BEGONIA CORPORATION, A FLORIDA CORPORATION, AND PHILIP SCHWAB, APPELLANTS,
v.
NAM FINANCIAL CORPORATION, APPELLEE

Fla. 4th DCA | 1998-02-04
No. 97-0132
GLICKSTEIN, DELL and POLEN, JJ., concur.
710 So. 2d 577 Florida District Court of Appeal, Fourth District (1998) Positive Treatment
Cited by 2 cases

Opinion of the Court
PER CURIAM.

PER CURIAM.

We affirm the final judgment of foreclosure except for the inclusion of the $138,031.45 prepayment penalty, which we reverse and remand. The general rule is that, unless otherwise specifically provided for in the note, the lender cannot upon the lender’s acceleration also collect the prepayment penalty. Florida Nat’l Bank of Miami v. Bankatlantic, 589 So. 2d 255, 258 (Fla.1991). The court in Florida National created a limited exception to the general rule applicable under special circumstances including an intentional default by the borrower. Id. at 259. Here, neither the pleadings nor proof establish the applicability of the exception.

GLICKSTEIN, DELL and POLEN, JJ., concur.


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  • Begonia Corp. v. NAM Fin. Corp., 724 So. 2d 714 (Fla. 4th DCA 1999)
    …of the court relating to a sale under a final judgment of foreclosure of property in which they have an interest. They previously appealed the foreclosure judgment, and we affirmed it except for a prepayment penalty. Begonia Corp. v. Nam Fin. Corp., 710 So. 2d 577 (Fla. 4th DCA 1998), reh’g denied (Mar. 30, 1998). After our remand there were further proceedings to amend the judgment and have a sale. One sale was set aside and a new one scheduled. A second sale failed because the successful bidder defaulted o…
  • Feinstein v. NEW Bethel Missionary Baptist, 938 So. 2d 562 (Fla. 3d DCA 2006)
    …431, 431 (Fla. 3d DCA 1996)(holding that pre-payment clause at issue in note and mortgage “does not ‘specifically’ provide for recovery of the penalty after and in addition to the ‘lender’s acceleration’ ”); see also Begonia Corp. v. Nam Fin. Corp., 710 So. 2d 577 (Fla. 4th DCA 1998)(applying the general rule enunciated in Florida Nat’l). As the Superior Court of New Jersey, Appellate Division stated when squarely faced with the issue of enforceability of a provision that specifically calls for a prepayment…

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