Fla. Stat. 651.071
Contracts as preferred claims on liquidation or receivership

(1)

In the event of receivership or liquidation proceedings against a provider, all continuing care and continuing care at-home contracts executed by a provider are deemed preferred claims against all assets owned by the provider; however, such claims are subordinate to any secured claim. For purposes of s. 631.271, such contracts are deemed Class 2 claims.

(2)

Any other claims not set forth in subsection (1) shall be considered as general creditors’ claims.

(3)

Nothing in this section shall be construed to impair the priority, with respect to the lien property, of mortgages, security agreements, or lease agreements or installment sales agreements on property not otherwise encumbered entered into by a provider with an issuer of bonds or notes, which has financed a facility, and which bonds are secured by a resolution, ordinance, or indenture of trust, if such mortgages or agreements were duly recorded at least 4 months prior to the institution of receivership or liquidation proceedings.

Source: Section 651.071 — Contracts as preferred claims on liquidation or receivership, https://www.­flsenate.­gov/Laws/Statutes/2024/0651.­071 (accessed Aug. 7, 2025).

651.011
Definitions 651.012
Exempted facility 651.13
Civil action 651.013
Chapter exclusive 651.014
Insurance business not authorized 651.015
Administration 651.018
Administrative supervision 651.019
New financing, additional financing, or refinancing 651.021
Certificate of authority required 651.022
Provisional certificate of authority 651.023
Certificate of authority 651.024
Acquisition 651.026
Annual reports 651.028
Accredited facilities 651.033
Escrow accounts 651.034
Financial and operating requirements for providers 651.035
Minimum liquid reserve requirements 651.043
Approval of change in management 651.051
Maintenance of assets and records in state 651.055
Continuing care contracts 651.057
Continuing care at-home contracts 651.061
Dismissal or discharge of resident 651.065
Waiver of statutory protection 651.071
Contracts as preferred claims on liquidation or receivership 651.081
Residents’ council 651.083
Residents’ rights 651.085
Quarterly meetings between residents and the governing body of the provider 651.091
Availability, distribution, and posting of reports and records 651.095
Advertisements 651.105
Examination 651.106
Grounds for discretionary refusal, suspension, or revocation of certificate of authority 651.107
Duration of suspension 651.108
Administrative fines 651.111
Requests for inspections 651.114
Delinquency proceedings 651.116
Delinquency proceedings 651.117
Order of liquidation 651.118
Agency for Health Care Administration 651.119
Assistance to persons affected by closure due to liquidation or pending liquidation 651.121
Continuing Care Advisory Council 651.123
Alternative dispute resolution 651.125
Criminal penalties 651.131
Actions under prior law 651.132
Amendment or renewal of existing contracts 651.134
Investigatory records 651.0215
Consolidated application for a provisional certificate of authority and a certificate of authority 651.0235
Validity of provisional certificates of authority and certificates of authority 651.0245
Application for the simultaneous acquisition of a facility and issuance of a certificate of authority 651.0246
Expansions 651.0261
Quarterly and monthly statements 651.1065
Soliciting or accepting new continuing care contracts by impaired or insolvent facilities or providers 651.1081
Remedies available in cases of unlawful sale 651.1141
Immediate final orders 651.1151
Administrative, vendor, and management contracts

Current through Fall 2025

§ 651.071. Contracts as preferred claims on liquidation or receivership's source at flsenate​.gov