Pink Floyd Songs and Creditors Rights – Money
Payment of the debt tax and inclusion of the maximum principal owed
Everyone wants a piece of the “Money,” especially when a loan is involved. On security instruments, such as deeds of trust, assignments of rent and leases, and UCC statements, Florida requires a mention of the “maximum principle indebtedness” in addition to the payment of an indebtedness tax based on the amount of principal owed to the debtor. A creditor must only pay the tax once on the principal amount borrowed. Still, if mixed collateral—such as real estate and personal property—is used to secure the loan, all security documents still need to include the “maximum principal indebtedness” statement. Additionally, all security documents created after the tax has been paid should include a reference to the security document on which the tax was paid. Finally, creditors should be aware that they are responsible for paying any further increases in the principle amount of the loan if the loan amount is increased at any point throughout its term.
We would like to acknowledge Ron Steen at Thompson Burton in Tennessee as the original author of this tongue-in-cheek look at Pink Floyd and the Debt Collection Legal Industry