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Bill Number: 2172 Ratification Number: 59 Act Number 30 Introducing Body: House Subject: State Board of Financial Institutions may promulgate regulations
(A30, R59, H2172)
AN ACT TO AMEND ACT 379 OF 1980, RELATING TO THE AUTHORITY OF THE STATE BOARD OF FINANCIAL INSTITUTIONS TO PROMULGATE REGULATIONS PERMITTING STATE CHARTERED SAVINGS AND LOAN ASSOCIATIONS TO OFFER VARIABLE RATES ON FIRST MORTGAGE REAL ESTATE LOANS, SO AS TO ALLOW STATE CHARTERED BANKS TO OFFER VARIABLE RATES OF INTEREST ON SUCH LOANS, AND TO AMEND ACT 7 OF 1979, AS AMENDED, RELATING TO INTEREST RATE LIMITATIONS ON CERTAIN FIRST MORTGAGE LOANS, SO AS TO ALLOW STATE CHARTERED BANKS TO OFFER SUCH LOANS ON PROMULGATION AND APPROVAL OF REGULATIONS AUTHORIZING SAME BY THE STATE BOARD OF FINANCIAL INSTITUTIONS AND TO ALLOW FEDERAL HOUSING ADMINISTRATION APPROVED MORTGAGEES TO OFFER SUCH LOANS IN ACCORDANCE WITH AUTHORIZATION GRANTED FEDERALLY CHARTERED BANKS.
Be it enacted by the General Assembly of the State of South Carolina:
Board may promulgate regulations
Section 1. Section 1 of Act 379 of 1980 is amended to read:
"Section 1. Notwithstanding the provisions of Act 7 of 1979 and Section 34-31-90 of the 1976 Code, the State Board of Financial Institutions may promulgate regulations permitting state chartered savings and loan associations and state chartered banks to offer variable rate first mortgage real estate loans; provided, that this authority in state chartered savings and loans shall extend only to the identical authorization granted to federally chartered savings and loan associations by regulation of the Federal Home Loan Bank Board and that this authority for state chartered banks shall extend only to the identical authorization granted to federally chartered banks by regulation of the Comptroller of the Currency."
Conditions of loan
Section 2. Section 3 of Act 7 1979, as last amended by Act 379 of 1980, is further amended to read:
"Section 3. With respect to a loan of one hundred thousand dollars or less, this act shall not apply unless the agreement provides for a fixed interest rate and the right to prepay the debt in full at any time without penalty; provided, that state chartered banks and savings and loan associations shall be permitted to offer variable rate first mortgage real estate loans upon promulgation and approval regulations authorizing same by the State Board of Financial Institutions as permitted by law; provided, further, that notwithstanding Section 34-31-90, Code of Laws of South Carolina, 1976, Federal Housing Administration Approved Mortgages shall be permitted to offer variable rate first mortgage real estate loans in accordance with identical authorization granted to federally chartered banks by regulation of the Comptroller of Currency."
Section 3. This act shall take effect upon approval by the Governor.