H 4635 General Bill, By Boan
 A Bill to amend Section 34-29-40, Code of Laws of South Carolina, 1976,
 relating to licenses for consumer finance companies; and to amend Section
 37-3-503, relating to supervised loan licenses for lenders under the
 provisions of the South Carolina Consumer Protection Code, so as to raise the
 minimum standard of financial responsibility for applicants from twenty-five
 thousand dollars in assets to seventy-five thousand dollars.

   03/31/92  House  Introduced and read first time HJ-37
   03/31/92  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-37
   05/21/92  House  Recalled from Committee on Labor, Commerce and
                     Industry HJ-57
   05/27/92  House  Debate adjourned until Tuesday, June 2, 1992 HJ-103
   06/02/92  House  Debate adjourned until Thursday, June 4, 1992 HJ-30
   06/04/92  House  Debate adjourned HJ-27

RECALLED

May 21, 1992

H. 4635

S. Printed 5/21/92--H.

Read the first time March 31, 1992.

A BILL

TO AMEND SECTION 34-29-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LICENSES FOR CONSUMER FINANCE COMPANIES; AND TO AMEND SECTION 37-3-503, RELATING TO SUPERVISED LOAN LICENSES FOR LENDERS UNDER THE PROVISIONS OF THE SOUTH CAROLINA CONSUMER PROTECTION CODE, SO AS TO RAISE THE MINIMUM STANDARD OF FINANCIAL RESPONSIBILITY FOR APPLICANTS FROM TWENTY-FIVE THOUSAND DOLLARS IN ASSETS TO SEVENTY-FIVE THOUSAND DOLLARS.

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

SECTION 1. Section 34-29-40(b) of the 1976 Code is amended to read:

"(b) The board shall grant or deny each application for a license which is accompanied by the required fees, within sixty days from the date of mailing said the notice, unless extended by written agreement of the applicant and board, if it shall find finds:

(1) that the financial responsibility, character, experience, and general fitness of the applicant are such as to command the confidence of the public and to warrant belief that the business will be operated lawfully, honestly, fairly, and efficiently within the purposes of this chapter, which requirements shall must be maintained during the period of the license,;

(2) that the applicant has available liquid assets of not less than twenty-five seventy-five thousand dollars for operation of such the business at the specified location; provided, that any licensed person engaged in the business of lending as of August 7, 1966, shall have five years from August 7, 1966 to meet this requirement, for the operation of such business at the specified location,; and

(3) allowing such the applicant to engage in business will promote the convenience and advantage of the community in which the licensed office is to be located; thereupon, it.

If the findings are made as provided in this subsection, the board shall enter an order granting the application, place on file its findings of fact, and forthwith immediately issue a license to the applicant. However, where the number of licensees in a community is less than two, upon properly qualified applications under clauses items (1) and (2) hereof, the board shall issue additional licenses as to bring the number of licenses to two in such the community."

SECTION 2. Section 37-3-503(2) of the 1976 Code is amended to read:

"(2) An applicant meets the minimum standard of financial responsibility for engaging in the business of making supervised loans (Section 37-3-502) if he has available for operation of that business in this State assets of at least twenty-five seventy-five thousand dollars for each license issued."

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