H 4671 General Bill, By Harrison
 A BILL TO AMEND SECTION 29-3-325, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO RECORDING SATISFACTION OR CANCELLATION OF A MORTGAGE, SO AS TO
 DELETE CERTAIN PROVISIONS AND LANGUAGE AND PROVIDE, AMONG OTHER THINGS, THAT
 UPON PAYMENT IN FULL OF A MORTGAGE DEBT, WRITTEN REQUEST FOR SATISFACTION OF
 THE MORTGAGE, AND PAYMENT OF ANY REQUIRED SATISFACTION FEE, THE MORTGAGEE OR
 ASSIGNEE IS RESPONSIBLE FOR RECORDING THE SATISFACTION OR CANCELLATION OF THE
 MORTGAGE IT HOLDS; AND TO REPEAL SECTION 29-3-320, RELATING TO LIABILITY FOR
 FAILURE TO ENTER SATISFACTION OF A MORTGAGE.

   02/19/98  House  Introduced and read first time HJ-5
   02/19/98  House  Referred to Committee on Judiciary HJ-5
   04/01/98  House  Committee report: Favorable with amendment
                     Judiciary HJ-5
   04/02/98  House  Amended HJ-20
   04/02/98  House  Read second time HJ-21
   04/02/98  House  Unanimous consent for third reading on next
                     legislative day HJ-21
   04/03/98  House  Read third time and sent to Senate HJ-2
   04/07/98  Senate Introduced and read first time SJ-4
   04/07/98  Senate Referred to Committee on Banking and Insurance SJ-4
   05/19/98  Senate Committee report: Favorable Banking and Insurance SJ-19
   05/27/98  Senate Read second time SJ-108
   05/27/98  Senate Ordered to third reading with notice of
                     amendments SJ-108

POLLED OUT OF COMMITTEE

May 19, 1998

H. 4671

S. Printed 5/19/98--S.

Read the first time April 7, 1998.

To whom was referred a Bill (H. 4671), to amend Section 29-3-325, Code of Laws of South Carolina, 1976, relating to recording satisfaction or cancellation of a mortgage, etc., respectfully

Has polled the Bill out of committee without report.

A BILL

TO AMEND SECTION 29-3-325, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RECORDING SATISFACTION OR CANCELLATION OF A MORTGAGE, SO AS TO DELETE CERTAIN PROVISIONS AND LANGUAGE AND PROVIDE, AMONG OTHER THINGS, THAT UPON PAYMENT IN FULL OF A MORTGAGE DEBT, WRITTEN REQUEST FOR SATISFACTION OF THE MORTGAGE, AND PAYMENT OF ANY REQUIRED SATISFACTION FEE, THE MORTGAGEE OR ASSIGNEE IS RESPONSIBLE FOR RECORDING THE SATISFACTION OR CANCELLATION OF THE MORTGAGE IT HOLDS; AND TO REPEAL SECTION 29-3-320, RELATING TO LIABILITY FOR FAILURE TO ENTER SATISFACTION OF A MORTGAGE.

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

SECTION 1. Section 29-3-325 of the 1976 Code, as 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, Upon payment in full of a mortgage debt, written request for satisfaction of the mortgage, and payment of any required satisfaction fee, the mortgagee or assignee holder of the mortgage is responsible for recording forwarding to the recorder's office the satisfaction or cancellation of the mortgage it holds. Notwithstanding any limitations under Sections 37-2-202 and 37-3-202, The the financial institution holder of the mortgage may charge a reasonable fee at the time of the satisfaction not to exceed twenty-five dollars to cover the cost of processing and recording the satisfaction or cancellation. If the mortgagor instructs the holder of the mortgage that the mortgagor will be responsible for filing the satisfaction, the holder of the mortgage may mail or deliver the satisfied mortgage to the mortgagor, with no satisfaction fee charged.

If the financial institution holder of the mortgage fails to record forward the satisfaction or cancellation to the recorder's office or to the mortgagor within ninety days of receipt of (1) the full amount necessary to satisfy the debt or obligation secured by the mortgage, (2) a written request to satisfy the mortgage, and (3) payment of up to the above-described fee, if applicable, 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 holder of the mortgage to additional penalties of one hundred dollars for each ten days or portion thereof the penalty remains unpaid after receipt of demand not to exceed a total penalty of three thousand dollars per mortgage transaction.

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. Section 29-3-320 of the 1976 Code is repealed.

SECTION 3. This act takes effect upon approval by the Governor.