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Current Status Bill Number:View additional legislative information at the LPITS web site.3581 Ratification Number:83 Act Number:42 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19990223 Primary Sponsor:Cato All Sponsors:Cato, Cobb-Hunter, Gamble, Jennings and Scott Drafted Document Number:l:\council\bills\dka\3179mm99.doc Date Bill Passed both Bodies:19990525 Date of Last Amendment:19990519 Governor's Action:S Date of Governor's Action:19990601 Subject:Financial Institutions Board, activity permitted by; Banks, Consumer Affairs, sale of securities, contracts History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 19990618 Act No. A42 ------ 19990601 Signed by Governor ------ 19990526 Ratified R83 House 19990525 Concurred in Senate amendment, enrolled for ratification Senate 19990519 Amended, read third time, returned to House with amendment Senate 19990513 Read second time, notice of general amendments Senate 19990511 Recalled from Committee, 02 SBI placed on the Calendar Senate 19990421 Introduced, read first time, 02 SBI referred to Committee House 19990420 Read third time, sent to Senate House 19990415 Read second time House 19990414 Committee report: Favorable 26 HLCI House 19990223 Introduced, read first time, 26 HLCI referred to Committee Versions of This Bill Revised on April 14, 1999 - Word format Revised on May 11, 1999 - Word format Revised on May 19, 1999 - Word format
(A42, R83, H3581)
AN ACT TO AMEND SECTION 34-1-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AUTHORITY FOR CERTAIN STATE FINANCIAL INSTITUTIONS TO ENGAGE IN SPECIFIED FINANCIAL ACTIVITY, SO AS TO PROVIDE THAT THE STATE BOARD OF FINANCIAL INSTITUTIONS MAY PERMIT A FINANCIAL ACTIVITY BY ISSUING AN OPERATIONAL INSTRUCTION IN ADDITION TO GRANTING AUTHORITY BY REGULATION, AND TO MAKE TECHNICAL CHANGES; BY ADDING SECTION 36-8-113 SO AS TO PROVIDE FOR THE ENFORCEABILITY OF AN UNWRITTEN CONTRACT FOR THE SALE OF SECURITIES; TO AMEND SECTION 36-1-206, RELATING TO THE STATUTE OF FRAUDS FOR ENFORCEMENT OF CONTRACTS FOR THE SALE OF CERTAIN PERSONAL PROPERTY, SO AS TO CONFORM THE CROSS REFERENCE TO THE PROVISION FOR ENFORCEMENT OF AN UNWRITTEN CONTRACT FOR THE SALE OF SECURITIES; AND TO REPEAL SECTION 36-8-319 RELATING TO THE STATUTE OF FRAUDS FOR A CONTRACT FOR THE SALE OF SECURITIES.
Be it enacted by the General Assembly of the State of South Carolina:
Authority for financial institutions to engage in activity
SECTION 1. Section 34-1-110 of the 1976 Code is amended to read:
"Section 34-1-110. (A) Notwithstanding any other provision of law and in addition to all of the powers granted under Chapters 1 through 31 of Title 34 and Chapter 3 of Title 37, the State Board of Financial Institutions, by regulation or by issuing operational instructions, may permit:
(1) state-chartered banks to engage in any activity authorized for national banks by federal law or regulation of the Comptroller of the Currency or for state-chartered savings and loan associations by this title or regulation or operational instruction of the State Board of Financial Institutions;
(2) state-chartered savings and loan associations to engage in any activity authorized for federally-chartered savings and loan associations by federal law or regulation of the Office of Thrift Supervision or for state-chartered banks by this title or regulation or operational instruction of the State Board of Financial Institutions;
(3) cooperative credit unions to engage in any activity authorized for federally-chartered credit unions by federal law or by regulation of the National Credit Union Administration; and
(4) consumer finance companies operating pursuant to a license to make supervised loans as provided in Part 5, Chapter 3, Title 37, to engage in any lending activity authorized for supervised financial organizations by law or by regulation of an agency given supervisory authority over those institutions, except where otherwise restricted by statute.
(B) For the purpose of this section, the term 'activity' includes the terms and conditions under which the activity may be exercised, as well as the authority to make a particular type of loan or investment or otherwise to engage in an approved activity."
Enforceability of unwritten contract for sale
SECTION 2. The 1976 Code is amended by adding:
"Section 36-8-113. A contract or modification of a contract for the sale or purchase of a security is enforceable whether or not there is a writing signed or record authenticated by a party against whom enforcement is sought, even if the contract or modification is not capable of performance within one year of its making."
Statute of frauds for some personal property
SECTION 3. Section 36-1-206 of the 1976 Code is amended to read:
"Section 36-1-206. (1) Except in cases described in subsection (2) of this section a contract for the sale of personal property is not enforceable by way of action or defense beyond five thousand dollars in amount or value of remedy unless there is some writing which indicates that a contract for sale has been made between the parties at a defined or stated price, reasonably identifies the subject matter, and is signed by the party against whom enforcement is sought or by his authorized agent.
(2) Subsection (1) of this section does not apply to contract for the sale of goods (Section 36-1-201) nor of securities (Section 36-8-113) nor to security agreements (Section 36-9-203)."
Repeal
SECTION 4. Section 36-8-319 of the 1976 Code is repealed.
Time effective
SECTION 5. This act takes effect upon approval by the Governor.
Ratified the 26th day of May, 1999.
Approved the 1st day of June, 1999.
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