Bill 452

                    Current Status

Bill Number:               452
Ratification Number:       267
Act Number:                261
Introducing Body:          Senate
Subject:                   Relating to the South Carolina Consumer
                           Protection Code-credit sales

(A261, R267, S452)

AN ACT TO AMEND SECTIONS 37-1-108 AND 37-3-201, BOTH AS AMENDED, AND SECTIONS 37-1-107, 37-1-109, 37-2-102, 37-6-505, AND 37-10-10l, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA CONSUMER PROTECTION CODE-CREDIT SALES, SO AS TO MAKE TECHNICAL CORRECTIONS IN THESE SECTIONS.

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

Waiver; agreement to forego rights; settlement claims

SECTION 1. Subsection (1) of Section 37-1-107 of the 1976 Code is amended to read:

"(1) Except as otherwise provided in this title, a buyer, lessee, or debtor may not waive or agree to forego rights or benefits under this title."

Effect of title on powers of organization

SECTION 2. Subsection (4) of Section 37-1-108 of the 1976 Code, as last amended by Section 3 of Act 686 of 1976, is further amended to read:

"(4) Except as provided in subsections (1) and (2), this title does not displace:

(a) Limitations on powers of supervised financial organizations (subsection (27) of Section 37-1-301) with respect to the amount of a loan to a single borrower, the ratio of a loan to the value of collateral, the duration of a loan secured by an interest in land, or other similar restrictions designed to protect deposits, or

(b) Limitations on powers an organization is authorized to exercise under the laws of this State or the United States."

Change of dollar amount used in the Consumer Protection Code

SECTION 3. Subsection (6) of Section 37-1-109 of the 1976 Code, added by Section 3 of Act 385 of 1982, is amended to read:

"(6) The dollar amounts in the following sections of this title will be subject to change in accordance with this section: 37-2-104(1)(e), 37-2-106(1)(b), 37-2-203(1), 37-2-407(1), 37-3-104(1)(d), 37-3-203(1), 37-3-510, 37-3-511, 37-3-514, 37-5-103(2), (3) and (4)."

Scope

SECTION 4. Section 37-2-102 of the 1976 Code is amended to read:

"Section 37-2-102. This chapter applies to consumer credit sales, including home solicitation sales, and consumer leases; in addition, Part 6 applies to other than consumer credit sales."

Loan finance charge for consumer loans other than supervised loans

SECTION 5. Subsection (2) of Section 37-3-201 of the 1976 Code, as last amended by Section 30 of Act 385 of 1982, is further amended to read:

"(2) With respect to a consumer loan, including a loan pursuant to open-end credit, a supervised lender may contract for and receive a loan finance charge, calculated according to the actuarial method, not exceeding the greater of either of the following:

(a) any rate filed and posted pursuant to Section 37-3-305; or

(b) eighteen percent per year on the unpaid balances of principal."

Compensation and expenses of commission members

SECTION 6. Section 37-6-505 of the 1976 Code is amended to read:

"Section 37-6-505. Each member of the Commission other than ex officio shall receive such compensation and official expenses as provided by law for members of state boards and commissions."

Scope

SECTION 7. Section 37-10-101 of the 1976 Code, added by Section 56 of Act 385 of 1982, is amended to read:

"Section 37-10-101. Except as otherwise provided in other chapters of this title, this chapter applies to designated loan transactions other than consumer loan transactions (Sections 37-3-104 and 37-3-105)."

Time effective

SECTION 8. This act shall take effect upon approval by the Governor.