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Bill 436

                    Current Status

Bill Number:                      436
Type of Legislation:              General Bill GB
Introducing Body:                 Senate
Introduced Date:                  19990203
Primary Sponsor:                  Short
All Sponsors:                     Short, Gregory and Jackson
Drafted Document Number:          l:\s-res\lhs\004non-.kad.doc
Residing Body:                    Senate
Current Committee:                Banking and Insurance Committee 02 SBI
Subject:                          Consumer Affairs, Consumer Protection 
                                  Code, official fees and charges redefined for 
                                  purposes of


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
Senate  19990203  Introduced, read first time,           02 SBI
                  referred to Committee


                             Versions of This Bill

TO AMEND SECTION 37-1-301 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE CONSUMER PROTECTION CODE, SO AS TO REDEFINE THE DEFINITION OF OFFICIAL FEES AND CHARGES TO EXCLUDE A PREMIUM PAYABLE FOR INSURANCE IN LIEU OF PERFECTING A SECURITY INTEREST WHEN THE SECURITY INTEREST IS A PURCHASE MONEY SECURITY INTEREST, AS DEFINED IN SECTION 36-9-107, FOR WHICH, IN ACCORDANCE WITH SECTION 36-9-302(1)(D), PERFECTION BY THE FILING OF A FINANCING STATEMENT IS NOT REQUIRED AND TO EXCLUDE A PREMIUM PAYABLE FOR INSURANCE IN LIEU OF PERFECTING A SECURITY INTEREST UPON THE RENEWAL OR REFINANCING OF THE SALE, LEASE, OR LOAN, UNLESS THE RENEWAL OR REFINANCING OCCURS MORE THAN FIVE YEARS AFTER THE INITIAL SALE, LEASE, OR LOAN OR UNLESS THE ACTUAL AMOUNT OF DOLLARS GIVEN TO THE CUSTOMER AT THE TIME OF THE RENEWAL OR REFINANCING IS MORE THAN TEN PERCENT GREATER THAN THE ORIGINAL LOAN AMOUNT.

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

SECTION 1. Section 37-1-301(17) of the 1976 Code is amended to read:

"(17)(a) `Official fees' means -

(a) (i) fees and charges prescribed by law which actually are or will be paid to public officials for determining the existence of or for perfecting, releasing or satisfying a security interest related to a consumer credit sale, consumer lease or consumer loan; or

(b) (ii) premiums payable for insurance in lieu of perfecting a security interest otherwise required by the creditor in connection with the sale, lease or loan, if the premium does not exceed the fees and charges described in paragraph (a) which would otherwise be payable.

(b) `Official fees' does not mean -

(i) a premium payable for insurance in lieu of perfecting a security interest when the security interest is a purchase money security interest, as defined in Section 36-9-107, for which, in accordance with Section 36-9-302(1)(d), perfection by the filing of a financing statement is not required; or

(ii) a premium payable for insurance in lieu of perfecting a security interest upon the renewal or refinancing of the sale, lease, or loan, unless the renewal or refinancing occurs more than five years after the initial sale, lease, or loan or unless the actual amount of dollars given to the customer at the time of the renewal or refinancing is more than ten percent greater than the original loan amount."

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

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