Bill 4543

                    Current Status

Bill Number:                    4543
Ratification Number:            332
Act Number:                     295
Type of Legislation:            General Bill GB
Introducing Body:               House
Introduced Date:                19980128
Primary Sponsor:                Gamble 
All Sponsors:                   Gamble 
Drafted Document Number:        dka\4738mm.98
Date Bill Passed both Bodies:   19980331
Governor's Action:              U Became law without signature of
                                Governor
Date of Governor's Action:      19980421
Subject:                        Bank loans, amounts conformed by
                                setting maximums as percentages of
                                bank's unimpaired capital; Banks,
                                Savings and Loans

Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

------  19980428  Act No. A295
------  19980421  Unsigned, became law without
                  signature of Governor
------  19980414  Ratified R332
Senate  19980331  Read third time, enrolled for
                  ratification
Senate  19980325  Read second time, notice of
                  general amendments
Senate  19980324  Polled out of Committee:                 02 SBI
                  Without report
Senate  19980226  Introduced, read first time,             02 SBI
                  referred to Committee
House   19980225  Read third time, sent to Senate
House   19980224  Read second time
House   19980218  Committee report: Favorable              26 HLCI
House   19980128  Introduced, read first time,             26 HLCI
                  referred to Committee

(A295, R332, H4543)

AN ACT TO AMEND SECTION 34-13-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MAXIMUM AMOUNTS OF BANK LOANS, SO AS TO CONFORM THE AMOUNTS TO FEDERAL LAW BY SETTING THE MAXIMUMS AS PERCENTAGES OF THE BANK'S UNIMPAIRED CAPITAL AND BY DEFINING UNIMPAIRED CAPITAL.

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

Loans limited to percentage of unimpaired capital

SECTION 1. Section 34-13-50 of the 1976 Code is amended to read:

"Section 34-13-50. (A) The total liabilities, direct and indirect, of any one borrower to a bank, including in the liabilities of a company or firm the liabilities of its several members, may never exceed ten percent of the bank's unimpaired capital, except by two-thirds vote of the directors of the bank, in which case liabilities other than those of officers and directors as described in Section 34-13-80 may be extended to fifteen percent of the bank's unimpaired capital. However, liabilities may be extended by an additional amount not to exceed thirty-five percent of the unimpaired capital of the bank when the additional loans are secured by direct obligations of the United States Government or direct obligations of this State. The discount of bills of exchange drawn in good faith against existing values and the discount of commercial or business paper are not considered money borrowed.

(B) For purposes of this section, 'unimpaired capital' means the total of the amount of:

(1) unimpaired common stock;

(2) perpetual preferred stock;

(3) surplus;

(4) undivided profits, excluding disallowed intangibles;

(5) reserve for contingencies and other capital reserves, excluding accrued dividends on perpetual and limited life preferred stock;

(6) mandatory convertible debt;

(7) allowance for loan losses; and

(8) capital debentures or notes, convertible or otherwise, having an average original maturity of at least seven years and having been designated specifically as part of the bank's unimpaired capital by resolution duly adopted by the board of directors of the bank."

Time effective

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

Became law without the signature of the Governor -- 04/21/98.