CopyCited 3 times | Published | United States Bankruptcy Court, S.D. Florida. | 1991 Bankr. LEXIS 670
...In the instant case, the fixed obligation to pay interest arose only at the conclusion of each day the Debtor retained the use of the funds, and not at the time the Note was executed and the funds delivered. The law of the state of Florida governs Debtor's obligation under the Note. Florida Statute § 697.06 (1989) provides: Any note which is silent as to the right of the obligor to prepay the note in advance of the stated maturity date may be prepaid in full by the obligor or his successor in interest without penalty....
CopyCited 3 times | Published | Florida 3rd District Court of Appeal | 1988 WL 75984
...The trial court ruled that since the note failed to specifically state that a prepayment penalty would apply if the note were satisfied before the end of the fifth year, there would be no penalty if it were paid off before that time. MacIntyre appeals. The statute to be construed is section 697.06, Florida Statutes (1987) which states, "Any note which is silent as to the right of the obligor to prepay the note in advance of the stated maturity date may be prepaid in full by the obligor or his successor in interest without penalt...
...ing prepayment, the presumption exists that the payee is under no obligation to accept payment prior to maturity. See Henderson v. Guest, 197 Okla. 443, 172 P.2d 605 (1946); 59 C.J.S. Mortgages § 447 (1949); 10 C.J.S. Bills and Notes § 462 (1938). Section 697.06 was enacted to limit that rule....
...This court, in determining the extent to which the statute limits the common law, is bound by the well-settled rule of construction that a statute in derogation of the common law must be strictly construed. Carlile v. Game & Fresh Water Fish Comm'n,
354 So.2d 362 (Fla. 1977). Section
697.06 states that no penalty may be charged if the note is silent as to a penalty for full payment made "in advance of the stated maturity date." The fact that the note at issue fails to delineate a penalty for prepayment for that period of time prior to five years from execution does not automatically bring the note within the strictures of section
697.06. The note, when read as a whole, specifically states that certain penalties will be assessed for prepayment before the date of maturity. Consequently, the note falls outside the provisions of section
697.06, and Hark, as Kennedy's personal representative, may not prepay the note before the sixth year, see Nacron v....
