Florida Statute 697.04 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XL
REAL AND PERSONAL PROPERTY

Chapter 697
INSTRUMENTS DEEMED MORTGAGES AND THE NATURE OF A MORTGAGE

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F.S. 697.04

697.04 Future advances may be secured.—

(1)(a) Any mortgage or other instrument given for the purpose of creating a lien on real property, or on any interest in a leasehold upon real property, may, and when so expressed therein shall, secure not only existing indebtedness, but also such future advances, whether such advances are obligatory or to be made at the option of the lender, or otherwise, as are made within 20 years from the date thereof, to the same extent as if such future advances were made on the date of the execution of such mortgage or other instrument, although there may be no advance made at the time of the execution of such mortgage or other instrument and although there may be no indebtedness outstanding at the time any advance is made. Such lien, as to third persons without actual notice thereof, shall be valid as to all such indebtedness and future advances from the time the mortgage or other instrument is filed for record as provided by law.

(b) The total amount of indebtedness that may be so secured may decrease or increase from time to time, but the total unpaid balance so secured at any one time shall not exceed a maximum principal amount which must be specified in such mortgage or other instrument, plus interest thereon; except that the mortgagor or her or his successor in title is authorized to file for record a notice limiting the maximum principal amount that may be so secured to an amount not less than the amount actually advanced at the time of such filing, provided a copy of such filing is also sent by certified mail to the mortgagee and, in the case of an open-end or revolving credit agreement, the mortgagor surrenders to the mortgagee all credit cards, checks, or other devices used to obtain further advances at the time of filing the notice, which notice shall be recorded and shall be effective from the date of filing. Notwithstanding the foregoing, any increase in the principal balance as a result of negative amortization or deferred interest shall be secured by the mortgage; and any disbursements made for the payment of taxes, levies, or insurance on the property covered by the lien, and any advances or disbursements made under a construction loan agreement referred to in a mortgage to enable completion of the contemplated improvement, with interest on such advances or disbursements, are secured by the mortgage or other instrument even though the mortgage or other instrument does not provide for future advances, or the advances or disbursements cause the total indebtedness to exceed the face amount stated in the instrument. This subsection does not apply to any mortgages, shipping contracts, or other instruments made and given by naval stores operators and producers to secure existing loans and future advances by naval stores factors.

(2) As against the rights of creditors or subsequent purchasers for a valuable consideration, actual notice or record notice of advances to be made at the option of the lender, under the terms of such mortgage or other instrument, shall be valid only as to such advances as are to be made within 20 years from the date of such mortgage or other instrument; however, this subsection does not apply to any mortgages, shipping contracts, or other instruments made and given by naval stores operators and producers to secure existing loans and future advances by naval stores factors. Notwithstanding anything in this section to the contrary, future advances made pursuant to the terms of a reverse mortgage loan (as defined in s. 103(bb) of the federal Truth in Lending Act, 15 U.S.C. ss. 1601 et seq.) shall be secured to the same extent as if such future advances were made on the date of execution of the mortgage, irrespective of the date of any such advance.

(3) Any such mortgage or other instrument shall be prior in dignity to all subsequent encumbrances, including statutory liens, except landlords’ liens.

History.—ss. 1, 2, 3, ch. 20846, 1941; s. 1, ch. 28116, 1953; ss. 1, 2, ch. 61-135; s. 3, ch. 63-212; s. 1, ch. 70-34; s. 11, ch. 83-267; s. 10, ch. 83-311; s. 215, ch. 92-303; s. 7, ch. 96-210; s. 1761, ch. 97-102.

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Amendments to 697.04

Arrestable Offenses / Crimes under Fla. Stat. 697.04

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

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 697.04.

Annotations, Discussions, Cases:

Cases Citing Statute 697.04

Total Results: 20

2000 PRESIDENTIAL WAY LLC v. THE BANK OF NEW YORK MELLON, FIRST BANKS, INC., and MORTGAGE ELECTRONIC REGISTRATION SYSTEMS

Court: District Court of Appeal of Florida | Date Filed: 2021-08-04

Snippet: grasp of the dragnet clause. 3 Section 697.04(1)(a), Florida Statutes (2005), states that a mortgage

Steinberg v. Wells Fargo Bank, N.A.

Court: District Court of Appeal of Florida | Date Filed: 2016-10-21

Citation: 178 So. 3d 473, 2015 WL 6161123

Snippet: 08(l)(b) should be read in conjunction with section 697.04(l)(b), Florida Statutes (2010), entitled “Future

Scott Cleveland and Stephanie Cleveland v. Crown Financial, LLC

Court: District Court of Appeal of Florida | Date Filed: 2016-01-14

Citation: 183 So. 3d 1206

Snippet: 24 provided: Future Advances: Pursuant to F.S. 697.04, this mortgage shall secure not only the existing

Michael Steinberg v. Wells Fargo Bank, N.A.

Court: District Court of Appeal of Florida | Date Filed: 2015-10-21

Snippet: 08(1)(b) should be read in conjunction with section 697.04(1)(b), Florida Statutes (2010), entitled “Future

Nikooie v. JPMorgan Chase Bank, N.A.

Court: District Court of Appeal of Florida | Date Filed: 2014-12-10

Citation: 183 So. 3d 424, 2014 Fla. App. LEXIS 20020, 2014 WL 6911148

Snippet: section secures future advances, as provided in s. 697.04, the tax shall be paid at the time of recordation

Glenn Wright Homes (Delray) LLC v. Lowy

Court: District Court of Appeal of Florida | Date Filed: 2009-09-30

Citation: 18 So. 3d 693, 2009 Fla. App. LEXIS 14524, 2009 WL 3103849

Snippet: section secures future advances, as provided in s. 697.04, the tax shall be paid at the time of recordation

NACK HOLDINGS, LLC v. Kalb

Court: District Court of Appeal of Florida | Date Filed: 2009-05-20

Citation: 13 So. 3d 92, 2009 Fla. App. LEXIS 5787, 2009 WL 1393324

Snippet: "future advances" provision consistent with section 697.04, Florida Statutes (2008), and will thereby confer

Razak v. MARINA CLUB OF TAMPA HOMEOWNERS

Court: District Court of Appeal of Florida | Date Filed: 2007-10-10

Citation: 968 So. 2d 616, 2007 WL 2935001

Snippet: provides him the protection provided by section 697.04(1)(a), Florida Statutes (2004), which states: Any

Department of Corrections v. Cosme

Court: District Court of Appeal of Florida | Date Filed: 2006-01-13

Citation: 917 So. 2d 1049, 2006 WL 64435

Snippet: relative to the MPA treatment. Jackson, 907 So.2d at 697. [4] Certiorari relief has been granted to the Department

Gardner v. Guldi

Court: District Court of Appeal of Florida | Date Filed: 1999-01-15

Citation: 724 So. 2d 186, 1999 Fla. App. LEXIS 275, 1999 WL 12707

Snippet: is an open-ended mortgage authorized by section 697.04, Florida Statutes, and contains a future advance

Soca v. State

Court: Supreme Court of Florida | Date Filed: 1996-04-25

Citation: 673 So. 2d 24, 1996 WL 196588

Snippet: United States, 362 U.S. 217, 239, 80 S.Ct. 683, 697, 4 L.Ed.2d 668 (1960) (holding items of evidence seized

UNITED NAT. BANK v. Tellam

Court: District Court of Appeal of Florida | Date Filed: 1994-09-07

Citation: 644 So. 2d 97, 1994 WL 479132

Snippet: advances ... as are made within 20 years... ." § 697.04(1)(a), Florida Statutes (1993) (emphasis added)

Whitice Bonding Agency, Inc. v. Levitz

Court: District Court of Appeal of Florida | Date Filed: 1990-05-02

Citation: 559 So. 2d 755, 1990 WL 57993

Snippet: encumbering the collateral and creating a lien. § 697.04(l)(a), Fla.Stat. (1987). The initial mortgage secured

NCNB National Bank of Florida, N.A. v. Barnett Bank of Tampa, N.A.

Court: District Court of Appeal of Florida | Date Filed: 1990-04-27

Citation: 560 So. 2d 360, 1990 WL 52322

Snippet: loan which was secured by its mortgage. Section 697.04(l)(b), Florida Statutes (1985), which provides

United States v. First Nat. Bank of Crestview

Court: District Court of Appeal of Florida | Date Filed: 1987-09-09

Citation: 513 So. 2d 179, 1987 Fla. App. LEXIS 12148, 12 Fla. L. Weekly 2213

Snippet: signed by the bank is overbroad. Under Section 697.04(1)(a), Florida Statutes, any mortgage which secures

Jones v. State

Court: District Court of Appeal of Florida | Date Filed: 1985-02-26

Citation: 466 So. 2d 301, 24 Educ. L. Rep. 603

Snippet: himself as the principal of "Douglas MacArthur" (R.697).[4] Barnes stated that he was "starting a course,"

Cabot v. First National Bank of Fort Walton Beach

Court: District Court of Appeal of Florida | Date Filed: 1979-03-14

Citation: 369 So. 2d 89, 1979 Fla. App. LEXIS 14370

Snippet: known as an open-end mortgage authorized by § 697.-04, Florida Statutes. The mortgage contains the following

Stewart Arms Apartments, Ltd. v. State Department of Revenue

Court: District Court of Appeal of Florida | Date Filed: 1978-09-27

Citation: 362 So. 2d 1003, 1978 Fla. App. LEXIS 16434

Snippet: chapter secures future advances, as provided in § 697.04, the tax shall be paid at the time of execution

Ago

Court: Florida Attorney General Reports | Date Filed: 1978-03-03

Snippet: s. 199.052(7)(d), F. S. (1976) Supp.), and s. 697.04, F. S. 1975, which provide that any mortgage given

McArthur v. State

Court: Supreme Court of Florida | Date Filed: 1977-09-30

Citation: 351 So. 2d 972

Snippet: Taylor v. Louisiana, 419 U.S. at 530, 95 S.Ct. at 697. [4] The 1975 Legislature lowered the statutory age