclose a financing statement that fails sufficiently to provide the name of the debtor in accordance with s.
679.5031(1), the name provided does not make the financing statement seriously misleading. (4) For purposes of s.
679.508(2), the term "debtor's correct name" as used in subsection (3) means the correct name of the new debtor....
CopyPublished | Court of Appeals for the Eleventh Circuit
...match of the debtor’s
correct name” because, “[a]lthough Revised Article 9 does not re-
quire that a searcher exercise reasonable diligence in the selection
of the names to be searched or the number of searches to conduct,
1 Florida Statute §
679.508 governs the effectiveness of a financing statement
where, as in In re Summit Staffing, a new debtor becomes bound by a security
agreement entered into before its incorporation. Under this statute, a financ-
ing statement naming an original debtor will be effective unless the differences
between the name of the original debtor and the name of the new debtor
causes the financing statements to be seriously misleading. Id. §
679.508(2).
The statute provides that “seriously misleading” means the same standard set
forth in Florida Statute §
679.5061, the statute at issue here.
USCA11 Case: 21-11742 Date Filed: 12/10/2021 Page: 16 of 22
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