H*4543(Rat #0332, Act #0295 of 1998)  General Bill, By Gamble
 A BILL 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".

   01/28/98  House  Introduced and read first time HJ-56
   01/28/98  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-56
   02/18/98  House  Committee report: Favorable Labor, Commerce and
                     Industry HJ-6
   02/24/98  House  Read second time HJ-32
   02/25/98  House  Read third time and sent to Senate HJ-28
   02/26/98  Senate Introduced and read first time SJ-9
   02/26/98  Senate Referred to Committee on Banking and Insurance SJ-9
   03/24/98  Senate Polled out of committee Banking and Insurance SJ-14
   03/24/98  Senate  No report SJ-14
   03/25/98  Senate Read second time SJ-14
   03/25/98  Senate Ordered to third reading with notice of
                     amendments SJ-14
   03/31/98  Senate Read third time and enrolled SJ-17
   04/14/98         Ratified R 332
   04/21/98         Became law without Governor's signature
   04/21/98         Effective date 04/21/98
   05/04/98         Copies available
   05/04/98         Act No. 295

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.