S*0351(Rat #0113, Act #0067 of 1999)  General Bill, By McConnell, Matthews, 
Courtney, Patterson, Reese, Hayes, Jackson and Passailaigue
 A BILL TO AMEND SECTION 29-3-310, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO THE ENTRY OF SATISFACTION OF A MORTGAGE, SO AS TO PROVIDE THAT ANY
 HOLDER OF RECORD OF A MORTGAGE, RATHER THAN "ANY PERSON", WHO HAS RECEIVED
 FULL PAYMENT OR SATISFACTION OR TO WHOM A LEGAL TENDER HAS BEEN MADE OF HIS
 DEBTS, DAMAGES, COSTS, AND CHARGES SECURED BY A MORTGAGE OF REAL ESTATE SHALL,
 AT THIS REQUEST BY CERTIFIED MAIL OR OTHER FORM OF DELIVERY WITH A PROOF OF
 DELIVERY OF THE MORTGAGOR OR HIS LEGAL REPRESENTATIVE OR ANY OTHER PERSON
 BEING A CREDITOR OF THE DEBTOR OR A PURCHASER UNDER HIM OR HAVING AN INTEREST
 IN ANY ESTATE BOUND BY THE MORTGAGE AND ON TENDER OF THE FEES OF OFFICE FOR
 ENTERING SATISFACTION, WITHIN THREE MONTHS AFTER THE CERTIFIED MAIL, OR OTHER
 FORM OF DELIVERY, WITH A PROOF OF DELIVERY, REQUEST IS MADE, ENTER
 SATISFACTION; TO AMEND SECTION 29-3-320, RELATING TO LIABILITY FOR FAILURE TO
 ENTER SATISFACTION OF A MORTGAGE, SO AS TO, AMONG OTHER THINGS, APPLY THE
 PROVISIONS OF THE SECTION TO A "HOLDER OF RECORD OF A MORTGAGE", REQUIRE A
 REQUEST BY CERTIFIED MAIL, OR OTHER FORM OF DELIVERY, WITH A PROOF OF
 DELIVERY, AND PROVIDE FOR AN ALTERNATE PENALTY OF TWENTY-FIVE THOUSAND DOLLARS
 PLUS ACTUAL DAMAGES, COSTS, AND ATTORNEY'S FEES; TO AMEND SECTION 29-3-330, AS
 AMENDED, RELATING TO METHODS OF ENTERING SATISFACTION OF A MORTGAGE, SO AS TO
 PROVIDE, AMONG OTHER THINGS, THAT ANY LICENSED ATTORNEY ADMITTED TO PRACTICE
 IN SOUTH CAROLINA WHO CAN PROVIDE PROOF OF PAYMENT OF FUNDS BY EVIDENCE OF
 PAYMENT MADE PAYABLE TO THE MORTGAGEE, HOLDER OF RECORD, SERVICER, OR OTHER
 PARTY ENTITLED TO RECEIVE PAYM

   01/19/99  Senate Introduced and read first time SJ-4
   01/19/99  Senate Referred to Committee on Banking and Insurance SJ-4
   04/08/99  Senate Recalled from Committee on Banking and Insurance SJ-2
   04/20/99  Senate Amended SJ-16
   04/20/99  Senate Read second time SJ-16
   04/20/99  Senate Ordered to third reading with notice of
                     amendments SJ-16
   04/28/99  Senate Amended SJ-27
   04/28/99  Senate Read third time and sent to House SJ-27
   05/04/99  House  Introduced and read first time HJ-8
   05/04/99  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-8
   05/12/99  House  Recalled from Committee on Labor, Commerce and
                     Industry HJ-35
   05/12/99  House  Referred to Committee on Judiciary HJ-35
   05/26/99  House  Committee report: Favorable with amendment
                     Judiciary HJ-12
   06/01/99  House  Amended HJ-39
   06/01/99  House  Read second time HJ-45
   06/02/99  House  Read third time and returned to Senate with
                     amendments HJ-14
   06/02/99  Senate Concurred in House amendment and enrolled SJ-53
   06/09/99         Ratified R 113
   06/11/99         Signed By Governor
   06/11/99         Effective date 06/11/99
   07/06/99         Copies available
   07/06/99         Act No. 67

AN ACT TO AMEND SECTION 29-3-310, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ENTRY OF SATISFACTION OF A MORTGAGE, SO AS TO PROVIDE THAT ANY HOLDER OF RECORD OF A MORTGAGE, RATHER THAN "ANY PERSON", WHO HAS RECEIVED FULL PAYMENT OR SATISFACTION OR TO WHOM A LEGAL TENDER HAS BEEN MADE OF HIS DEBTS, DAMAGES, COSTS, AND CHARGES SECURED BY A MORTGAGE OF REAL ESTATE SHALL, AT THIS REQUEST BY CERTIFIED MAIL OR OTHER FORM OF DELIVERY WITH A PROOF OF DELIVERY OF THE MORTGAGOR OR HIS LEGAL REPRESENTATIVE OR ANY OTHER PERSON BEING A CREDITOR OF THE DEBTOR OR A PURCHASER UNDER HIM OR HAVING AN INTEREST IN ANY ESTATE BOUND BY THE MORTGAGE AND ON TENDER OF THE FEES OF OFFICE FOR ENTERING SATISFACTION, WITHIN THREE MONTHS AFTER THE CERTIFIED MAIL, OR OTHER FORM OF DELIVERY, WITH A PROOF OF DELIVERY, REQUEST IS MADE, ENTER SATISFACTION; TO AMEND SECTION 29-3-320, RELATING TO LIABILITY FOR FAILURE TO ENTER SATISFACTION OF A MORTGAGE, SO AS TO, AMONG OTHER THINGS, APPLY THE PROVISIONS OF THE SECTION TO A "HOLDER OF RECORD OF A MORTGAGE", REQUIRE A REQUEST BY CERTIFIED MAIL, OR OTHER FORM OF DELIVERY, WITH A PROOF OF DELIVERY, AND PROVIDE FOR AN ALTERNATE PENALTY OF TWENTY-FIVE THOUSAND DOLLARS PLUS ACTUAL DAMAGES, COSTS, AND ATTORNEY'S FEES; TO AMEND SECTION 29-3-330, AS AMENDED, RELATING TO METHODS OF ENTERING SATISFACTION OF A MORTGAGE, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT ANY LICENSED ATTORNEY ADMITTED TO PRACTICE IN SOUTH CAROLINA WHO CAN PROVIDE PROOF OF PAYMENT OF FUNDS BY EVIDENCE OF PAYMENT MADE PAYABLE TO THE MORTGAGEE, HOLDER OF RECORD, SERVICER, OR OTHER PARTY ENTITLED TO RECEIVE PAYMENT MAY RECORD, OR CAUSE TO BE RECORDED, AN AFFIDAVIT, DULY EXECUTED IN THE PRESENCE OF TWO WITNESSES AND PROBATED OR ACKNOWLEDGED, WHICH STATES THAT FULL PAYMENT OF THE BALANCE OF THE MORTGAGE OR PAY-OFF AMOUNT OF THE MORTGAGE OR OTHER INSTRUMENT SECURING THE PAYMENT OF MONEY AND BEING A LIEN UPON REAL PROPERTY HAS BEEN MADE AND THAT EVIDENCE OF PAYMENT FROM THE MORTGAGEE, ASSIGNEE, OR SERVICER EXISTS; AND TO REPEAL SECTION 29-3-325, RELATING TO RECORDING SATISFACTION OR CANCELLATION OF A MORTGAGE, FEE, PENALTY, OPEN-END CREDIT PLANS, AND MORTGAGES WITH FUTURE ADVANCE CLAUSES.

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

Holder of record of mortgage; certified mail request; etc.

SECTION 1. Section 29-3-310 of the 1976 Code is amended to read:

"Section 29-3-310. Any holder of record of a mortgage who has received full payment or satisfaction or to whom a legal tender has been made of his debts, damages, costs, and charges secured by mortgage of real estate shall, at the request by certified mail or other form of delivery with a proof of delivery of the mortgagor or of his legal representative or any other person being a creditor of the debtor or a purchaser under him or having an interest in any estate bound by the mortgage and on tender of the fees of office for entering satisfaction, within three months after the certified mail, or other form of delivery, with a proof of delivery, request is made, enter satisfaction in the proper office on the mortgage which shall forever thereafter discharge and satisfy the mortgage."

Alternate penalty; fee; etc.

SECTION 2. Section 29-3-320 of the 1976 Code is amended to read:

"Section 29-3-320. Any holder of record of a mortgage having received such payment, satisfaction, or tender as aforesaid who shall not, by himself or his attorney, within three months after such certified mail, or other form of delivery, with a proof of delivery, request and tender of fees of office, repair to the proper office and enter satisfaction as aforesaid shall forfeit and pay to the person aggrieved a sum of money not exceeding one-half of the amount of the debt secured by the mortgage, or twenty-five thousand dollars, whichever is less, plus actual damages, costs, and attorney's fees in the discretion of the court, to be recovered by action in any court of competent jurisdiction within the State. And on judgment being rendered for the plaintiff in any such action, the presiding judge shall order satisfaction to be entered on the judgment or mortgage aforesaid by the clerk, register, or other proper officer whose duty it shall be, on receiving such order, to record it and to enter satisfaction accordingly.

Notwithstanding any limitations under Sections 37-2-202 and 37-3-202, the holder of record 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 or his legal representative instructs the holder of record of the mortgage that the mortgagor will be responsible for filing the satisfaction, the holder of the mortgage shall mail or deliver the satisfied mortgage to the mortgagor or his legal representative with no satisfaction fee charged."

Licensed attorney may act; affidavit; etc.

SECTION 3. Section 29-3-330 of the 1976 Code, as last amended by Act 478 of 1994, is further amended by adding:

"(e) Any licensed attorney admitted to practice in the State of South Carolina who can provide proof of payment of funds by evidence of payment made payable to the mortgagee, holder of record, servicer, or other party entitled to receive payment may record, or cause to be recorded, an affidavit, in writing, duly executed in the presence of two witnesses and probated or acknowledged, which states that full payment of the balance or pay-off amount of the mortgage or other instrument securing the payment of money and being a lien upon real property has been made and that evidence of payment from the mortgagee, assignee, or servicer exists. This affidavit, duly recorded in the appropriate county, shall serve as notice of satisfaction of the mortgage and release of the lien upon the real property. The filing of the affidavit shall be sufficient to satisfy, release, or discharge the lien. Upon presentation of the instrument of satisfaction, release, or discharge, the officer or his deputy having charge of the recording of instruments shall record the same. This section may not be construed to require an attorney to record an affidavit pursuant to Section 29-3-330(e) or to create liability for failure to file such affidavit. The licensed attorney signing any such instrument which is false is guilty of perjury and subject to Section 16-9-10 and shall be liable for damages that any person may sustain as a result of the false affidavit, including reasonable attorney's fees incurred in connection with the recovery of such damages. The affidavit referred to in this item (e) shall be as follows:

'STATE OF SOUTH CAROLINA MORTGAGE LIEN

COUNTY OF ______________ SATISFACTION AFFIDAVIT

PURSUANT TO SECTION 29-3-330

OF SC CODE OF LAWS

FOR BOOK ____ PAGE _____

The undersigned on oath, being first duly sworn, hereby certifies as follows:

1. The undersigned is a licensed attorney admitted to practice in the State of South Carolina.

2. That with respect to the mortgage given by __________________ to ______________________ dated _______ and recorded in the offices of the Register of Deeds in book _________ at page ________:

a. [ ] That the undersigned was given written payoff information and made such payoff and is in possession of a canceled check to the mortgagee, holder of record, or representative servicer;

b. [ ] That the undersigned was given written payoff information and made such payoff by wire transfer or other electronic means to the mortgagee, holder of record, or representative servicer and has confirmation from the undersigned's bank of the transfer to the account provided by the mortgagee, holder of record, or representative servicer.

Under penalties of perjury, I declare that I have examined this affidavit this ___ day of ____ and, to the best of my knowledge and belief, it is true, correct, and complete.

________________________ __________________________

(Witness) (Signature)

________________________ __________________________

(Witness) (Name - Please Print)

___________________________

(Attorney's S.C. Bar number)

SUBSCRIBED AND SWORN TO _______________________

before me this __________ day (Street Address)

of _______________________

_____________________________ _______________________

(City, State, Zip Code)

_________________________

(Notary Public) _______________________

(Telephone)

My commission expires: ________________________________'

Upon presentation to the office of the Register of Deeds the Register is directed to record pursuant to Section 29-3-330(e) and mark the mortgage satisfied of record."

Repeal

SECTION 4. Section 29-3-325 of the 1976 Code is repealed.

Time effective

SECTION 5. This act takes effect upon approval by the Governor.

Ratified the 9th day of June, 1999.

Approved the 11th day of June, 1999.