Current Status Introducing Body:House Bill Number:3400 Ratification Number:126 Act Number:66 Primary Sponsor:Harwell Type of Legislation:GB Subject:Rents, certain collateral assignments Date Bill Passed both Bodies:19930420 Computer Document Number:CYY/15099SD.93 Governor's Action:S Date of Governor's Action:19930517 Introduced Date:19930204 Last History Body:------ Last History Date:19930517 Last History Type:Act No. 66 Scope of Legislation:Statewide All Sponsors:Harwell Rudnick Elliott Jennings McKay Kirsh Boan Hodges J. Harris Spearman Gonzales Hallman Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
---- ------ ------------ ------------------------------ --- ------------
3400 ------ 19930517 Act No. 66
3400 ------ 19930517 Signed by Governor
3400 ------ 19930511 Ratified R 126
3400 Senate 19930420 Read third time, enrolled for
ratification
3400 Senate 19930415 Read second time, notice of
general amendments
3400 Senate 19930414 Recalled from Committee, 02
placed on Calendar
3400 Senate 19930310 Introduced, read first time, 02
referred to Committee
3400 House 19930309 Read third time, sent to
Senate
3400 House 19930308 Read second time
3400 House 19930303 Committee Report: Favorable 26
3400 House 19930204 Introduced, read first time, 26
referred to Committee
View additional legislative information at the LPITS web site.
(A66, R126, H3400)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 29-3-100 SO AS TO PROVIDE FOR THE MANNER IN WHICH CERTAIN ASSIGNMENTS OR COLLATERAL ASSIGNMENTS OF RENTS, ISSUES, OR PROFITS ARE VALID, ENFORCEABLE, AND PERFECTED.
Be it enacted by the General Assembly of the State of South Carolina:
Validity of certain assignments of rents, issues, or profits
SECTION 1. The 1976 Code is amended by adding:
"Section 29-3-100. (A) For purposes of this section the following definitions apply:
(1) `Rents, issues, or profits' means all amounts payable by or on behalf of any lessee, tenant, or other person having a possessory interest in real property on account of or pursuant to any written or oral lease or other instrument evidencing a possessory interest in real property or pursuant to any form of tenancy implied by law, and all amounts payable by or on behalf of any licensee or permittee or other person occupying or using real property under license or permission from the owner or person entitled to possession. The term shall not include farm products, timber, the proceeds from the sale of farm products or timber, or the proceeds from the recovery or severance of any mineral deposits located on or under real property.
(2) `Assignment of leases, rents, issues, or profits' means every document assigning, transferring, pledging, mortgaging, or conveying an interest in leases, licenses to real property, and rents, issues, or profits arising from real property, whether set forth in a separate instrument or contained in a mortgage, conditional sales contract, or other deed or instrument of conveyance.
(3) `Collateral assignment' means any assignment of leases, rents, issues, or profits made and delivered in connection with the grant of any mortgage, or the execution of any conditional sales contract or in connection with any extension of credit made against the security of any interest in real property, where the assignor retains the right to collect or to apply the lease revenues, rents, issues, or profits after assignment and prior to default.
(B) The recording of a written document containing an assignment of leases, rents, issues, or profits arising from real property is valid and enforceable from the time of recording to pass the interest granted, pledged assigned, or transferred as against the assignor, and is perfected from the time of recording against subsequent assignees, lien creditors, and purchasers for a valuable consideration from the assignor. (C) Where an assignment of leases, rents, issues, or profits is a collateral assignment, after a default under the mortgage, conditional sales contract, or evidence of indebtedness which the assignment secures, the assignee is thereafter entitled, but not required, to collect and receive any accrued and unpaid or subsequently accruing leave revenues, rents, issues, or profits subject to the assignment, without need for the appointment of a receiver, any act to take possession of the property, or any further demand on the assignor. Unless otherwise agreed, after default the assignee is entitled to notify the tenant or other obligor to make payment to him and is also entitled to take control of any proceeds to which he may be entitled. The assignee must proceed in a commercially reasonable manner and may deduct his reasonable expenses of realization from the collections.
(D) This section shall not exclude other methods of creating, perfecting, collecting, sequestering, or enforcing a security interest in rents, issues, or profits provided by the law of this State."
Time effective
SECTION 2. This act takes effect thirty days after being approved by the Governor, and applies to all assignments of leases, rents, issues, or profits, including collateral assignments, whether recorded prior to or after the effective date of this act.
Approved the 17th day of May, 1993.