Justia Bankruptcy Opinion SummariesArticles Posted in Florida Supreme Court
1944 Beach Boulevard, LLC v. Live Oak Banking Co.
In this case involving the interpretation of Fla. Stat. 679.5061(3) the Supreme Court held that a financing statement that fails correctly to name the debtors, as required by Florida law, is seriously misleading and therefore ineffective because Florida's filing office does not apply a "standard search logic."Section 679.5061(3) creates a safe harbor for financing statements that are otherwise ineffective to perfect a security interest due to their failure correctly to name the debtor. The safe harbor applies when a financing statement that fails correctly to name the debtor is disclosed by a search of the filing office's records under the debtor's correct name "using the filing office's standard search logic, if any." The United States Court of Appeals for the Eleventh Circuit asked the Supreme Court to delineate the proper scope of the "search" of the filing office's records, as the term is used in the safe harbor provision. The Supreme Court answered that the filing office's use of a "standard search logic" is necessary to trigger the safe harbor protection of section 679.5061(3). View "1944 Beach Boulevard, LLC v. Live Oak Banking Co." on Justia Law