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Current Status Bill Number:View additional legislative information at the LPITS web site.3995 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19990427 Primary Sponsor:Tripp All Sponsors:Tripp Drafted Document Number:l:\council\bills\nbd\11351jm99.doc Residing Body:House Current Committee:Labor, Commerce and Industry Committee 26 HLCI Subject:Consumer loans secured by interest in real estate, loan origination fee charges; Consumer Affairs, Banks History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ House 19990427 Introduced, read first time, 26 HLCI referred to Committee Versions of This Bill
TO AMEND SECTION 37-3-202, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOANS UNDER THE CONSUMER PROTECTION CODE, MAXIMUM CHARGES, AND ADDITIONAL CHARGES FOR WHICH A LENDER MAY CONTRACT, SO AS TO PROVIDE THAT, WITH RESPECT TO A CONSUMER LOAN SECURED BY AN INTEREST IN REAL ESTATE, A LOAN ORIGINATION FEE NOT TO EXCEED WHAT IS DEEMED "USUAL AND CUSTOMARY" MAY BE CHARGED, AND PROVIDE FOR RELATED MATTERS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 37-3-202(1) of the 1976 Code, as last amended by Act 142 of 1991, is further amended to read:
"(1) In addition to the loan finance charge permitted by this chapter a lender may contract for and receive the following additional charges in connection with a consumer loan:
(a) official fees and taxes;
(b) charges for insurance as described in subsection (2);
(c) with respect to open-end credit pursuant to a lender credit card issued by a creditor which entitles the cardholder to purchase or lease goods or services from at least one hundred persons not related to the card issuer, under an arrangement pursuant to which the debts resulting from the purchases or leases are payable to the card issuer;:
(i) annual charges, payable in advance, for the privilege of using the credit card; and
(ii) an over-limit charge not to exceed ten dollars if the balance of the account exceeds the credit limit established pursuant to the agreement between the card issuer and the cardholder plus the lesser of ten percent of the credit limit of one hundred dollars. The over-limit charge authorized by this subitem may not be assessed again against the cardholder unless the account balance has been reduced below the credit limit plus the lesser of ten percent of the credit limit or one hundred dollars, and the cardholder's account balance subsequently exceeds the credit limit plus the lesser of ten percent of the credit limit or one hundred dollars; and
(d) with respect to a loan secured by an interest in land, the following 'closing costs', if they are bona fide, reasonable in amount, and not for the purpose of circumvention or evasion of this title:
(i) fees or premiums for title examination, abstract of title, title insurance, surveys, or similar purposes;
(ii) fees for preparation of a deed, settlement statement, or other documents, if not paid to the creditor or a person related to the creditor;
(iii) escrows for future payments of taxes, including assessments for improvements, insurance, and water, sewer, and land rents;
(iv) fees for notarizing deeds and other documents, if not paid to the creditor or a person related to the creditor; and
(v) fees for appraising the real estate that is collateral for the loan, if not paid to the creditor or a person related to the creditor;
(e) with respect to a consumer loan secured by an interest in real estate, a loan origination fee not to exceed what is deemed usual and customary may be charged. On an open end loan secured by an interest in real estate, the fee may be computed on the line of credit. The loan origination fee is fully earned on the date of the credit transaction, is not subject to refund or rebate upon prepayment in full, and may be paid in cash at the time of the credit transaction or may be deducted from the proceeds and included in the original principal balance;
(e)(f) charges for other benefits, including insurance, conferred on the debtor, if the benefits are of value to him and if the charges are reasonable in relation to the benefits, are of a type which is not for credit, and are authorized as permissible additional charges by rule adopted by the administrator;
(f)(g) fees and charges paid to persons registered as mortgage loan brokers pursuant to Chapter 58 of Title 40."
SECTION 2. This act takes effect upon approval by the Governor.
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