South Carolina General Assembly
104th Session, 1981-1982

Bill 2164

                    Current Status

Bill Number:               2164
Ratification Number:       16
Act Number                 6
Introducing Body:          House
Subject:                   Interest rates suspended until June
                           30,1985
View additional legislative information at the LPITS web site.

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A6, R16, H2164)

AN ACT TO AMEND ACT 7 OF 1979, IS AMENDED, RELATING TO REMOVAL OF INTEREST RATE LIMITATIONS ON REAL ESTATE MORTGAGE LOANS AND THE SUSPENSION OF THE EXCLUSION OF LOANS PRIMARILY SECURED BY A FIRST LIEN WHICH IS A PURCHASE MONEY SECURITY INTEREST IN LAND FROM THE DEFINITION OF "CONSUMER LOAN", SO AS TO EXTEND THE TIME THROUGH JUNE 30,1985; TO AMEND SUCH ACT AND SECTION 37-1-202, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO INCREASE THE MAXIMUM AMOUNT OF LOANS PERMITTED TO BE MADE BY INDIVIDUALS WITHOUT RATE LIMITATIONS FROM FIVE TO TEN IN ONE CALENDAR YEAR; AND TO PERMIT THE STATE TO OVERRIDE THE FEDERAL PREEMPTION OF THE STATE MORTGAGE USURY LAWS AS RELATED TO ACT 7 OF 1979.

Be it enacted by the General Assembly of the State of South Carolina

Interest rates suspended until June 30,1985

SECTION 1. Section l of Act 7 of 1979 is amended to read:

"Section 1. Except as provided in Sections 2, 3 and 4 of this act, the parties to a loan which is secured by a first mortgage on real estate may, until and including June 30, 1985, contract for any rate of interest."

Person making not more than ten consumer loans in a year deemed supervised financial organization

SECTION l A. Section 2 of Act 7 of 1979 is amended to read:

"Section 2. A consumer loan not excluded by Section 37-1-202 of the 1976 Code shall be subject to all provisions of the Consumer Protection Code, provided that for purposes of this section, a person other than an organization who makes not more than ten consumer loans in a year shall be deemed to be a supervised financial organization."

Certain first mortgage loans excluded

SECTION 1B. Item (11) of Section 37-1-202 of the 1976 Code, as amended by Act 19 of 1979, is further amended to read:

"(11) First mortgage loans made to enable the debtor to build or purchase a residence, when made by a lender whose loans are subject to supervision by an agency of this State or of the United States or made by a Federal Housing Administration approved mortgagee or made by a lender who is a person other than an organization who makes not more than ten consumer loans in a single calendar year."

Section suspended until June 30, 1985

SECTION 2. Section 6 of Act 7 of 1979 is amended to read:

"Section 6. Subsection (2) of Section 37-3-104 of the 1976 Code and the reference thereto in subsection (1) of that section are suspended until June 30, 1985."

Legislative intent

SECTION 3. The State of South Carolina does not want the provisions of subsection (a)(l) of Section 501 of Public Law 96-221, as amended, The Depository Institution Deregulation in Monetary Control Act of 1980, to apply with respect to loans, mortgages, credit sales, and advances made in South Carolina under the provisions of Act 7 of 1979. This provision is enacted under the authority and intended to meet the requirements of subsection (b)(2) of Section 501 of Public Law 96-221 permitting the State to override federal preemption of the state's mortgage usury laws as related to the provisions of Act 7 of 1979.

Time effective

SECTION 4. This act shall take effect upon approval by the Governor.