Florida Statute 726.109 - Full Text and Legal Analysis

The 2025 Florida Statutes

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 CourtListener

Amendments to 726.109

Annotations, Discussions, Cases:

Cases Citing Statute 726.109

Total Results: 52

Cuthill v. Greenmark, LLC (In Re World Vision Entertainment, Inc.)

275 B.R. 641, 2002 WL 497034

United States Bankruptcy Court, M.D. Florida | Filed: Mar 29, 2002 | Docket: 2449337

Cited 54 times | Published

of the Bankruptcy Code and Florida Statute Section 726.109(1) because the defendants gave reasonably equivalent

Official Committee of Unsecured Creditors of Toy King Distributors, Inc. v. Liberty Savings Bank, FSB (In Re Toy King Distributors, Inc.)

256 B.R. 1, 14 Fla. L. Weekly Fed. B 23, 43 U.C.C. Rep. Serv. 2d (West) 23, 2000 Bankr. LEXIS 1352, 2000 WL 1716185

United States Bankruptcy Court, M.D. Florida | Filed: Nov 9, 2000 | Docket: 1108287

Cited 54 times | Published

112, a creditor, subject to the limitations in § 726.109 may obtain: (a) Avoidance of the transfer or obligation

Bakst v. Wetzel

518 F.3d 874, 2008 WL 539926

Court of Appeals for the Eleventh Circuit | Filed: Feb 29, 2008 | Docket: 213287

Cited 27 times | Published

548, neither 11 U.S.C. § 550(d) nor Fla. Stat. § 726.109(3) provide for the adjustment of the amount of

Cuthill v. Kime (In Re Evergreen Security, Ltd.)

319 B.R. 245, 2003 WL 23975405

United States Bankruptcy Court, M.D. Florida | Filed: Jun 6, 2003 | Docket: 1632258

Cited 20 times | Published

the 11 U.S.C. § 548(c) and Florida Statutes Section 726.109(1) defenses they are still reviewed. Both statutes

Wiand v. Waxenberg

611 F. Supp. 2d 1299, 2009 U.S. Dist. LEXIS 22559, 2009 WL 728546

District Court, M.D. Florida | Filed: Mar 19, 2009 | Docket: 1831080

Cited 16 times | Published

obligation." Fla. Stat. § 726.106(1). Finally, § 726.109(1) provides a "good faith defense" for transfers

United States v. Romano

757 F. Supp. 1331, 1989 WL 237755

District Court, M.D. Florida | Filed: Nov 9, 1989 | Docket: 1237968

Cited 12 times | Published

for a reasonably equivalent value. Fla.Stat. § 726.109(1). Anthony Mario Romano bought the property for

Wiand v. Wells Fargo Bank, N.A.

938 F. Supp. 2d 1238, 2013 U.S. Dist. LEXIS 50349, 2013 WL 1401414

District Court, M.D. Florida | Filed: Apr 5, 2013 | Docket: 65990423

Cited 11 times | Published

defense to fraudulent transfer liability found at § 726.109(1), Florida Statutes, requires dismissal. Under

Kapila v. Espirito Santo Bank (In Re Bankest Capital Corp.)

374 B.R. 333, 21 Fla. L. Weekly Fed. B 17, 2007 Bankr. LEXIS 2714

United States Bankruptcy Court, S.D. Florida. | Filed: Aug 7, 2007 | Docket: 2278611

Cited 9 times | Published

equivalent value") fails as a matter of law. § 726.109(1), Fla. Stat., expressly provides that the "good

Baxst v. Levenson (In Re Goldberg)

229 B.R. 877, 1998 Bankr. LEXIS 1756

United States Bankruptcy Court, S.D. Florida. | Filed: Sep 29, 1998 | Docket: 138566

Cited 9 times | Published

NOT PROTECTED UNDER THE STATUTORY DEFENSE OF § 726.109(1). Even if a transfer is deemed a fraudulent

Paragon Health Services, Inc. v. CENTRAL PALM BEACH COMMUNITY MENTAL HEALTH CENTER, INC.

859 So. 2d 1233, 2003 WL 22658104

District Court of Appeal of Florida | Filed: Nov 12, 2003 | Docket: 2561411

Cited 8 times | Published

which they held jointly with their husbands. Section 726.109(2), Florida Statutes (2001), provides: [T]o

National Auto Service Centers, Inc. v. F/R 550, LLC

192 So. 3d 498, 2016 Fla. App. LEXIS 4820, 2016 WL 1238265

District Court of Appeal of Florida | Filed: Mar 30, 2016 | Docket: 3049198

Cited 6 times | Published

creditor, execution upon the transferred properties. § 726.109. Section 726.110 provides fixed times in which

Dzikowski v. Delson (In Re Delson)

247 B.R. 873, 13 Fla. L. Weekly Fed. B 166, 2000 Bankr. LEXIS 428

United States Bankruptcy Court, S.D. Florida. | Filed: Apr 20, 2000 | Docket: 1826582

Cited 6 times | Published

funds to third parties pursuant to Fla.Stat. § 726.109(2)(b); and (3) ordering turnover of said funds

Musselman v. Jasgur (In Re Seminole Walls & Ceilings Corp.)

446 B.R. 572, 2011 WL 768745

United States Bankruptcy Court, M.D. Florida | Filed: Mar 2, 2011 | Docket: 2059246

Cited 5 times | Published

Assets in Good Faith[129] Under Florida Statute § 726.109(1), a transferee of a purported fraudulent transfer

Wiand v. Cloud

919 F. Supp. 2d 1319, 2013 WL 247004, 2013 U.S. Dist. LEXIS 8972

District Court, M.D. Florida | Filed: Jan 23, 2013 | Docket: 65988297

Cited 4 times | Published

provision, the applicable statute is Fla. Stat. § 726.109(1) that provides a “good faith” defense for transfers

Wiand v. Morgan

919 F. Supp. 2d 1342, 2013 WL 247072, 2013 U.S. Dist. LEXIS 8995

District Court, M.D. Florida | Filed: Jan 23, 2013 | Docket: 65988298

Cited 4 times | Published

presents. 5. affirmative defense Fla. Stat. § 726.109(1) provides a “good faith” defense for transfers

Desak v. Vanlandingham

98 So. 3d 710, 2012 WL 4746471, 2012 Fla. App. LEXIS 16833

District Court of Appeal of Florida | Filed: Oct 5, 2012 | Docket: 60312535

Cited 4 times | Published

subsequent, good faith purchasers for value. Section 726.109(2), Florida Statutes (2002), provides: .

Kapila v. Integra Bank, N.A. (In Re Pearlman)

440 B.R. 569, 22 Fla. L. Weekly Fed. B 625, 2010 Bankr. LEXIS 4314, 54 Bankr. Ct. Dec. (CRR) 32, 2010 WL 4977118

United States Bankruptcy Court, M.D. Florida | Filed: Dec 2, 2010 | Docket: 2062957

Cited 4 times | Published

548(c) of the Bankruptcy Code and Fla. Stat. § 726.109(1).[25] Both of these statutes "provide an affirmative

Kiester v. Mizrahi (In Re Mizrahi)

179 B.R. 322, 8 Fla. L. Weekly Fed. B 416, 1995 Bankr. LEXIS 327, 1995 WL 116253

United States Bankruptcy Court, M.D. Florida | Filed: Mar 10, 1995 | Docket: 1499887

Cited 4 times | Published

the voidability of the original transfer. Section 726.109 allows a creditor to recover judgment for the

Gary McCalla and Dianne McCalla v. E. C. Kenyon Construction Company, etc.

183 So. 3d 1192

District Court of Appeal of Florida | Filed: Jan 14, 2016 | Docket: 3028644

Cited 3 times | Published

the asset transferred or its proceeds. Section 726.109(2), Florida Statutes, provides that “to the

National Maritime Services, Inc. v. Glenn F. Straub

776 F.3d 783, 2015 A.M.C. 1321, 2015 WL 151703, 2015 U.S. App. LEXIS 511

Court of Appeals for the Eleventh Circuit | Filed: Jan 13, 2015 | Docket: 2624046

Cited 3 times | Published

associated defenses, see Fla. Stat. § 726.109. Although subsection (1) of section' 726.106 provides

Kapila v. TD Bank, N.A. (In Re Pearlman)

440 B.R. 900, 22 Fla. L. Weekly Fed. B 623, 2010 Bankr. LEXIS 4313, 2010 WL 4977126

United States Bankruptcy Court, M.D. Florida | Filed: Dec 2, 2010 | Docket: 2068192

Cited 3 times | Published

548(c) of the Bankruptcy Code and Florida Statute § 726.109(1). Both of these statutes "provide an affirmative

Welch v. Regions Bank (In re Mongelluzzi)

587 B.R. 392

United States Bankruptcy Court, M.D. Florida | Filed: Jun 20, 2018 | Docket: 65790649

Cited 2 times | Published

Transfers to be constructively fraudulent under § 726.109(1), they are not subject to avoidance because

Langdale Capital Assets, Inc. v. Woodard (In re Berkman)

517 B.R. 288

United States Bankruptcy Court, M.D. Florida | Filed: Sep 29, 2014 | Docket: 65786709

Cited 2 times | Published

fraudulent transfer actions provided for by Fla. Stat. § 726.109(1). While an inquiry into a party’s good faith

National Maritime Services, Inc. v. Straub

979 F. Supp. 2d 1322, 2013 WL 5770677, 2013 U.S. Dist. LEXIS 152869

District Court, S.D. Florida | Filed: Oct 24, 2013 | Docket: 65995101

Cited 2 times | Published

subsequent transferee or obligee.” Fla. Stat. § 726.109(1). National Maritime emphasizes several badges

Soifer v. Bozarth (In re Lydia Cladek, Inc.)

494 B.R. 555, 2013 WL 3943279, 2013 Bankr. LEXIS 3091

United States Bankruptcy Court, M.D. Florida | Filed: Jul 2, 2013 | Docket: 65785245

Cited 2 times | Published

Additionally, 11 U.S.C. § 548(c) and Fla. Stat. § 726.109(1) provide transferees with a defense to fraudulent

Energy Smart, Inc. St. Petersburg v. Musselman (In Re Energy Smart, Inc.)

381 B.R. 359, 2007 Bankr. LEXIS 4422, 2007 WL 4699047

United States Bankruptcy Court, M.D. Florida | Filed: Mar 22, 2007 | Docket: 1783125

Cited 2 times | Published

a fraudulent transfer action set forth in Section 726.109. A transfer is not voidable pursuant to Section

Laptopplaza, Inc. v. Wells Fargo Bank, NA

264 So. 3d 1049

District Court of Appeal of Florida | Filed: Jan 30, 2019 | Docket: 64705084

Cited 1 times | Published

for value or from any subsequent transferee. § 726.109(2), Fla. Stat. (2014) (emphasis added). In addition

Welch v. Synovus Bank

517 B.R. 269, 2014 U.S. Dist. LEXIS 86432, 2014 WL 2882938

District Court, M.D. Florida | Filed: Jun 25, 2014 | Docket: 65516876

Cited 1 times | Published

transfer was made.” (Id. at 29). (quoting Fla. Stat. § 726.109(2)(a); 11 U.S.C. § 550(a)(1)). The Trustee maintains

Smith v. Effective Teleservices, Inc.

133 So. 3d 1048, 2014 WL 51686, 2014 Fla. App. LEXIS 144

District Court of Appeal of Florida | Filed: Jan 8, 2014 | Docket: 60238652

Cited 1 times | Published

is voidable at the instance of a creditor. See § 726.109(1), Fla. Stat. (2010) (using the word “voidable”

Stettin v. Dan Marino Foundation, Inc. (In re Rothstein Rosenfeldt Adler, P.A.)

483 B.R. 15

United States Bankruptcy Court, S.D. Florida. | Filed: Oct 31, 2012 | Docket: 65784544

Cited 1 times | Published

See 11 U.S.C. § 548(c), and Florida Statute § 726.109(4). Section 548(c) provides in relevant part that

Perlman v. Wells Fargo Bank, N.A.

830 F. Supp. 2d 1308, 2011 WL 5873054, 2011 U.S. Dist. LEXIS 134871

District Court, S.D. Florida | Filed: Nov 22, 2011 | Docket: 65977250

Cited 1 times | Published

Code is essentially equivalent to Fla. Stat. § 726.109(2). Section 550(a)(1) provides: "Except as otherwise

Wrj Development, Inc. v. North Ring Ltd.

979 So. 2d 1046, 2008 Fla. App. LEXIS 3883, 2008 WL 723841

District Court of Appeal of Florida | Filed: Mar 19, 2008 | Docket: 1714265

Cited 1 times | Published

establishing a defense to the fraudulent transfer. See § 726.109(1), Fla. Stat. The circuit court found that: (1)

Veigle v. United States

888 F. Supp. 1134, 75 A.F.T.R.2d (RIA) 1660, 1995 U.S. Dist. LEXIS 3234

District Court, M.D. Florida | Filed: Feb 28, 1995 | Docket: 65997513

Cited 1 times | Published

raising any defense enumerated in Fla.Stat.Ann. § 726.109. Thus Mead’s transfer of Parcels 1, 2, and 3 to

Recovery Agents, LLC v. Estate of Peter Tutko, Tutko

District Court of Appeal of Florida | Filed: Jan 22, 2025 | Docket: 69565186

Published

stave off what it saw as impending disaster. See § 726.109(1) ("A transfer or obligation is not voidable

SE Property Holdings, LLC v. Neverve LLC

Court of Appeals for the Eleventh Circuit | Filed: Apr 11, 2023 | Docket: 65769688

Published

Argued: Nov 18, 2022

(Emphasis added). And Florida Statute § 726.109, which establishes certain lim- itations

MANE FL CORP v. CALE BECKMAN and MALGORZATA BECKMAN

District Court of Appeal of Florida | Filed: Jan 4, 2023 | Docket: 66698547

Published

against any subsequent transferee or obligee.” § 726.109(1), Fla. Stat. (2017). “Value is given for a transfer

RICHARD CLEVELAND v. WESTPORT RECOVERY CORPORATION

District Court of Appeal of Florida | Filed: Dec 8, 2021 | Docket: 61601899

Published

sought monetary damages against Appellant under section 726.109(2), Florida Statutes (2016). In their answer

Laptopplaza, Inc. v. Wells Fargo Bank, NA

264 So. 3d 1049

District Court of Appeal of Florida | Filed: Jan 30, 2019 | Docket: 64705085

Published

for value or from any subsequent transferee. § 726.109(2), Fla. Stat. (2014) (emphasis added). In addition

Nieto Villamizar v. Luna Capital Partners

District Court of Appeal of Florida | Filed: Oct 24, 2018 | Docket: 8110466

Published

erroneously reads the term “good faith” in section 726.109(1), Florida Statutes (2017), within Chapter

Nieto Villamizar v. Luna Capital Partners

260 So. 3d 355

District Court of Appeal of Florida | Filed: Oct 24, 2018 | Docket: 8074511

Published

erroneously reads the term “good faith” in section 726.109(1), Florida Statutes (2017), within Chapter

Furr v. TD Bank, N.A. (In re Rollaguard Security, LLC)

570 B.R. 859

United States Bankruptcy Court, S.D. Florida. | Filed: Jul 27, 2017 | Docket: 65789917

Published

statutes, e.g., section 548(c) and Fla. Stat. § 726.109(1), provide affirmative defenses that focus on

Stavrou v. Destination Boat Clubs, Inc.

226 So. 3d 293, 2017 WL 2373446, 2017 Fla. App. LEXIS 7774

District Court of Appeal of Florida | Filed: May 31, 2017 | Docket: 6067544

Published

unpaid amount of the underlying judgment. See § 726.109(2), Fla. Stat. (2015) (explaining that “to the

Cameron v. Lifsey (In re Carpets, Inc.)

522 B.R. 718, 25 Fla. L. Weekly Fed. B 156, 2014 Bankr. LEXIS 5152, 60 Bankr. Ct. Dec. (CRR) 116

United States Bankruptcy Court, M.D. Florida | Filed: Dec 23, 2014 | Docket: 65787046

Published

§ 726.105 or § 726.106, Florida Statutes.2 Section 726.109, Florida Statutes, provides that to the extent

Wiand v. Dancing $, LLC

919 F. Supp. 2d 1296, 2013 WL 246731, 2013 U.S. Dist. LEXIS 8969

District Court, M.D. Florida | Filed: Jan 23, 2013 | Docket: 65988296

Published

. Dancing $ answered that, per Fla. Stat. § 726.109, it was a good faith transferee without knowledge

Menotte v. Champalanne (In Re Champalanne)

425 B.R. 707, 2010 Bankr. LEXIS 417

United States Bankruptcy Court, S.D. Florida. | Filed: Feb 5, 2010 | Docket: 1497324

Published

transferee of a fraudulent transfer. Fla. Stat. § 726.109(2). Thus, although the Trustee cannot impose an

In Re Davis

403 B.R. 914, 2009 Bankr. LEXIS 1063, 2009 WL 1080019

United States Bankruptcy Court, M.D. Florida | Filed: Apr 22, 2009 | Docket: 1462268

Published

Stat. § 726.108(1) (2008). Florida Statutes section 726.109 provides, among other things: Except as otherwise

Bakst v. Wetzel

383 F.3d 874

Court of Appeals for the Eleventh Circuit | Filed: Feb 29, 2008 | Docket: 65656502

Published

548, neither 11 U.S.C. § 550(d) nor Fla. Stat. § 726.109(3) provide for the adjustment of the amount of

Mansolillo v. Parties by Lynn, Inc.

753 So. 2d 637, 2000 Fla. App. LEXIS 2004, 2000 WL 227938

District Court of Appeal of Florida | Filed: Mar 1, 2000 | Docket: 64795931

Published

the creditor’s claim, whichever is less.” Id § 726.109(2). In this case the plaintiffs’ judgment was

Ming Properties, Inc. v. Stardust Marine S.A.

741 So. 2d 554, 1999 Fla. App. LEXIS 10098, 1999 WL 543278

District Court of Appeal of Florida | Filed: Jul 28, 1999 | Docket: 64791058

Published

purchaser for reasonably equivalent value. See § 726.109(1), Fla. Stat. (1993). In determining whether

Myers v. Brook

708 So. 2d 607, 1998 Fla. App. LEXIS 1868, 1998 WL 80460

District Court of Appeal of Florida | Filed: Feb 27, 1998 | Docket: 64779930

Published

case was based solely on Florida law. Under section 726.109(2), the creditor may recover “judgment for

Yeager v. Summit Group of Central Florida, Inc.

654 So. 2d 189, 1995 Fla. App. LEXIS 3707, 1995 WL 214966

District Court of Appeal of Florida | Filed: Apr 13, 1995 | Docket: 64755876

Published

made in the ordinary course of business.” Section 726.109(6)(b). This provision modifies the holding

Macks v. Clinton

843 F. Supp. 1440, 1993 WL 556934

District Court, M.D. Florida | Filed: Nov 13, 1993 | Docket: 65988897

Published

this contention is meritless. See Fla. StatAnn. § 726.109 (1988). Because the Court concludes that there