The 2023 Florida Statutes (including Special Session C)

Title XLI
STATUTE OF FRAUDS, FRAUDULENT TRANSFERS, AND GENERAL ASSIGNMENTS

Chapter 726
FRAUDULENT TRANSFERS

View Entire Chapter

F.S. 726.109

726.109 Defenses, liability, and protection of transferee.—

(1) A transfer or obligation is not voidable under s. 726.105(1)(a) against a person who took in good faith and for a reasonably equivalent value or against any subsequent transferee or obligee.

(2) Except as otherwise provided in this section, to the extent a transfer is voidable in an action by a creditor under s. 726.108(1)(a), the creditor may recover judgment for the value of the asset transferred, as adjusted under subsection (3), or the amount necessary to satisfy the creditor’s claim, whichever is less. The judgment may be entered against:

(a) The first transferee of the asset or the person for whose benefit the transfer was made; or

(b) Any subsequent transferee other than a good faith transferee who took for value or from any subsequent transferee.

(3) If the judgment under subsection (2) is based upon the value of the asset transferred, the judgment must be for an amount equal to the value of the asset at the time of the transfer, subject to adjustment as the equities may require.

(4) Notwithstanding voidability of a transfer or an obligation under ss. 726.101-726.112, a good faith transferee or obligee is entitled, to the extent of the value given the debtor for the transfer or obligation, to:

(a) A lien on or a right to retain any interest in the asset transferred;

(b) Enforcement of any obligation incurred; or

(5) A transfer is not voidable under s. 726.105(1)(b) or s. 726.106 if the transfer results from:

(a) Termination of a lease upon default by the debtor when the termination is pursuant to the lease and applicable law; or

(b) Enforcement of a security interest in compliance with Article 9 of the Uniform Commercial Code.

(6) A transfer is not voidable under s. 726.106(2):

(a) To the extent the insider gave new value to or for the benefit of the debtor after the transfer was made unless the new value was secured by a valid lien;

(b) If made in the ordinary course of business or financial affairs of the debtor and the insider; or

(c) If made pursuant to a good faith effort to rehabilitate the debtor and the transfer secured present value given for that purpose as well as an antecedent debt of the debtor.

(7)(a) The transfer of a charitable contribution that is received in good faith by a qualified religious or charitable entity or organization is not a fraudulent transfer under s. 726.105(1)(b).

(b) However, a charitable contribution from a natural person is a fraudulent transfer if the transfer was received on, or within 2 years before, the earlier of the date of commencement of an action under this chapter, the filing of a petition under the federal Bankruptcy Code, or the commencement of insolvency proceedings by or against the debtor under any state or federal law, including the filing of an assignment for the benefit of creditors or the appointment of a receiver, unless:

1. The transfer was consistent with the practices of the debtor in making the charitable contribution; or

2. The transfer was received in good faith and the amount of the charitable contribution did not exceed 15 percent of the gross annual income of the debtor for the year in which the transfer of the charitable contribution was made.

History.—s. 9, ch. 87-79; s. 2, ch. 2013-189.

F.S. 726.109 on Google Scholar

F.S. 726.109 on Casetext

Amendments to 726.109

Arrestable Offenses / Crimes under Fla. Stat. 726.109

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

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 726.109.

Annotations, Discussions, Cases:

Cases from cite.case.law:

LAPTOPPLAZA, INC. v. WELLS FARGO BANK, NA,, 264 So. 3d 1049 (Fla. App. Ct. 2019)

. . . . § 726.109(2), Fla. Stat. (2014) (emphasis added). . . .

VILLAMIZAR, v. LUNA CAPITAL PARTNERS, LLC,, 260 So. 3d 355 (Fla. App. Ct. 2018)

. . . Counsel erroneously reads the term "good faith" in section 726.109(1), Florida Statutes (2017), within . . .

IN RE MONGELLUZZI A. B. T. S. HO II, LLC HO, LLC YJNK II, YJNK XI CA, LLC ABTS LLC B. LLC HQ, LLC LLC U, LLC USL H LLC LLP YJNK III, YJNK VIII, LLC, v., 587 B.R. 392 (Bankr. M.D. Fla. 2018)

. . . contends that even if the Court finds the Subject Transfers to be constructively fraudulent under § 726.109 . . . Section 726.109(1) specifically applies to fraudulent transfers voidable under § 726.105(1)(a), which . . . are transfers made "[w]ith actual intent to hinder, delay, or defraud any creditor of the debtor;" § 726.109 . . . Regions seeks to assert the good-faith defense to Plaintiff's avoidance claims for actual fraud under § 726.109 . . .

IN RE ROLLAGUARD SECURITY, LLC, LLC, C. LLC, v. TD N. A. C. LLC, v. PNC N. A. C. LLC, v. N. A. d b a, 570 B.R. 859 (Bankr. S.D. Fla. 2017)

. . . . § 726.109(1), provide affirmative defenses that focus on whether the defendant received a transfer . . .

STAVROU, v. DESTINATION BOAT CLUBS, INC., 226 So. 3d 293 (Fla. Dist. Ct. App. 2017)

. . . See § 726.109(2), Fla. . . . Parties by Lynn, Inc., 753 So.2d 637, 640 (Fla. 3d DCA 2000) (applying section 726.109(2) to a judgment . . .

ARCH COAL, INC. v. HUGLER, U. S., 242 F. Supp. 3d 13 (D.D.C. 2017)

. . . . §§ 725.606(a), 726.109, 726.115. . . .

NATIONAL AUTO SERVICE CENTERS, INC. a a D. LLC LLC, v. F R LLC, a F R LLC, a, 192 So. 3d 498 (Fla. Dist. Ct. App. 2016)

. . . . § 726.109. . . .

McCALLA v. E. C. KENYON CONSTRUCTION COMPANY, INC. a, 183 So. 3d 1192 (Fla. Dist. Ct. App. 2016)

. . . against a transfer or obligation under ss. 726.101-726.112, a creditor, subject to the limitations in s. 726.109 . . . Section 726.109(2), Florida Statutes, provides that “to the extent a transfer is voidable in an action . . . Brook, 708 So.2d 607, 610 n. 1 (Fla. 2d DCA 1998) (noting that “section 726.109(2)(a), Florida Statutes . . .

NATIONAL MARITIME SERVICES, INC. v. F. STRAUB, LLC,, 776 F.3d 783 (11th Cir. 2015)

. . . . § 726.109. . . . Section 726.109(6) provides that a transfer to an insider is not voidable “[t]o the extent the insider . . . Id. § 726.109(6). . . . But section 726.109(6) applies when an insider gives new value after a transfer. See Unif. . . . Fraudulent Transfer Act § 8 cmt. 6 (2006) (explaining that section 726.109(6) “is adapted from § 547( . . .

IN RE CARPETS, INC. M. v. Sr., 522 B.R. 718 (Bankr. M.D. Fla. 2014)

. . . Section 726.109, Florida Statutes, provides that to the extent a transfer is avoidable under § 726.108 . . . Stat. . § 726.109(2)(a), Fla. Stat. . In re Int’l Admin. . . .

IN RE L. BERKMAN, v. K. In K. v., 517 B.R. 288 (Bankr. M.D. Fla. 2014)

. . . . § 726.109(1). . . . Stat. § 726.109(1), the Trustee must demonstrate that she accepted the settlement payments from Berkman . . . Good Faith Section 726.109(1), Florida Statutes, provides a defense to claims made under Fla. . . . Stat. § 726.109(1). . . . Stat. § 726.109(1), and the Court likewise grants summary judgment in their favor on Plaintiffs’ actual . . .

WELCH, v. SYNOVUS BANK,, 517 B.R. 269 (M.D. Fla. 2014)

. . . . § 726.109(2)(a); 11 U.S.C. § 550(a)(1)). . . .

EDWARDS a k a a k a D. v. AIRLINE SUPPORT GROUP, INC., 138 So. 3d 1209 (Fla. Dist. Ct. App. 2014)

. . . against a transfer or obligation under ss. 726.101-726.112, a creditor, subject to the limitations in s. 726.109 . . .

SMITH, v. EFFECTIVE TELESERVICES, INC. a n k a LLC, a LLC, a F., 133 So. 3d 1048 (Fla. Dist. Ct. App. 2014)

. . . See § 726.109(1), Fla. . . .

NATIONAL MARITIME SERVICES, INC. v. F. STRAUB LLC, F., 979 F. Supp. 2d 1322 (S.D. Fla. 2013)

. . . . § 726.109(1). . . . Stat. § 726.109(6)(a). . . . transfer was made, a way in which the transfer might not be voidable pursuant to Florida Statute section 726.109 . . .

IN RE LYDIA CLADEK, INC. J. v. D., 494 B.R. 555 (Bankr. M.D. Fla. 2013)

. . . . § 726.109(1) provide transferees with a defense to fraudulent transfer actions based on actual fraud . . . transfers for value and in good faith pursuant to the good faith defense provided by § 548(e) and § 726.109 . . . Section 726.109(1) of the Florida Statutes provides that a fraudulent transfer under § 726.105(l)(a) . . . Stat. § 726.109(1). . . . Stat. § 726.109(1) provide transferees with a defense to fraudulent transfer actions based on actual . . .

In L. DESMARAIS, L. v. LLC,, 518 F. App'x 671 (11th Cir. 2013)

. . . Stat. 726.109(l)(a). . . .

In L. DESMARAIS, L. v. LLC,, 518 F. App'x 671 (11th Cir. 2013)

. . . Stat. 726.109(1)(a). . . .

W. WIAND, L. P. v. WELLS FARGO BANK, N. A., 938 F. Supp. 2d 1238 (M.D. Fla. 2013)

. . . Finally, Wachovia argues that the affirmative defense to fraudulent transfer liability found at § 726.109 . . . inquiry notice of Nadel’s fraud, and those allegations are sufficient to withstand the application of § 726.109 . . .

W. WIAND, L. P. LLC LLC L. P. v. MORGAN, III,, 919 F. Supp. 2d 1342 (M.D. Fla. 2013)

. . . . § 726.109(1) provides a “good faith” defense for transfers made with actual fraud under Fla. . . .

W. WIAND, L. P. LLC LLC L. P. v. W. CLOUD,, 919 F. Supp. 2d 1319 (M.D. Fla. 2013)

. . . . § 726.109(1) that provides a “good faith” defense for transfers made with actual fraud under Fla. . . .

W. WIAND, L. P. LLC LLC L. P. v. DANCING LLC,, 919 F. Supp. 2d 1296 (M.D. Fla. 2013)

. . . . § 726.109, it was a good faith transferee without knowledge of any indicia of fraud who provided reasonably . . .

In ROTHSTEIN ROSENFELDT ADLER, P. A. v., 483 B.R. 15 (Bankr. S.D. Fla. 2012)

. . . . § 548(c), and Florida Statute § 726.109(4). . . . reasons set forth above, the Trustee cannot recover these transfers under § 548(c) and Florida Statute § 726.109 . . . (4) because the Foundation has proved the defenses under 11 U.S.C. § 548(c), and Florida Statute § 726.109 . . .

DESAK, v. VANLANDINGHAM, a, 98 So. 3d 710 (Fla. Dist. Ct. App. 2012)

. . . Section 726.109(2), Florida Statutes (2002), provides: . . . .

In GLOBAL TECHNOVATIONS INCORPORATED GMBH SDN BHD v., 694 F.3d 705 (6th Cir. 2012)

. . . Stat. 726.109(4)(c). . . .

In GLOBAL TECHNOVATIONS INCORPORATED GMBH SDN BHD v., 694 F.3d 705 (6th Cir. 2012)

. . . Stat. 726.109(4)(c). . . .

E. PERLMAN, v. WELLS FARGO BANK, N. A., 830 F. Supp. 2d 1308 (S.D. Fla. 2011)

. . . . § 726.109(2). . . . Section 726.109(2)(a) provides: “Except as otherwise provided ... the creditor may recover ... against . . . The Court finds the cited case law construing § 550(a)(1) equally applicable to § 726.109(2)(a). . . .

In SEMINOLE WALLS CEILINGS CORP. v. L. J. E. PITA v. J. L. PITA, 446 B.R. 572 (Bankr. M.D. Fla. 2011)

. . . CHAPTER 4: Africh Did Not Receive the PITA Assets in Good Faith Under Florida Statute § 726.109(1), a . . . purchase the PITA Assets in good faith, he cannot rely on the good faith defense of Florida Statute § 726.109 . . . Stat. § 726.109(1). . Perlman v. . . .

In J. PEARLMAN, R. J. v. N. A., 440 B.R. 569 (Bankr. M.D. Fla. 2010)

. . . . § 726.109(1). . . .

In J. PEARLMAN, R. J. v. TD N. A. d b a, 440 B.R. 900 (Bankr. M.D. Fla. 2010)

. . . the good faith affirmative defense provided by § 548(c) of the Bankruptcy Code and Florida Statute § 726.109 . . .

SCHRAGER, v. HOWLAND,, 46 So. 3d 167 (Fla. Dist. Ct. App. 2010)

. . . The trial court was left only with deciding the appropriate remedy under sections 726.108 and 726.109 . . .

In GLOBAL TECHNOVATIONS, INC. In v. U. S. A., 431 B.R. 739 (Bankr. E.D. Mich. 2010)

. . . Stat. 726.109(4). . . . Under Section 726.109(4), Florida Statutes, a “good faith transferee” is entitled to a credit in the . . . Stat. 726.109(4)(c). . . . Stat. § 726.109(4)(c). C. . . . Stat. § 726.109(4)(c). . . . .

In CHAMPALANNE, C. v., 425 B.R. 707 (Bankr. S.D. Fla. 2010)

. . . . § 726.109(2). . . .

In DAVIS,, 403 B.R. 914 (Bankr. M.D. Fla. 2009)

. . . fraudulent transfer statute provides that a creditor may obtain, “subject to the limitations in s. 726.109 . . . Florida Statutes section 726.109 provides, among other things: Except as otherwise provided in this section . . . Id. § 726.109(2). . . . Stat. § 726.109(3). . . .

W. WIAND, L. L. C. HKW LLC, HKW I LLC, v. J. WAXENBERG,, 611 F. Supp. 2d 1299 (M.D. Fla. 2009)

. . . Finally, § 726.109(1) provides a “good faith defense” for transfers made with actual fraud under § 726.105 . . . Stat. § 726.109(1). Mrs. . . .

DOWLING, v. E. DAVIS,, 295 F. App'x 322 (11th Cir. 2008)

. . . Section 726.109(2)(a) of the Florida Statutes provides in relevant part as follows: (2) Except as otherwise . . . Ann. § 726.109(2)(a) (West 2000) (emphasis added). . . .

WRJ DEVELOPMENT, INC. v. NORTH RING LIMITED,, 979 So. 2d 1046 (Fla. Dist. Ct. App. 2008)

. . . See § 726.109(1), Fla. Stat. The circuit court found that: (1) J.C. . . .

In Re R. KINGSLEY L. R. R. L. v. R., 518 F.3d 874 (11th Cir. 2008)

. . . . § 726.109(3) provide for the adjustment of the amount of recovery based on pre-petition repayments . . . Stat. § 726.109. Both 11 U.S.C. § 550 and Fla. . . . Stat. § 726.109(2)(a). . . . Stat. § 726.109(3). . . . Stat. § 726.109(2). . . .

In Re R. KINGSLEY L. R. R. L. v. R., 383 F.3d 874 (11th Cir. 2008)

In BANKEST CAPITAL CORPORATION, v. a, 374 B.R. 333 (Bankr. S.D. Fla. 2007)

. . . . § 726.109(1), Fla. . . .

In ENERGY SMART, INC. St. v. P. P. v., 381 B.R. 359 (Bankr. M.D. Fla. 2007)

. . . Those remedies are limited by the defenses to a fraudulent transfer action set forth in Section 726.109 . . . Stat. § 726.109 (West 2000). . Trustee’s Exh. No. 153. . . .

In OLD NAPLES SECURITIES, INC. v. H. v., 343 B.R. 310 (Bankr. M.D. Fla. 2006)

. . . . §§ 726.106(1) and 726.109. . . .

M. TERRY, Jr. v. M. JUNE, F. Sr., 432 F. Supp. 2d 635 (W.D. Va. 2006)

. . . . § 726.109(1), respectively. . . . Stat. § 726.109(1). The burden of proof remains with the Defendant as to this component as well. . . . Laws § 566.38(1) and Fla Stat. § 726.109(1). . . .

B. FREEMAN, v. FIRST UNION NATIONAL BANK,, 865 So. 2d 1272 (Fla. 2004)

. . . against a transfer or obligation under ss. 726.101-726.112, a creditor, subject to the limitations in s. 726.109 . . .

PARAGON HEALTH SERVICES, INC. v. CENTRAL PALM BEACH COMMUNITY MENTAL HEALTH CENTER, INC. d b a CMHC, d b a CMHC, D. M. D., 859 So. 2d 1233 (Fla. Dist. Ct. App. 2003)

. . . Section 726.109(2), Florida Statutes (2001), provides: [T]o the extent a transfer is voidable in an action . . .

In EVERGREEN SECURITY, LTD. R. W. Jr. v. a, 319 B.R. 245 (Bankr. M.D. Fla. 2003)

. . . . § 548(c) and Florida Statutes Section 726.109(1) defenses they are still reviewed. . . . The defenses available to actual fraud pursuant to 11 U.S.C. § 548(c) and Florida Statutes Section 726.109 . . .

In WORLD VISION ENTERTAINMENT, INC. R. W. Jr. v. LLC, 275 B.R. 641 (Bankr. M.D. Fla. 2002)

. . . transfers are not avoidable under Section 548(c) of the Bankruptcy Code and Florida Statute Section 726.109 . . . good faith defense is contained in Section 548(c) of the Bankruptcy Code and Florida Statutes Section 726.109 . . .

In TOY KING DISTRIBUTORS, INC. v. FSB,, 256 B.R. 1 (Bankr. M.D. Fla. 2000)

. . . Sections 726.108 and 726.109, Florida Statutes, govern the question of liability for transfers avoided . . . against a transfer or obligation under ss. 726.101-726.112, a creditor, subject to the limitations in § 726.109 . . . transfer or obligation to the extent necessary to satisfy the creditor’s claim; In addition, Section 726.109 . . . II, Hunsaker III, and Ranney are not first or subsequent transferees within the meaning of Section 726.109 . . . Under Section 726.109(2), Florida Statutes, a complaining creditor is limited in its recovery to the . . .

YUSEM, C. v. SOUTH FLORIDA WATER MANAGEMENT DISTRICT, a C., 770 So. 2d 746 (Fla. Dist. Ct. App. 2000)

. . . against a transfer or obligation under ss. 726.101-726.112, a creditor, subject to the limitations in s. 726.109 . . .

In Re DELSON, A. v. d b a s, M S By a a a, 247 B.R. 873 (Bankr. S.D. Fla. 2000)

. . . . §§ 726.105(1)(a) and 726.109(2)(a); (2) avoiding any subsequent transfers of said funds to third parties . . . pursuant to Fla.Stat. § 726.109(2)(b); and (3) ordering turnover of said funds from the Debtor’s wife . . . Stat. §§ 726.105(1)(a) and 726.109(2)(a). . . . under these statutes since the Florida Uniform Fraudulent Transfers Act, of which Sections 726.105 and 726.109 . . .

MANSOLILLO, v. PARTIES BY LYNN, INC., 753 So. 2d 637 (Fla. Dist. Ct. App. 2000)

. . . Id § 726.109(2). . . .

MING PROPERTIES, INC. v. STARDUST MARINE S. A. U. S. A. a U. S. A. a, 741 So. 2d 554 (Fla. Dist. Ct. App. 1999)

. . . See § 726.109(1), Fla. Stat. (1993). . . .

In GOLDBERG, L. v., 229 B.R. 877 (Bankr. S.D. Fla. 1998)

. . . THE TRANSFER OF THE MEMBERSHIP IS NOT PROTECTED UNDER THE STATUTORY DEFENSE OF § 726.109(1). . . . under § 726.105(l)(a), the transfer may not be voidable if the criteria for the statutory defense in § 726.109 . . . The defense of § 726.109(1) is not applicable; the Membership was fraudulently transferred under § 726.105 . . . The statutory defense under § 726.109(1), raised by Leven-son, is inapplicable because the Court finds . . .

E. MYERS, M. D. a v. BROOK, M. D. F. CRICK, M. D. v. V. BROOK, M. D., 708 So. 2d 607 (Fla. Dist. Ct. App. 1998)

. . . Under section 726.109(2), the creditor may recover “judgment for the value of the asset transferred, . . . as adjusted under [section 726.109] subsection 3, or the amount necessary to satisfy the creditor’s claim . . . Section 726.109(3) allows the court to adjust the amount of the judgment “as the equities may require . . . appropriate in this case because the transfer sought to be set aside was a cash payment, and section 726.109 . . .

HUNTSMAN PACKAGING CORP. v. KERRY PACKAGING CORP. N. A., 992 F. Supp. 1439 (M.D. Fla. 1998)

. . . Defendants claim that chapter 726.109(5)(b) of the Act insulates them from liability stemming from the . . . Fla.Stat. ch. 726.109(5)(b) (1995). . . .

A. YEAGER, v. SUMMIT GROUP OF CENTRAL FLORIDA, INC., 654 So. 2d 189 (Fla. Dist. Ct. App. 1995)

. . . Section 726.109(6)(b). . . .

In MIZRAHI a k a C. P. A. L. KIESTER, v. MIZRAHI, a k a C. P. A. L. KIESTER, v. MIZRAHI Co- S., 179 B.R. 322 (Bankr. M.D. Fla. 1995)

. . . Section 726.109 allows a creditor to recover judgment for the value of the asset transferred from: (a . . .

P. VEIGLE v. UNITED STATES v. F. MEAD, D. D. f k a D. HYSELL D. v. UNITED STATES P. f k a, 888 F. Supp. 1134 (M.D. Fla. 1995)

. . . . § 726.109. . . . . § 726.109 apply. . . . Vernon Hysell’s one-half interest in Parcel 1 falls within the protection afforded by Fla.Stat.Ann. § 726.109 . . . by the January 31, 1992 quitclaim deed do not fall within the relief provisions of Fla.Stat.Ann. § 726.109 . . . Fla.Stat.Ann. § 726.109(1) (West 1988). Mead was a debtor of the United States in March of 1991. . . .

MACKS, v. Y. CLINTON, v. MACKS, 843 F. Supp. 1440 (M.D. Fla. 1993)

. . . . § 726.109 (1988). . . .

UNITED STATES v. ROMANO a a VNA T., 757 F. Supp. 1331 (M.D. Fla. 1989)

. . . . § 726.109(1). Anthony Mario Romano bought the property for $10.00 plus love and affection. . . .