Bill 3400

                    Current Status

Bill Number:               3400
Ratification Number:       250
Act Number                 164
Introducing Body:          House
Subject:                   Relating to the additional charges a
                           creditor or lender may contract

(A164, R250, H3400)

AN ACT TO AMEND SECTIONS 37-2-202 AND 37-3-202, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ADDITIONAL CHARGES A CREDITOR OR LENDER MAY CONTRACT FOR IN CONSUMER CREDIT SALES AND CONSUMER LOANS UNDER THE SOUTH CAROLINA CONSUMER PROTECTION CODE, SO AS TO RAISE THE MAXIMUM ALLOWED ASSUMPTION FEE FROM THE LESSER OF TWO HUNDRED FIFTY DOLLARS OR ONE PERCENT OF THE LOAN BALANCE OR UNPAID DEBT BALANCE TO THE LESSER OF FOUR HUNDRED DOLLARS OR ONE PERCENT OF THE LOAN BALANCE OR UNPAID DEBT BALANCE; AND TO AMEND SECTION 37-10-102, RELATING TO LOANS FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES SECURED BY A LIEN ON REAL ESTATE UNDER THE SOUTH CAROLINA CONSUMER PROTECTION CODE, SO AS TO RAISE THE MAXIMUM ALLOWED ASSUMPTION FEE FROM THE LESSER OF TWO HUNDRED FIFTY DOLLARS OR ONE PERCENT OF THE UNPAID LOAN BALANCE TO THE LESSER OF FOUR HUNDRED DOLLARS OR ONE PERCENT OF THE UNPAID LOAN BALANCE.

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

Fee increased

SECTION 1. Section 37-2-202(3) of the 1976 Code is amended to read:

"(3) With respect to an assumption of an existing obligation, the seller may, in addition to the other authorized charges, charge an assumption fee not exceeding the lesser of four hundred dollars or one percent of the unpaid balance of the debt at the time the assumption transaction is consummated whenever the primary collateral securing the credit is real estate or a residential manufactured home and not exceeding the lesser of fifty dollars or one percent of the unpaid balance of the debt at the time the assumption transaction is consummated whenever the primary collateral securing the credit is personal property other than a residential manufactured home."

Fee increased

SECTION 2. Section 37-3-202(3) of the 1976 Code is amended to read:

"(3) With respect to an assumption of an existing obligation, the seller may, in addition to the other authorized charges, charge an assumption fee not exceeding the lesser of four hundred dollars or one percent of the unpaid balance of the debt at the time the assumption transaction is consummated whenever the primary collateral securing the credit is real estate or a residential manufactured home and not exceeding the lesser of fifty dollars or one percent of the unpaid balance of the debt at the time the assumption transaction is consummated whenever the primary collateral securing the credit is personal property other than a residential manufactured home."

Fee increased

SECTION 3. Section 37-10-102(b)(iii) of the 1976 Code is amended to read:

"(iii) A nonrefundable assumption fee in an amount not exceeding the lesser of four hundred dollars or one percent of the unpaid balance of the loan at the time the assumption transaction is consummated."

Time effective

SECTION 4. This act takes effect upon approval by the Governor.