H*4795 Session 111 (1995-1996)
H*4795(Rat #0433, Act #0355 of 1996) General Bill, By Gamble
A Bill to amend Section 37-10-102, as amended, Code of Laws of South Carolina,
1976, relating to attorney's fees and other charges on mortgage loans for
personal, family, or household purposes, so as to provide that the creditor
must ascertain prior to the borrower's closing attorney preference and
insurance agent preference, to provide for the manner in which creditors may
comply with this preference requirement, and to permit the creditor to require
the attorney and insurance agent so chosen to comply with reasonable closing
procedures.-amended title
03/21/96 House Introduced and read first time HJ-6
03/21/96 House Referred to Committee on Labor, Commerce and
Industry HJ-7
04/24/96 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-4
05/01/96 House Amended HJ-17
05/01/96 House Read second time HJ-17
05/02/96 House Read third time and sent to Senate HJ-8
05/02/96 Senate Introduced and read first time SJ-42
05/02/96 Senate Referred to Committee on Banking and Insurance SJ-42
05/09/96 Senate Recalled from Committee on Banking and Insurance SJ-28
05/15/96 Senate Read second time SJ-25
05/15/96 Senate Ordered to third reading with notice of
amendments SJ-25
05/16/96 Senate Read third time and enrolled SJ-33
05/23/96 Ratified R 433
05/30/96 Became law without Governor's signature
05/30/96 Effective date 05/30/96
05/30/96 See act for exception to or explanation of
effective date
06/06/96 Copies available
06/06/96 Act No. 355
(A355, R433, H4795)
AN ACT TO AMEND SECTION 37-10-102, AS AMENDED,
CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
ATTORNEY'S FEES AND OTHER CHARGES ON MORTGAGE
LOANS FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES,
SO AS TO PROVIDE THAT THE CREDITOR MUST ASCERTAIN
PRIOR TO THE BORROWER'S CLOSING ATTORNEY
PREFERENCE AND INSURANCE AGENT PREFERENCE, TO
PROVIDE FOR THE MANNER IN WHICH CREDITORS MAY
COMPLY WITH THIS PREFERENCE REQUIREMENT, AND TO
PERMIT THE CREDITOR TO REQUIRE THE ATTORNEY AND
INSURANCE AGENT SO CHOSEN TO COMPLY WITH
REASONABLE CLOSING PROCEDURES.
Be it enacted by the General Assembly of the State of South
Carolina:
Attorney and insurance agent preferences
SECTION 1. Section 37-10-102(a) of the 1976 Code is amended to
read:
"(a) The creditor must ascertain prior to closing the preference
of the borrower as to the legal counsel that is employed to represent the
debtor in all matters of the transaction relating to the closing of the
transaction and except in the case of a loan on property that is subject to
the South Carolina Horizontal Property Act (Section 27-31-10 et seq.) the
insurance agent to furnish required hazard and flood property insurance
in connection with the mortgage and comply with such preference.
The creditor may comply with this section by:
(1) including the preference information on or with the credit
application so that this information shall be provided on a form
substantially similar to a form distributed by the administrator; or
(2) providing written notice to the borrower of the preference
information with the notice being delivered or mailed no later than three
business days after the application is received or prepared. If a creditor
uses a preference notice form substantially similar to a form distributed
by the administrator, the form is in compliance with this section.
The creditor may require the attorney or agent to provide reasonable
security to the creditor by way of mortgage title insurance in a company
acceptable to the creditor and to comply with reasonable closing
procedures. If title insurance is made a condition of the loan at any point
during the negotiations, it must remain a condition all the time thereafter
regardless of which attorney ultimately closes the transaction. Any legal
fees other than for examination and certification of the title, the
preparation of all required documents, and the closing of the transaction
required or incurred by the creditor in connection with the transaction is
the responsibility of the creditor regardless of which party pays for the
title work, document preparation, and closing."
Time effective
SECTION 2. This act takes effect upon approval by the Governor.
However, nothing in this act shall affect any cause of action, right, or
remedy accruing prior to the effective date of this act. Any such cause
of action, right, or remedy accruing prior to the effective date of this act
shall be governed by the law applicable at the time the cause of action,
right, or remedy accrued.
Became law without the signature of the Governor -- 5/30/96. |