Florida Statute 726.109 | Lawyer Caselaw & Research

The 2024 Florida Statutes

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

Chapter 726
FRAUDULENT TRANSFERS

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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 Citing Statute 726.109

Total Results: 20

Wurtzebach, Wurtzebach v. Flooring Depot FTL, Inc.

Court: District Court of Appeal of Florida | Date Filed: 2024-02-21

Snippet: equivalent value, in violation of section 726.106(1) or 726.109(2), Florida Statutes. Specifically, Count I alleged

MANE FL CORP v. CALE BECKMAN and MALGORZATA BECKMAN

Court: District Court of Appeal of Florida | Date Filed: 2023-01-04

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

RICHARD CLEVELAND v. WESTPORT RECOVERY CORPORATION

Court: District Court of Appeal of Florida | Date Filed: 2021-12-08

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

Laptopplaza, Inc. v. Wells Fargo Bank, NA

Court: District Court of Appeal of Florida | Date Filed: 2019-01-30

Citation: 264 So. 3d 1049

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

Laptopplaza, Inc. v. Wells Fargo Bank, NA

Court: District Court of Appeal of Florida | Date Filed: 2019-01-30

Citation: 264 So. 3d 1049

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

Nieto Villamizar v. Luna Capital Partners

Court: District Court of Appeal of Florida | Date Filed: 2018-10-24

Snippet: erroneously reads the term “good faith” in section 726.109(1), Florida Statutes (2017), within Chapter 726

Nieto Villamizar v. Luna Capital Partners

Court: District Court of Appeal of Florida | Date Filed: 2018-10-24

Citation: 260 So. 3d 355

Snippet: erroneously reads the term “good faith” in section 726.109(1), Florida Statutes (2017), within Chapter 726

Stavrou v. Destination Boat Clubs, Inc.

Court: District Court of Appeal of Florida | Date Filed: 2017-05-31

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

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

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

Court: District Court of Appeal of Florida | Date Filed: 2016-03-30

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

Snippet: execution upon the transferred properties. § 726.109. Section 726.110 provides fixed times in which

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

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

Citation: 183 So. 3d 1192

Snippet: a creditor, subject to the limitations in s. 726.109 may obtain: (a) Avoidance of the transfer

Edwards v. Airline Support Group, Inc.

Court: District Court of Appeal of Florida | Date Filed: 2014-05-28

Citation: 138 So. 3d 1209, 2014 WL 2197625, 2014 Fla. App. LEXIS 8092

Snippet: a creditor, subject to the limitations in s. 726.109 may obtain: (a) Avoidance of the transfer or obligation

Smith v. Effective Teleservices, Inc.

Court: District Court of Appeal of Florida | Date Filed: 2014-01-08

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

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

Desak v. Vanlandingham

Court: District Court of Appeal of Florida | Date Filed: 2012-10-05

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

Snippet: subsequent, good faith purchasers for value. Section 726.109(2), Florida Statutes (2002), provides: . "No

Schrager v. Howland

Court: District Court of Appeal of Florida | Date Filed: 2010-10-27

Citation: 46 So. 3d 167, 2010 Fla. App. LEXIS 16284, 2010 WL 4226249

Snippet: appropriate remedy under sections 726.108 and 726.109, Florida Statutes (2001). The findings of the bankruptcy

Wrj Development, Inc. v. North Ring Ltd.

Court: District Court of Appeal of Florida | Date Filed: 2008-03-19

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

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

Freeman v. First Union Nat. Bank

Court: Supreme Court of Florida | Date Filed: 2004-01-29

Citation: 865 So. 2d 1272, 2004 WL 178598

Snippet: a creditor, subject to the limitations in s. 726.109 may obtain: (a) Avoidance of the transfer or obligation

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

Court: District Court of Appeal of Florida | Date Filed: 2003-11-12

Citation: 859 So. 2d 1233, 2003 WL 22658104

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

Yusem v. SO. FLA. WATER MANAGEMENT DIST.

Court: District Court of Appeal of Florida | Date Filed: 2000-11-08

Citation: 770 So. 2d 746, 2000 WL 1671507

Snippet: a creditor, subject to the limitations in s. 726.109 may obtain: (a) Avoidance of the transfer or obligation

Mansolillo v. Parties by Lynn, Inc.

Court: District Court of Appeal of Florida | Date Filed: 2000-03-01

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

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

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

Court: District Court of Appeal of Florida | Date Filed: 1999-07-28

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

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