Current Status Introducing Body:House Bill Number:3452 Primary Sponsor:R. Young Committee Number:25 Type of Legislation:GB Subject:Mortgage Residing Body:House Current Committee:Judiciary Computer Document Number:CYY/15127SD.93 Introduced Date:19930210 Last History Body:House Last History Date:19930210 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:R. Young Gonzales Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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3452 House 19930210 Introduced, read first time, 25
referred to Committee
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TO AMEND SECTION 29-3-325, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT THAT A FINANCIAL INSTITUTION WHICH IS A MORTGAGEE OR ASSIGNEE OF A MORTGAGE MUST SATISFY THE MORTGAGE WITHIN NINETY DAYS UNDER CERTAIN CONDITIONS OR INCUR A PENALTY, SO AS TO PROVIDE THAT CONTRARY WRITTEN INSTRUCTIONS OF THE MORTGAGOR OR CLOSING AGENT MUST ALSO BE COMPLIED WITH BY THE FINANCIAL INSTITUTION WITHIN THIS NINETY-DAY PERIOD.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 29-3-325 of the 1976 Code, added by Act 452 of 1992, is amended to read:
"Section 29-3-325. When no written instructions to the contrary are given by the mortgagor or a closing agent, acting on behalf of the mortgagor, to the mortgagee or to an assignee of the mortgage, and when the mortgagee or assignee of the mortgage is a financial institution, the mortgagee or assignee is responsible for recording the satisfaction or cancellation of the mortgage it holds. The financial institution may charge a reasonable fee not to exceed twenty-five dollars to cover the cost of recording the satisfaction or cancellation.
If the financial institution fails to record the satisfaction or cancellation or comply with contrary written instructions of the mortgagor or closing agent within ninety days of receipt of the full amount necessary to satisfy the debt or obligation secured by the mortgage, it must pay to the mortgagor upon demand a penalty in the amount of one hundred dollars or in the alternative the mortgagor is entitled to the remedies provided by Sections 29-3-310 and 29-3-320 if these sections apply. However, a violation of this section is not considered to be a violation of Sections 29-3-310 and 29-3-320. Failure to pay this one hundred dollar penalty within ten days after demand subjects the financial institution to additional penalties of one hundred dollars for each ten days or portion thereof the penalty remains unpaid after receipt of demand.
The provisions of this section do not apply to `open-end credit' plans as defined by federal law, or to mortgages containing future advance clauses even though they secure closed-end transactions."
SECTION 2. This act takes effect upon approval by the Governor.