Florida Statutes

Fla. Stat. § 697.04 (2025)

Future advances may be secured.

✓ 2025 Florida Statutes — current through the 2025 Regular Session

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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.

Notes of Decisions

Cited in 30 cases (1 in the last 5 years), 1954–2021 · leading case: Sonia Uransky, as Tr. in Bankr. of Dean Barnard v. First Fed. Sav. & Loan Ass'n of Fort Myers, 684 F.2d 750 (1st Cir. 1982).

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Sonia Uransky, as Tr. in Bankr. of Dean Barnard v. First Fed. Sav. & Loan Ass'n of Fort Myers, 684 F.2d 750 (1st Cir. 1982). · cites it 5× “It therefore concluded that under Fla. Stat.Ann. § 697.04, the future advance was secured by the future advances clause in the mortgage.”

Amadou Wane v. The Loan Corp., 552 F. App'x 908 (11th Cir. 2014). · cites it 3× “Wane is incorrect, however, in associating the mortgage’s negative amortization feature with a future advance authorized by Fla. Stat. § 697.04 . 7 A future advance clause is a “contractual term in a security agreement covering additional loaned amounts on present collateral or…”

Nikooie v. JPMorgan Chase Bank, N.A., 183 So. 3d 424 (Fla. 3d DCA 2014). · cites it 4× “We conclude that we should not ignore the non-payment 12 “Each advance” includes both the initial disbursement of a mortgage loan and any subsequent advances, while “future advance” refers to subsequent disbursements described in section 697.04, Florida Statutes. The…”

Indus. Supply Corp. v. Bricker, 306 So. 2d 133 (Fla. 2d DCA 1975). · cites it 8× “The appellants contend that appellees' mortgage was not entitled to priority because of its failure to meet the requirements of Fla. Stat. § 697.04 (1971). The obligation secured by a mortgage for future advances is the single binding promise of the mortgagor made at the outset…”

Scott Cleveland & Stephanie Cleveland v. Crown Fin., LLC, 183 So. 3d 1206 (Fla. 1st DCA 2016). · cites it 2× “Paragraph 24 provided: Future Advances: Pursuant to F.S. 697.04, this mortgage shall secure not only the existing indebtedness evidenced by the note but also such future advances as may be made by Mortgagee to Mortgagor within 20 years from the date hereof to the same extent as…”

Nack Holdings, LLC v. Kalb, 13 So. 3d 92 (Fla. 3d DCA 2009). · cites it 2× “A mortgage used to secure future advances will contain an express “future advances” provision consistent with section 697.04, Florida Statutes (2008), and will thereby confer on those advances the same date of record priority as the original mortgage.”

Mason v. Avdoyan, 299 So. 2d 603 (Fla. 4th DCA 1974). · cites it 7× “04 to delete any reference to personalty, stating in the preamble: "Whereas, section 697.04, Florida Statutes provides that any mortgage or other instrument given for the purpose of creating a lien on real or personal property may secure future advances as well as the existing…”

Snead Constr. Corp. v. First Fed. Sav. & Loan Ass'n, 342 So. 2d 517 (Fla. 1st DCA 1976). · cites it 6× “Moreover, the lenders’ mortgages satisfy the requirements of § 697.04, F.S. 1975. To speak of a construction loan mortgage as one securing “future advances,” and therefore subject to § 697.”

United States v. Am. Nat'l Bank of Jacksonville & Title & Trust Co. of Florida, 255 F.2d 504 (5th Cir. 1958). “F.S.A. § 697.04. Downing v. First National Bank, Fla.”

Simpson v. Simpson, 123 So. 2d 289 (Fla. 2d DCA 1960). · cites it 4× “Section 697.04, Florida Statutes, F.S.A., provides: "(1) Hereafter, any mortgage or other instrument given for the purpose of creating a lien on real or personal property, or both, including agricultural, horticultural, or fruit crops, planted, growing, or to be planted, grown,…”

United States v. First Nat. Bank of Crestview, 513 So. 2d 179 (Fla. 1st DCA 1987). · cites it 2× “Under Section 697.04(1)(a), Florida Statutes, any mortgage which secures not only existing indebtednesses, but also future advances made within 20 years of the original mortgage, whether the advances are obligatory or at the option of the lender, has priority over any subsequent…”

Downing v. First Nat'l Bank of Lake City, 81 So. 2d 486 (Fla. 1955). “167 , although a statute enacted in 1941, now being Section 697.04 F.S. 1951, F.S.A., limits the scope of provisions for future advances.”

Show all 30 citing cases →

— 697.04(1) — 3 cases

Sonia Uransky, as Tr. in Bankr. of Dean Barnard v. First Fed. Sav. & Loan Ass'n of Fort Myers, 684 F.2d 750 (1st Cir. 1982). “It therefore concluded that under Fla. Stat.Ann. § 697.04, the future advance was secured by the future advances clause in the mortgage.”

Mason v. Avdoyan, 299 So. 2d 603 (Fla. 4th DCA 1974). “04 to delete any reference to personalty, stating in the preamble: "Whereas, section 697.04, Florida Statutes provides that any mortgage or other instrument given for the purpose of creating a lien on real or personal property may secure future advances as well as the existing…”

In re Mar-Bel Cabinets, Inc., 91 B.R. 172 (Bankr. M.D. Fla. 1988).

— 697.04(1)(a) — 4 cases

United States v. First Nat. Bank of Crestview, 513 So. 2d 179 (Fla. 1st DCA 1987). “Under Section 697.04(1)(a), Florida Statutes, any mortgage which secures not only existing indebtednesses, but also future advances made within 20 years of the original mortgage, whether the advances are obligatory or at the option of the lender, has priority over any subsequent…”

United Nat. Bank v. Tellam, 644 So. 2d 97 (Fla. 3d DCA 1994).

2000 Presidential Way LLC v. The Bank of New York Mellon, First Banks, Inc., & Mortg. Elec. Reg. Sys. (Fla. 4th DCA 2021).

Razak v. Marina Club of Tampa Homeowners, 968 So. 2d 616 (Fla. 2d DCA 2007).

— 697.04(1)(b) — 2 cases

Michael Steinberg v. Wells Fargo Bank, N.A. (Fla. 4th DCA 2015).

NCNB Nat'l Bank of Florida, N.A. v. Barnett Bank of Tampa, N.A., 560 So. 2d 360 (Fla. 2d DCA 1990).

— 697.04(2) — 2 cases

Snead Constr. Corp. v. First Fed. Sav. & Loan Ass'n, 342 So. 2d 517 (Fla. 1st DCA 1976). “Moreover, the lenders’ mortgages satisfy the requirements of § 697.04, F.S. 1975. To speak of a construction loan mortgage as one securing “future advances,” and therefore subject to § 697.”

Snead Const. v. First Fed. S & L Ass'n, 342 So. 2d 517 (Fla. 1st DCA 1976).

— 697.04(3) — 2 cases

Silver Waters Corp. v. Murphy, 177 So. 2d 897 (Fla. 2d DCA 1965).

In re Mar-Bel Cabinets, Inc., 91 B.R. 172 (Bankr. M.D. Fla. 1988).

— 697.04(l)(a) — 1 case

Whitice Bonding Agency, Inc. v. Levitz, 559 So. 2d 755 (Fla. 4th DCA 1990).

— 697.04(l)(b) — 2 cases

Steinberg v. Wells Fargo Bank, N.A., 178 So. 3d 473 (Fla. 4th DCA 2016).

NCNB Nat'l Bank of Florida, N.A. v. Barnett Bank of Tampa, N.A., 560 So. 2d 360 (Fla. 2d DCA 1990).

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