South Carolina General Assembly
107th Session, 1987-1988

Bill 3032

                    Current Status

Bill Number:               3032
Ratification Number:       467
Act Number                 428
Introducing Body:          House
Subject:                   Limitation on requirement of casualty
                           insurance by mortgagee
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A428, R467, H3032)

AN ACT TO AMEND ARTICLE I, CHAPTER 3, TITLE 29, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MORTGAGES BY ADDING SECTION 29-3-70 SO AS TO PROVIDE THAT A MORTGAGEE, WHEN MAKING A MORTGAGE LOAN MAY NOT REQUIRE, AS A CONDITION OR TERM OF THE MORTGAGE, THAT THE MORTGAGOR PURCHASE CASUALTY INSURANCE ON PROPERTY WHICH IS THE SUBJECT OF THE MORTGAGE IN AN AMOUNT IN EXCESS OF THE REPLACEMENT COST OF THE BUILDINGS OR APPURTENANCES ON THE MORTGAGED PREMISES.

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

Limitation on requirement of casualty insurance by mortgagee

SECTION 1. Article I, Chapter 3, Title 29 of the 1976 Code is amended by adding:

"Section 29-3-70. A bank, savings and loan association, financial institution, mortgage company, or any public or private mortgagee doing business in this State, when making a mortgage loan, may not require, as a condition or term of the mortgage, that the mortgagor purchase casualty insurance on property which is the subject of the mortgage in an amount in excess of the replacement cost of the buildings or appurtenances on the mortgaged premises." Time effective

SECTION 2. This act takes effect upon approval by the Governor.