South Carolina General Assembly
104th Session, 1981-1982

Bill 3357


                    Current Status

Bill Number:               3357
Ratification Number:       518
Act Number                 416
Introducing Body:          House
Subject:                   Relating to definitions with regard to
                           vacation time sharing
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A416, R518, H3357)

AN ACT TO AMEND SECTION 27-32-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS WITH REGARD TO VACATION TIME SHARING, SO AS TO PROVIDE THAT "FACE VALUE" SHALL INCLUDE ALL INTEREST TO BE COLLECTED AND TO ADD THE DEFINITION OF "REAL ESTATE BROKERS' TRUST ACCOUNT"; TO AMEND SECTION 27-32-60, AS AMENDED, RELATING TO THE REQUIREMENT OF PLACING IN AN ESCROW ACCOUNT FUNDS RECEIVED FROM THE PURCHASERS OF VACATION TIME SHARING PLANS, SO AS TO REQUIRE SUCH FUNDS BE PLACED IN A REAL ESTATE BROKER'S TRUST ACCOUNT; AND TO AMEND SECTIONS 27-32-90 AND 27-32-95, BOTH AS AMENDED, RELATING TO THE REQUIREMENT OF PLACING IN ESCROW CASH ON RECEIVABLES RECEIVED FROM THE PURCHASERS OF VACATION TIME SHARING LEASE AND OWNERSHIP PLANS, SO AS TO REQUIRE RECEIVABLES TO BE SET AT FACE VALUE, TO REQUIRE THE INCOME FROM RECEIVABLES TO BE ADEQUATE TO PAY IN FULL AND SATISFY ALL LIENS AND ENCUMBRANCES SECURED BY THE TIME SHARING FACILITIES AND ACCOMMODATIONS AND TO REQUIRE AN ESCROW AGENT TO PROVIDE THE SELLER AND LENDER A MONTHLY STATEMENT OF THE ACCOUNT AND REQUIRE THE SELLER TO IMMEDIATELY PAY TO THE ESCROW AGENT ANY AMOUNT NECESSARY TO ASSURE PAYMENTS OF ALL LIENS, ENCUMBRANCES OR RECURRING DEBTS.

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

Definition

Section 1. Item (15) of Section 27-32-10 of the 1976 Code is amended to read:

"(15) 'Face value' means the principal amount of money represented by any receivable as defined in item (14), together with the amount of all interest to be collected thereon."

Definition

Section 2. Section 27-32-10 of the 1976 Code, as last amended by Act 106 of 1981, is further amended by adding a new item to be appropriately numbered to read:

"( ) 'Real estate broker's trust account' means a demand account in a bank or savings institution in this State held by a duly licensed South Carolina real estate broker."

Real estate broker's trust account

Section 3. Item (3) of Section 27-32-60 of the 1976 Code, as last amended by Act 179 of 1979, is further amended to read:

"(3) Fail to place in the real estate broker's trust account one hundred percent of the funds received from the purchasers of such plans, where the seller of the time sharing plan transfers an interest therein to the purchaser, which trust account shall provide that:

(a) Its purpose is to protect the buyer's right to refund during the four-day right to cancellation as provided in Section 27-32-40 or 27-32-50.

(b) Funds may be withdrawn by the seller upon transfer to the buyer and only after expiration of the four-day cancellation period as provided in Section 27-32-40 or 27-32-50."

Deposit with escrow agent

Section 4. Item (1) of Section 27-32-90 of the 1976 Code, as last amended by Act 179 of 1979, is further amended to read:

"(1) Deposit with an escrow agent fifty percent of the cash or receivables received from purchasers of such plans, less applicable local, state and federal sales taxes; provided, that in the event receivables are placed in escrow such receivables shall be set at face value and shall be equal to one hundred ten percent of the fifty percent required in this item."

Further

Section 5. Item (1) of Section 27-32-95 of the 1976 Code, as last amended by Act 179 of 1979, is further amended to read:

"(1) Deposit with an escrow agent fifty percent of the cash or receivables received from the purchasers of such plans, less applicable local, state or federal sales taxes; provided, however, that in the event receivables are placed in escrow, such receivables shall be set at face value and shall be equal to one hundred ten percent of the fifty percent required in this item."

Assigned receivables to escrow agent

Section 6. Subitem (a) of item (2) of Section 27-32-90 of the 1976 Code, as last amended by Act 179 of 1979, is further amended to read:

"(a) Assign to an escrow agent receivables, the income from which shall be adequate to pay in full and satisfy all liens and encumbrances secured by the time sharing facilities or accommodations."

Further

Section 7. Subitem (a) of item (2) of Section 27-32-95 of the 1976 Code, as last amended by Act 179 of 1979, is further amended to read:

"(a) Assign to an escrow agent receivables, the income from which shall be adequate to pay in full and satisfy all liens and encumbrances secured by the time sharing facilities and accommodations."

Escrow to provide monthly statement

Section 8. Sub-subitem (i) of subitem (a) of item (2) of Section 27-32-90 of the 1976 Code, as last amended by Act 179 of 1979, is further amended to read:

"(i) The escrow agent shall provide to the seller and lender a monthly statement of the account and the seller shall immediately pay to the escrow agent any amount necessary to assure payment of all liens or encumbrances referred to in this item."

Further

Section 9. Sub-subitem (i) of subitem (a) of item (2) of Section 27-32-95 of the 1976 Code, as last amended by Act 179 of 1979, is further amended to read:

"(i) The escrow agent shall provide to the lender a monthly statement of the account and the seller shall immediately pay to the escrow agent an amount necessary to assure payment of all recurring debts as referred to in this item."

Time effective

Section 10. This act shall take effect upon the approval by the Governor.