S 607 Session 109 (1991-1992)
S 0607 General Bill, By Setzler, Courson, H.U. Fielding, Giese, J.C. Hayes,
D.L. Hinds, Holland, Land, J.A. Martin, Matthews, T.W. Mitchell, O'Dell,
Saleeby and J.M. Waddell
A Bill to amend Section 37-1-301, Code of Laws of South Carolina, 1976,
relating to general definitions in regard to the Consumer Protection Code, so
as to revise certain definitions; to amend Section 37-2-202, as amended,
relating to additional creditor charges, so as to revise these charges; to
amend Section 37-2-203, relating to delinquency charges on consumer credit
sales, so as to revise these charges; to amend Section 37-2-303, relating to
notices to co-signers and similar parties on consumer credit sales, so as to
provide for an additional notice to co-signers; to amend Section 37-2-305,
relating to filing and posting of maximum rate schedules in regard to consumer
credit sales, so as to provide for rate schedules in regard to variable rates
and to provide the date by which certain creditor filing fees are due, to
amend Section 37-2-306, relating to notice of assumption of rights, so as to
provide that every creditor engaged in making consumer loans pursuant to
seller credit cards shall make and file certain disclosures; to amend Section
37-3-104, relating to the definition of a consumer loan, so as to revise this
definition; to amend Section 37-3-105, relating to first mortgage real estate
loans, so as to correct an improper reference; to amend Section 37-3-202, as
amended, relating to additional lender charges, so as to further provide for
these charges; to amend Section 37-3-203, relating to delinquency charges on
certain consumer loans, so as to further provide for these charges; to amend
Section 37-3-303, relating to notice to co-signers and similar parties on
certain consumer loans, so as to provide for an additional notice to
co-signers; to amend Section 37-3-305, as amended, relating to the filing and
posting of maximum rate schedules by creditors, so as to further provide for
this filing and posting in regard to variable rates; to amend Section
37-3-306, relating to notice of assumption rights, so as to provide that every
creditor making consumer loans pursuant to a lender credit card must make and
file certain disclosures; to amend Section 37-3-510, relating to restrictions
on an interest in land as security, so as to exempt certain open-end credit
agreements from the provisions of this Section; to amend Section 37-4-203,
relating to filing and approval of credit insurance premium rates and charges,
so as to revise certain credit life insurance premiums which may be charged;
to amend Section 37-6-108, relating to administrative enforcement orders of
the administrator of the Department of Consumer Affairs, so as to further
provide for the violations which are subject to actions by the administrator
and to authorize the administrator to impose certain administrative penalties;
to amend Section 37-6-113, relating to civil actions by the administrator, so
as to further provide for the conditions under which a civil penalty may be
imposed; to amend Section 37-6-117, relating to the administrative
responsibilities regarding consumer protection of the administrator, so as to
further provide for these administrative responsibilities; to amend Section
37-6-203, relating to fees to be paid to the administrator, so as to clarify
the fee due by persons also engaged in making consumer rental-purchase
agreements; to amend Section 37-10-102, as amended, relating to attorney's
fees and other charges on mortgage loans for personal purposes, so as to
delete certain creditor disclosure statement requirements; to amend the 1976
Code by adding Section 37-10-107 so as to prohibit a person from maintaining
an action for relief regarding the borrowing of money under certain specified
conditions; to amend Section 39-61-100, relating to the authority of the
administrator under the Motor Club Services Act, so as to authorize the
administrator to impose penalties; to amend Section 40-39-150, relating to the
authority of the administrator in regard to pawnbrokers, so as to authorize
the administrator to issue cease and desist orders; to amend Section 44-79-80,
relating to the functions and powers of the administrator in regard to the
Physical Fitness Services Act, so as to further provide for these powers and
increase the fees for certificates of authority issued by the administrator;
and to repeal Section 37-6-114 relating to the prohibition against jury trials
in actions brought by the administrator under the Consumer Protection Code.
02/06/91 Senate Introduced and read first time SJ-5
02/06/91 Senate Referred to Committee on Banking and Insurance
03/14/91 Senate Committee report: Majority favorable with amend.,
minority unfavorable Banking and Insurance SJ-6
04/02/91 Senate Special order SJ-21
04/09/91 Senate Debate adjourned SJ-129
04/10/91 Senate Amended SJ-138
04/10/91 Senate Read second time SJ-141
04/10/91 Senate Ordered to third reading with notice of
amendments SJ-141
05/14/91 Senate Special order SJ-24
05/21/91 Senate Debate interrupted SJ-156
05/23/91 Senate Debate interrupted SJ-21
05/29/91 Senate Amended SJ-40
05/29/91 Senate Read third time and sent to House SJ-43
05/30/91 House Introduced and read first time HJ-63
05/30/91 House Referred to Committee on Labor, Commerce and
Industry HJ-65
05/30/91 House Recalled from Committee on Labor, Commerce and
Industry HJ-76
06/05/91 House Debate adjourned until Thursday, June 6, 1990 HJ-13
06/06/91 House Read second time HJ-27
01/14/92 House Tabled HJ-201
Indicates Matter Stricken
Indicates New Matter
RECALLED
May 30, 1991
S. 607
Introduced by SENATORS Setzler, Martin, Saleeby, Fielding, O'Dell,
Matthews, Mitchell, Hinds, Giese, Holland, Land, Waddell, Courson and
Hayes
S. Printed 5/30/91--H.
Read the first time May 30, 1991.
A BILL
TO AMEND SECTION 37-1-301, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO GENERAL DEFINITIONS IN
REGARD TO THE CONSUMER PROTECTION CODE, SO AS TO
REVISE CERTAIN DEFINITIONS; TO AMEND SECTION 37-2-202,
AS AMENDED, RELATING TO ADDITIONAL CREDITOR
CHARGES, SO AS TO REVISE THESE CHARGES; TO AMEND
SECTION 37-2-203, RELATING TO DELINQUENCY CHARGES ON
CONSUMER CREDIT SALES, SO AS TO REVISE THESE
CHARGES; TO AMEND SECTION 37-2-303, RELATING TO
NOTICES TO CO-SIGNERS AND SIMILAR PARTIES ON
CONSUMER CREDIT SALES, SO AS TO PROVIDE FOR AN
ADDITIONAL NOTICE TO CO-SIGNERS; TO AMEND SECTION
37-2-305, RELATING TO FILING AND POSTING OF MAXIMUM
RATE SCHEDULES IN REGARD TO CONSUMER CREDIT SALES,
SO AS TO PROVIDE FOR RATE SCHEDULES IN REGARD TO
VARIABLE RATES AND TO PROVIDE THE DATE BY WHICH
CERTAIN CREDITOR FILING FEES ARE DUE; TO AMEND
SECTION 37-2-306, RELATING TO NOTICE OF ASSUMPTION OF
RIGHTS, SO AS TO PROVIDE THAT EVERY CREDITOR
ENGAGED IN MAKING CONSUMER LOANS PURSUANT TO
SELLER CREDIT CARDS SHALL MAKE AND FILE CERTAIN
DISCLOSURES; TO AMEND SECTION 37-3-104, RELATING TO
THE DEFINITION OF A CONSUMER LOAN, SO AS TO REVISE
THIS DEFINITION; TO AMEND SECTION 37-3-105, RELATING
TO FIRST MORTGAGE REAL ESTATE LOANS, SO AS TO
CORRECT AN IMPROPER REFERENCE; TO AMEND SECTION
37-3-202, AS AMENDED, RELATING TO ADDITIONAL LENDER
CHARGES, SO AS TO FURTHER PROVIDE FOR THESE
CHARGES; TO AMEND SECTION 37-3-203, RELATING TO
DELINQUENCY CHARGES ON CERTAIN CONSUMER LOANS,
SO AS TO FURTHER PROVIDE FOR THESE CHARGES; TO
AMEND SECTION 37-3-303, RELATING TO NOTICE TO
CO-SIGNERS AND SIMILAR PARTIES ON CERTAIN CONSUMER
LOANS, SO AS TO PROVIDE FOR AN ADDITIONAL NOTICE TO
CO-SIGNERS; TO AMEND SECTION 37-3-305, AS AMENDED,
RELATING TO THE FILING AND POSTING OF MAXIMUM RATE
SCHEDULES BY CREDITORS, SO AS TO FURTHER PROVIDE
FOR THIS FILING AND POSTING IN REGARD TO VARIABLE
RATES; TO AMEND SECTION 37-3-306, RELATING TO NOTICE
OF ASSUMPTION RIGHTS, SO AS TO PROVIDE THAT EVERY
CREDITOR MAKING CONSUMER LOANS PURSUANT TO A
LENDER CREDIT CARD MUST MAKE AND FILE CERTAIN
DISCLOSURES; TO AMEND SECTION 37-3-510, RELATING TO
RESTRICTIONS ON AN INTEREST IN LAND AS SECURITY, SO
AS TO EXEMPT CERTAIN OPEN-END CREDIT AGREEMENTS
FROM THE PROVISIONS OF THIS SECTION; TO AMEND
SECTION 37-4-203, RELATING TO FILING AND APPROVAL OF
CREDIT INSURANCE PREMIUM RATES AND CHARGES, SO AS
TO REVISE CERTAIN CREDIT LIFE INSURANCE PREMIUMS
WHICH MAY BE CHARGED; TO AMEND SECTION 37-6-108,
RELATING TO ADMINISTRATIVE ENFORCEMENT ORDERS OF
THE ADMINISTRATOR OF THE DEPARTMENT OF CONSUMER
AFFAIRS, SO AS TO FURTHER PROVIDE FOR THE VIOLATIONS
WHICH ARE SUBJECT TO ACTIONS BY THE ADMINISTRATOR
AND TO AUTHORIZE THE ADMINISTRATOR TO IMPOSE
CERTAIN ADMINISTRATIVE PENALTIES; TO AMEND SECTION
37-6-113, RELATING TO CIVIL ACTIONS BY THE
ADMINISTRATOR, SO AS TO FURTHER PROVIDE FOR THE
CONDITIONS UNDER WHICH A CIVIL PENALTY MAY BE
IMPOSED; TO AMEND SECTION 37-6-117, RELATING TO THE
ADMINISTRATIVE RESPONSIBILITIES REGARDING
CONSUMER PROTECTION OF THE ADMINISTRATOR, SO AS TO
FURTHER PROVIDE FOR THESE ADMINISTRATIVE
RESPONSIBILITIES; TO AMEND SECTION 37-6-203, RELATING
TO FEES TO BE PAID TO THE ADMINISTRATOR, SO AS TO
CLARIFY THE FEE DUE BY PERSONS ALSO ENGAGED IN
MAKING CONSUMER RENTAL-PURCHASE AGREEMENTS; TO
AMEND SECTION 37-10-102, AS AMENDED, RELATING TO
ATTORNEY'S FEES AND OTHER CHARGES ON MORTGAGE
LOANS FOR PERSONAL PURPOSES, SO AS TO DELETE
CERTAIN CREDITOR DISCLOSURE STATEMENT
REQUIREMENTS; TO AMEND THE 1976 CODE BY ADDING
SECTION 37-10-107 SO AS TO PROHIBIT A PERSON FROM
MAINTAINING AN ACTION FOR RELIEF REGARDING THE
BORROWING OF MONEY UNDER CERTAIN SPECIFIED
CONDITIONS; TO AMEND SECTION 39-61-100, RELATING TO
THE AUTHORITY OF THE ADMINISTRATOR UNDER THE
MOTOR CLUB SERVICES ACT, SO AS TO AUTHORIZE THE
ADMINISTRATOR TO IMPOSE PENALTIES; TO AMEND
SECTION 40-39-150, RELATING TO THE AUTHORITY OF THE
ADMINISTRATOR IN REGARD TO PAWNBROKERS, SO AS TO
AUTHORIZE THE ADMINISTRATOR TO ISSUE CEASE AND
DESIST ORDERS; TO AMEND SECTION 44-79-80, RELATING TO
THE FUNCTIONS AND POWERS OF THE ADMINISTRATOR IN
REGARD TO THE PHYSICAL FITNESS SERVICES ACT, SO AS TO
FURTHER PROVIDE FOR THESE POWERS AND INCREASE THE
FEES FOR CERTIFICATES OF AUTHORITY ISSUED BY THE
ADMINISTRATOR; AND TO REPEAL SECTION 37-6-114
RELATING TO THE PROHIBITION AGAINST JURY TRIALS IN
ACTIONS BROUGHT BY THE ADMINISTRATOR UNDER THE
CONSUMER PROTECTION CODE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 37-1-301(16) of the 1976 Code is amended to
read:
"(16) `Lender credit card or similar arrangement' means an
open-end credit arrangement or loan agreement, other than a
seller credit card, pursuant to which a lender gives a debtor the privilege
of using a credit card, letter of credit, or other credit confirmation or
identification in transaction transactions out of which
debt arises:
(a) by the lender's honoring a draft or similar order for payment
of money drawn or accepted by the debtor;
(b) by the lender's payment or agreement to pay the debtor's
obligations; or
(c) by the lender's purchase from the obligee of the debtor's
obligations.
An open-end credit agreement under which a person can effect an
immediate advance by check or other draft qualifies as a lender credit
card or similar arrangement."
SECTION 2. Section 37-2-202(1)(c) of the 1976 Code is amended to
read:
"(c) with respect to open-end credit pursuant to a seller
credit card issued by a creditor which entitles the cardholder to
purchase or lease goods or services from at least one hundred persons
not related to the card issuer, under an arrangement pursuant to which
the debts resulting from the purchases or leases are payable to the card
issuer;
(i) annual charges, payable in advance, for the privilege of
using the credit card; and
(ii) an over-limit charge not to exceed ten dollars if the balance
of the account exceeds the credit limit established pursuant to the
agreement between the card issuer and the cardholder plus the lesser of
ten percent of the credit limit or one hundred dollars. The over-limit
charge authorized by this subitem may not be assessed again against the
cardholder unless the account balance has been reduced below the credit
limit plus the lesser of ten percent of the credit limit or one hundred
dollars and the cardholder's account balance subsequently exceeds the
credit limit plus the lesser of ten percent of the credit limit or one
hundred dollars."
SECTION 3. Section 37-2-202(2)(b) of the 1976 Code is amended to
read:
"(b) with respect to consumer credit insurance providing life,
accident, or health, or unemployment coverage, if the
insurance coverage is not required by the creditor, and this fact is clearly
and conspicuously disclosed in writing to the consumer, and if in order
to obtain the insurance in connection with the extension of credit, the
consumer gives specific, dated, and separately signed affirmative written
indication of his desire to do so after written disclosure to him of the
cost thereof of it with a statement similar to the following
appearing in caps, underlined or disclosed in another prominent manner
with the consumer signature required by this section : CONSUMER
CREDIT INSURANCE IS NOT REQUIRED TO OBTAIN CREDIT
AND WILL NOT BE PROVIDED UNLESS YOU SIGN AND AGREE
TO PAY THE ADDITIONAL COST; and"
SECTION 4. Section 37-2-203 of the 1976 Code is amended to read:
"Section 37-2-203. (1) With respect to a precomputed
consumer credit sale including an open-end consumer credit sale
pursuant to a seller credit card, and a consumer credit sale
which, is secured by a lien on real estate or residential manufactured
home where the transaction is not precomputed, and any
refinancings or consolidations of all such credit sales, the parties may
contract for a delinquency charge on any installment not paid in full
within ten days after its due date, as originally scheduled or as deferred,
in an amount not exceeding five dollars, which is not more than five
percent of the unpaid amount of the installment.
(2) Notwithstanding subsection (1) the seller may
contract for and receive a minimum delinquency charge not to exceed
forty percent of five dollars as adjusted pursuant to Section 37-1-109.
The seller may contract for such a minimum charge even though the
charge exceeds five percent of the unpaid amount of the
installment.
(3) A statement in the agreement between the creditor
and the debtor to the effect that the creditor may charge the maximum
delinquency charge (or late charge) authorized by law entitles the
creditor to impose a delinquency charge in the dollar amount specified
in subsections (1) and (2) as adjusted pursuant to Section 37-1-109 at the
time the delinquency charge is imposed, subject to the five percent of the
unpaid amount of the installment limitation, if applicable.
(2)(4) A delinquency charge under subsection
(1) this section may be collected only once on an
installment however long it remains in default. No delinquency charge
may be collected with respect to a deferred installment unless the
installment is not paid in full within ten days after its deferred due date.
A delinquency charge may be collected at the time it accrues or at any
time thereafter.
(3)(5) A delinquency charge under subsection
(1) this section may not be collected on an installment paid
in full within ten days after its scheduled or deferred installment due
date even though an earlier maturing installment or a delinquency or
deferral charge on an earlier installment has not been paid in full. For
purposes of this subsection, a payment is deemed to have been applied
first to any installment due in the computational period [Section
37-2-204(1)(a)] in which it is received and then to delinquent
installments and charges."
SECTION 5. Section 37-2-303 of the 1976 Code is amended by adding:
"(5) A notice to co-signer which complies with the Federal
Trade Commission's Trade Regulation Rule on Credit Practices (16
C.F.R. Section 444) complies with this section provided that the notice
does not indicate that the creditor may collect any amount or engage in
any activity which would be illegal under South Carolina law, and the
notice contains the following information signed and dated by the
co-signer.
IDENTIFICATION OF DEBT YOU MAY HAVE TO
PAY
(Name of Debtor)
(Name of Creditor)
(Date)
(Kind of Debt)
I have received a copy of this notice.
(Date) (Signed)."
SECTION 6. Section 37-2-305 of the 1976 Code is amended to read:
"Section 37-2-305. (1) Every creditor (Section 37-1-301(13)),
intending to impose a credit service charge in excess of eighteen percent
per annum other than an assignee of a credit obligation, making
consumer credit sales (Section 37-2-104) in this State shall on or
before the effective date of this section, and in the case of a creditor not
making consumer credit sales in this State on that date, on or before the
date the creditor begins to make such credit sales in this State,
shall file with the Department of Consumer Affairs and, except
as otherwise provided in this section, post in one conspicuous place in
every place of business in this State, if any, in which offers to
make consumer credit sales are extended, a maximum rate schedule
meeting the requirements set forth in subsections (2), (3), and
(4) of this section.
(a) A creditor that has seller credit cards or similar arrangements
(Section 37-1-301(26)) shall is not be required
to post a copy of the required rate schedule in any place of business
which is authorized to honor such transactions; provided that the creditor
shall include a conspicuous statement of the maximum rate it intends to
charge for these transactions in the initial disclosure statement required
to be provided the debtor by the Federal Truth-In-Lending Act and
notifies the debtor of any change in the maximum rate on or before the
effective date of the change.
(b) [Blank]
(2) The rate schedule required to be filed and posted by subsection (1)
shall must contain a list of the maximum rate of credit
service charge (Section 37-2-109) stated as an annual percentage rate,
determined in accordance with the Federal Truth-In-Lending Act and
Federal Reserve Board Regulation Z, that the creditor intends to charge
for consumer credit transactions in each of the following categories of
credit:
(a) unsecured credit sales;
(b) secured credit sales other than those secured by real estate;
(c) credit sales secured by real estate;
(d) open-end (revolving) credit;
(e) all other.
If a variable rate is applicable to one or more categories or
subcategories, the rate schedule must designate the rate as a variable rate
and disclose the index for calculating changes in the rate and the cap or
other limitation, if any, on any increases or decreases in the rate.
The creditor may include as many subcategories as it chooses under
each of the specified categories, and may, at its option, include a series
of rates for different dollar amounts and maturities. A creditor may omit
one or more of the categories from the rate schedule if the creditor does
not make consumer credit transactions falling within the omitted
categories.
(3) The rate schedule that is filed by the creditor shall
must be reproduced in at least fourteen-point type for posting
as required by subsection (1). The terms `Credit Service Charge' and
`Annual Percentage Rate' will be printed in larger size type than the
other terms in the posted rate schedule. The following statement
shall must be included in the posted rate schedule:
`Consumers: All creditors making consumer credit sales in South
Carolina are required by law to post a schedule showing the maximum
rate of CREDIT SERVICE CHARGES expressed as the FINANCE
CHARGE stated as ANNUAL PERCENTAGE RATES that the creditor
intends to charge for various types of consumer credit transactions. The
purpose of this requirement is to assist you in comparing the maximum
rates that creditors charge, thereby furthering your understanding of the
terms of consumer credit transactions and helping you to avoid the
uninformed use of credit. NOTE: Creditors are prohibited only from
granting consumer credit at rates higher than those specified above. A
creditor may be willing to grant you credit at rates that are lower than
those specified, depending on the amount, terms, collateral and your
credit worthiness.'
(4) A rate schedule filed and posted as required by this section
shall be is effective until changed in accordance with
this subsection. A creditor wishing to change any of the maximum rates
shown on a schedule previously filed and posted or to add or delete the
prescribed categories or subcategories shall file with the Department of
Consumer Affairs, in duplicate, together with the required fee specified
in subsection (6) and shall post as required by subsection (1) a
revised schedule of maximum rates. The revised schedule shall
must be certified and returned to the creditor if properly filed.
The revised rate schedule shall be is effective for all
consumer credit extended after the close of business on the day the
certified schedule is received by the creditor or seven days after the date
of submission postmark, whichever is earlier. The posting or changes in
connection with seller credit cards and similar arrangements shall be
made in accordance with subsection (1).
(5) A creditor shall have has no obligation to print
the maximum rate schedule in any public advertisement that mentions
rates charged by that creditor.
(6) The Department of Consumer Affairs shall maintain a file for
each creditor containing the original and all revised rate schedules by the
creditor. A certified copy of each filing showing the date and time that
it was received must be sent to the creditor making the filing at the time
of its receipt. A fee of twenty dollars for each rate schedule filed by a
creditor is payable to the Department of Consumer Affairs for its
services in maintaining the rate schedule files and providing one
certified copy of each rate filing to the creditor. Additional certified
copies of a filing must be provided at a charge of four dollars for each
copy.
(7) The Commission on Consumer Affairs shall promulgate a
regulation pursuant to subsection (2) of Section 37-6-506 establishing
the format of the rate schedules prescribed by this section.
(8) Every creditor shall file at least one maximum rate schedule and
pay at least one twenty-dollar filing fee during each state fiscal year
disclosing that creditor's existing maximum rates. This filing and
fee required of each creditor is due annually before the thirty-first day
of January of each year. If this filing does not change any
maximum rates previously filed, the creditor is not required to alter
posted maximum rates. If any creditor has not filed a maximum rate
schedule with the Department of Consumer Affairs by the thirty-first
day of January of the year in which it is due, then on this date
since the beginning of the previous state fiscal year then on July first
of the following year the filing is no longer effective and the
maximum credit service charge that the creditor may impose on any
credit extended after that date may not exceed eighteen percent a year
until such time as the creditor files a revised maximum rate schedule that
complies with this section."
SECTION 7. Section 37-2-306 of the 1976 Code is amended to read:
"Section 37-2-306. The notice provisions of Section
37-10-102(c) shall apply whenever a note, mortgage, deed of trust, bond
for title or other instrument evidencing a consumer credit sale contains
a provision that the holder of the instrument may accelerate payment of
or renegotiate the terms of the credit transaction upon any transfer of the
real estate securing the property. (A) Every creditor engaged in
this State in making consumer credit sales pursuant to a seller credit card
shall:
(1) File on or before January thirty-first of each
year with the Department of Consumer Affairs for every seller card plan
it offers to South Carolina residents the disclosures required for credit
and charge card applications and solicitations by the Federal
Truth-in-Lending Act, Federal Reserve Board Regulation Z, Section
226.5a(b), 12 C.F.R. Section 226.5a(b), and any amendments or
replacements. The disclosures required by this section must be based on
fees and charges and other terms in effect as of December thirty-first of
the prior year. The required disclosures may be filed by providing one
or more actual applications or solicitations used by the creditor which
contain the required disclosures or by providing the disclosures on one
or more of the Model Forms in Appendix G of Federal Reserve Board
Regulation Z. The annual filing fee for each creditor is twenty dollars,
payable at the time the disclosures are filed regardless of the number of
filings; and
(2) File with the Department of Consumer Affairs
current figures on the disclosures required by paragraph (1) of this
section within thirty days after receiving a written request for this
information from the administrator. No filing fee may be imposed for
this information request.
(B) Failure to file the disclosures required by this
section and any errors in these disclosures does not affect the validity of
any transaction or the maximum rates or charges in any transaction made
by the creditor, but the creditor is subject to the administrative remedies
in Part 1 of Chapter 6."
SECTION 8. Section 37-3-104 of the 1976 Code is amended to read:
"Section 37-3-104.(1) Except as provided in Section
37-3-105, `consumer loan' is a loan made by a person regularly engaged
in the business of making loans in which--:
(a) the debtor is a person other than an organization;
(b) the debt is incurred primarily for a personal, family,
or household purpose;
(c) either the debt is payable in installments or a loan finance
charge is made; and
(d) either the principal does not exceed twenty-five thousand
dollars or the debt is secured by an interest in land.
(2) "Consumer loan" does not include a loan primarily
secured by a first lien which is a purchase money security interest in
land."
SECTION 9. Section 37-3-105(2)(c) is amended to read:
"(c) Whenever the primary purpose of the credit extended is not
to enable the debtor to buy or build a residence on residential real
property, the administrative powers in Part 1 of Article 6. If an
organization origination charge, prepaid finance charge,
prepaid points, service, or other prepaid charge substantially exceeds the
usual and customary charge for a particular type of loan, the creditor is
subject to the provisions of Part 1, of Chapter 6 of Title
37, notwithstanding that the origination charge, prepaid finance charge,
prepaid points, service, or other prepaid charge is properly disclosed as
part of the finance charge for purposes of complying with the Federal
Truth-in-Lending Act or part or all of the origination charge, prepaid
finance charge, prepaid points charge, service, or other prepaid charges
are rebatable or refundable upon prepayment or acceleration of the
obligation. For the purpose of this paragraph, a creditor shall
is not be subject to any liability if the loan finance
charge and other fees and charges imposed by the creditor and the
collection practices followed in administering or enforcing the loan are
usual and customary for the particular type of loan. A charge, collection
practice, or administrative procedure that is authorized or required by
any state or federal statute or regulation relating to mortgage loans; or
in any official manual setting forth the procedures for real estate
mortgages issued by any governmental or quasi-governmental
organization that purchases, insures, or guarantees such loans,
including without limitation, manuals issued by the Federal Housing
Administration, Veterans Administration, Farmers Home
Administration, Federal National Mortgage Association, Government
National Mortgage Association, Federal Home Loan Corporation, or by
any organization that regularly insures mortgages and is authorized to
conduct such business in this State, shall be is deemed
to be usual and customary."
SECTION 10. Section 37-3-202 of the 1976 Code, as last amended by
Act 164 of 1989, is further amended to read:
"(1) In addition to the loan finance charge permitted by this
chapter a lender may contract for and receive the following additional
charges in connection with a consumer loan:
(a) official fees and taxes;
(b) charges for insurance as described in subsection (2);
(c) annual charges, payable in advance, for the privilege of
using a lender credit card or similar arrangement which entitles the
cardholder to purchase or lease goods or services from at least one
hundred persons not related to the issuer of the lender credit card or
similar arrangement, under an arrangement pursuant to which the debts
resulting from such transactions are payable to the issuer; and
With respect to open-end credit pursuant to a lender credit card
issued by a creditor which entitles the cardholder to purchase or lease
goods or services from at least one hundred persons not related to the
card issuer, under an arrangement pursuant to which the debts resulting
from the purchases or leases are payable to the card issuer;
(i) annual charges, payable in advance, for the privilege of
using the credit card; and
(ii) an over-limit charge not to exceed ten dollars if the balance
of the account exceeds the credit limit established pursuant to the
agreement between the card issuer and the cardholder plus the lesser of
ten percent of the credit limit of one hundred dollars. The over-limit
charge authorized by this subitem may not be assessed again against the
cardholder unless the account balance has been reduced below the credit
limit plus the lesser of ten percent of the credit limit or one hundred
dollars and the cardholder's account balance subsequently exceeds the
credit limit plus the lesser of ten percent of the credit limit or one
hundred dollars; and
(d) with respect to a loan secured by an interest in land, the
following `closing costs', if they are bona fide, reasonable in amount,
and not for the purpose of circumvention or evasion of this title:
(i) fees or premiums for title examination, abstract of title,
title insurance, surveys, or similar purposes,;
(ii) fees for preparation of a deed, settlement statement, or
other documents, if not paid to the creditor or a person related to the
creditor,;
(iii) escrows for future payments of taxes, including
assessments for improvements, insurance, and water, sewer, and
land rents, and;
(iv) fees for notarizing deeds and other documents, if not paid
to the creditor or a person related to the creditor; and
(v) fees for appraising the real estate that is collateral for the
loan, if not paid to the creditor or a person related to the
creditor.;
(e) charges for other benefits, including insurance, conferred on
the debtor, if the benefits are of value to him and if the charges are
reasonable in relation to the benefits, are of a type which is not for
credit, and are authorized as permissible additional charges by rule
adopted by the administrator.;
(f) fees and charges paid to persons registered as mortgage loan
brokers pursuant to Chapter 58 of Title 40.
(2) An additional charge may be made for insurance written in
connection with the loan, other than insurance protecting the lender
against the debtor's default or other credit loss, with respect
to:
(a) with respect to insurance against loss of or damage to
property, or against liability, if the lender furnishes a clear and specific
statement in writing to the debtor, setting forth the cost of the insurance
if obtained from or through the lender, and stating that the debtor may
choose the person through whom the insurance is to be obtained;
(b) with respect to consumer credit insurance
providing life, accident and health, or unemployment insurance
coverage, if the insurance coverage is not required by the lender, and
this fact is clearly and conspicuously disclosed in writing to the debtor,
and if, in order to obtain the insurance in connection with the loan, the
debtor gives specific, dated, and separately signed affirmative written
indication of his desire to do so after written disclosure to him of the
cost thereof with a statement similar to the following appearing in
caps, underlined, or disclosed in another prominent manner with the
consumer signature required by this section: CONSUMER CREDIT
INSURANCE IS NOT REQUIRED TO OBTAIN CREDIT AND WILL
NOT BE PROVIDED UNLESS YOU SIGN AND AGREE TO PAY
THE ADDITIONAL COST; and
(c) with respect to vendor's single interest insurance, but
only:
(i) to the extent that the insurer has no right of subrogation
against the debtor; and
(ii) to the extent that the insurance does not duplicate the
coverage of other insurance under which loss is payable to the creditor
as his interest may appear, against loss of or damage to property for
which a separate charge is made to the debtor pursuant to paragraph
(a),; and
(iii) if a clear, conspicuous, and specific statement in writing is
furnished by the creditor to the debtor setting forth the cost of the
insurance if obtained from or through the creditor and stating that the
debtor may choose the person through whom the insurance is to be
obtained.;
(3) With respect to an assumption of an existing obligation, the
seller lender may, in addition to the other authorized
charges, charge an assumption fee not exceeding the lesser of four
hundred dollars or one percent of the unpaid balance of the debt at the
time the assumption transaction is consummated whenever the primary
collateral securing the credit is real estate or a residential manufactured
home and not exceeding the lesser of fifty dollars or one percent of the
unpaid balance of the debt at the time the assumption transaction is
consummated whenever the primary collateral securing the credit is
personal property other than a residential manufactured home."
SECTION 11. Section 37-3-203 of the 1976 Code is amended to read:
"Section 37-3-203. (1) With respect to a precomputed
consumer loan including an open-end consumer loan pursuant to a
lender credit card or similar arrangement, and any consumer
loan which is secured by a lien on real estate or residential manufactured
home where the transaction is not precomputed, and any
refinancings or consolidations of all such consumer loans, the parties
may contract for a delinquency charge on any installment not paid in full
within ten days after its due date, as originally scheduled or as deferred,
in an amount, not exceeding five dollars which is not more than five
percent of the unpaid amount of the installment.
(2) Notwithstanding subsection (1) the lender may
contract for and receive a minimum delinquency charge not to exceed
forty percent of five dollars as adjusted pursuant to Section 37-1-109.
The lender may contract for such a minimum charge even though the
charge exceeds five percent of the unpaid amount of the
installment.
(3) A statement in the agreement between the lender
and the debtor to the effect that the lender may charge the maximum
delinquency charge (or late charge) authorized by law entitles the
creditor to impose a delinquency charge in the dollar amount specified
in subsections (1) and (2) as adjusted pursuant to Section 37-1-109 at the
time the delinquency charge is imposed, subject to the five percent of the
unpaid amount of the installment limitation, if applicable.
(2)(4) A delinquency charge under subsection
(1) this section may be collected only once on an
installment however long it remains in default. No delinquency charge
may be collected with respect to a deferred installment unless the
installment is not paid in full within ten days after its deferred due date.
A delinquency charge may be collected at the time it accrues or at any
time thereafter.
(3)(5) A delinquency charge under subsection
(1) this section may not be collected on an installment paid
in full within ten days after its scheduled or deferred installment due
date even though an earlier maturing installment or a delinquency or
deferral charge on an earlier installment has not been paid in full. For
purposes of this subsection, a payment is deemed to have been applied
first to any installment due in the computational period [Section
37-3-204(1)(a)] in which it is received and then to delinquent
installments and charges.
(4)(6) If two installments or parts thereof of a
precomputed consumer loan are in default for ten days or more, the
lender may elect to convert the loan from a precomputed loan to one in
which the loan finance charge is based on unpaid balances. In this event,
he shall make a rebate pursuant to the provisions on rebate upon
prepayment (Section 37-3-210) as if the date of prepayment were one
day before the maturity date of a delinquent installment, and thereafter
may make a loan finance charge as authorized by the provisions on loan
finance charge for consumer loans by lenders not supervised lenders
[Section 37-3-201(1)] or finance charge for consumer loans by
supervised lenders [Section 37-3-201(2)], whichever is appropriate. The
amount of the rebate shall must not be reduced by the
amount of any permitted minimum charge (Section 37-3-210). If the
creditor proceeds under this subsection, any delinquency or deferral
charges made with respect to installments due on or after the maturity
date of the first delinquent installment shall must be
rebated, and no further delinquency or deferral charges shall
may be made."
SECTION 12. Section 37-3-303 of the 1976 Code is amended by
adding:
"(5) A notice to co-signer which complies with the Federal
Commission's Trade Regulation Rule on Credit Practices (16 C.F.R.
Section 444) or which complies with a regulation regarding co-signer
notices promulgated by any federal agency pursuant to Section 18(f) of
the Federal Trade Commission Act, 15 U.S.C. Section 57a(f) (Section
202(a) of the Magnuson-Moss Warranty-Federal Trade Commission
Improvement Act, Public Law 93-63F) likewise complies with this
section, provided that the notice does not indicate that the creditor may
collect any amount or engage in any activity which would be illegal
under South Carolina law and the notice contains the following
information signed and dated by the co-signer:
IDENTIFICATION OF DEBT YOU MAY HAVE TO
PAY
(Name of Debtor)
(Name of Creditor)
(Date)
(Kind of Debt)
I have received a copy of this notice.
(Date) (Signed)."
SECTION 13. (A) Section 37-3-305(1) of the 1976 Code is amended to
read:
"(1) Every creditor [Section 37-1-301(13)], other than an
assignee of a credit obligation, making supervised or restricted consumer
loans (Section 37-3-104) in this State shall on or before the effective
date of this section, and in case of a creditor not making supervised
consumer loans in this State on that date, on or before the date the
creditor begins to make such loans in this State, file with the Department
of Consumer Affairs and, except as otherwise provided in this section,
post in one conspicuous place in every place of business, if any,
in this State in which offers to make consumer loans are extended, a
certified maximum rate schedule meeting the requirements set forth in
subsections (2), (3), and (4) of this section.
A creditor that has issued lender credit cards or similar arrangements
[Section 37-1-301(16)] shall is not be required
to post a copy of the required rate schedule in any place of business
which is authorized to honor such transactions except its central and
branch offices other than a branch office that is a free-standing
automatic teller machine; provided, that the creditor shall include a
conspicuous statement of the maximum rate it intends to charge for these
transactions in the initial disclosure statement required to be provided
the debtor by the Federal Truth-In-Lending Act and notifies the debtor
of any change in the maximum rate on or before the effective date of the
change."
(B) Section 37-3-305(2) of the 1976 Code is amended to read:
"(2) The rate schedule required to be filed and posted by
subsection (1) shall must contain a list of the maximum
rate of loan finance charge (Section 37-3-109) stated as an annual
percentage rate, determined in accordance with the Federal
Truth-In-Lending Act and Federal Reserve Board Regulation Z, that the
creditor intends to charge for consumer credit transactions in each of the
following categories of credit:
(a) unsecured personal loans;
(b) secured personal loans other than those secured by real estate;
(c) real estate mortgage loans;
(d) open-end (revolving) credit;
(e) all other.
The creditor may include as many subcategories as it chooses under
each of the specified categories, and may, at its option, include a series
of rates for different dollar amounts and maturities. A creditor may omit
one or more of the categories from the rate schedule if the creditor does
not make consumer credit transactions falling within the omitted
categories.
If a variable rate is applicable to one or more categories or
subcategories, the rate schedule must designate the rate as a variable rate
and disclose the index for calculating changes in the rate and the cap or
other limitation, if any, on any increases or decreases in the
rate."
SECTION 14. Section 37-3-306 of the 1976 Code is amended to read:
"Section 37-3-306. The notice provisions of Section
37-10-102(c) shall apply whenever a note, mortgage, deed of trust, bond
for title or other instrument evidencing a consumer loan contains a
provision that the holder of the instrument may accelerate payment of or
renegotiate the terms of the loan upon any transfer of the real estate
securing the property. (1) Every creditor engaged in this State
in making consumer loans pursuant to a lender credit card or similar
arrangement shall:
(a) file on or before January thirty-first of each year
with the Department of Consumer Affairs for every lender card plan it
offers to South Carolina residents the disclosures required for credit and
charge card applications and solicitations by the Federal
Truth-In-Lending Act, Federal Reserve Board Regulation Z, Section
226.5a(b), 12 C.F.R. Section 226.5a(b), and any amendments or
replacements thereto. The disclosures required by this section must be
based on fees and charges and other terms in effect as of December
thirty-first of the prior year. The required disclosures may be filed by
providing one or more actual applications or solicitations used by the
creditor which contain the required disclosures on one or more of the
model forms in Appendix G of Federal Reserve Board Regulation Z.
The annual filing fee for each creditor is twenty dollars, payable at the
time the disclosures are filed regardless of the number of filings;
and
(b) file with the Department of Consumer Affairs
current figures on the disclosures required by paragraph (a) within thirty
days after receiving a written request for this information from the
administrator. No filing fee may be imposed for this information
request.
(2) Failure to file the disclosures required by this
section and any errors in these disclosures does not affect the validity of
any transaction or the maximum rates or charges in any transaction made
by the creditor but the creditor is subject to the administrative remedies
in Part 1 of Chapter 6."
SECTION 15. Section 37-3-510 of the 1976 Code is amended to read:
"Section 37-3-510. (1) With respect to a supervised
loan in which the principal is one thousand dollars or less, a lender may
not contract for an interest in land as security. A security interest taken
in violation of this section is void.
(2) An open-end credit agreement under which the
credit limit is a minimum of five thousand dollars is exempt from this
section even though one or more advances made pursuant to the
agreement are less than one thousand dollars."
SECTION 16. (A) Section 37-4-203(5) of the 1976 Code is
amended to read:
"(5) Credit life insurance premiums for each one hundred
dollars of indebtedness are considered reasonable and may be charged
if they are not greater than the amounts given in the following table
times the number of years, or fraction of a year, that the indebtedness is
scheduled to continue, subject to a minimum charge of two dollars:
Decreasing
Balance
Level
Balance
Individual
$ .85
.75
$1.70
1.50
Joint Insurance
$1.42
1.25
$2.84
2.50"
(B) The last paragraph of Section 34-29-160 of the 1976 Code is
amended to read:
"Credit life insurance premiums for each one hundred dollars
of indebtedness are considered reasonable and may be charged if they
are not greater than the amounts given in the following table times the
number of years, or fraction of a year, that the indebtedness is scheduled
to continue, subject to a minimum charge of two dollars:
Decreasing
Balance
Level
Balance
Individual
$ .85
.75
$1.70
1.50
Joint Insurance
$1.42
1.25
$2.84
2.50"
SECTION 17. 1(A) Section 37-6-108(6) of the 1976 Code is
amended to read:
"(6) With respect to unconscionable agreements or
fraudulent or unconscionable conduct by the respondent, the
Administrator may not issue an order pursuant to this section but may
bring a civil action for an injunction (Section 37-6-111). For
purposes of this section and Sections 37-6-117 and 37-6-118, a violation
of the South Carolina Unfair Trade Practices Act which arises out of the
production, promotion, or sale of consumer goods, services, or interests
in land is deemed to be a violation of this title subject to action by the
administrator."
(B) Section 37-6-108 of the 1976 Code is amended by
adding:
"(7) Unless otherwise specifically provided by law, the
following administrative penalties may, in the discretion of the
administrator, may be levied against persons found to have engaged in
violations of this title pursuant to subsection (1) of this section:
(a) If the violator is found to have violated repeatedly and
intentionally any provision of this title, the violator must be fined in an
amount not to exceed two thousand five hundred dollars and not to
exceed ten thousand dollars for any transaction or occurrence or set of
transactions or occurrences which violated multiple provisions of this
title.
(b) If the violator is shown to have violated any previous lawful
order of the administrator or court of competent jurisdiction, the
violator, in the discretion of the administrator may be fined in an amount
not to exceed five thousand dollars for each violation.
(c) The penalties in items (a) and (b) of this subsection are in
addition to any other penalties provided by law or any other remedies
provided by law.
(8) The administrator may make findings and issue cease and desist
orders regarding unconscionable conduct or unconscionable debt
collection pursuant to this section, but he may not award damage, treble
damage, or attorney's fee remedies to affected customers in these
hearings."
SECTION 18. Section 37-6-113(2) of the 1976 Code is amended to
read:
"(2) The administrator may bring a civil action against a
creditor or a person acting in his behalf to recover a civil penalty of no
more than five thousand dollars for repeatedly and intentionally
violating this title. A civil penalty pursuant to this subsection may not be
imposed for a violation of this title occurring more than two years before
the action is brought or for making unconscionable agreements or
engaging in a course of fraudulent or unconscionable
conduct."
SECTION 19. Section 37-6-114 of the 1976 Code is repealed.
SECTION 20. Section 37-6-117(d) of the 1976 Code is amended to
read:
"(d) Cooperate with and assist the South Carolina and
United States Attorney General and all state and local agencies
performing consumer protection functions in carrying out their legal
enforcement responsibilities for the protection of consumers;".
SECTION 21. Section 37-6-117(i) of the 1976 Code is amended to
read:
"(i) With the approval of the Commission on Consumer
Affairs, bring an individual action for a consumer who might have a
cause of action for damages resulting from the use of or employment by
another person of an unfair or deceptive method, act, or practice, as
provided in Section 39-5-140, when he deems considers
such action is necessary to protect the consumer's interest, the actual
damages sought are three two thousand five hundred
dollars or less, and either the individual has written evidence that two
attorneys licensed to practice law in the this State of
South Carolina have reviewed the case and have declined to
represent the individual in pursuing the cause of action, or an attorney
licensed to practice law in the this State of South
Carolina has, after reviewing the facts of the case, in writing
has requested that the administrator bring an action on behalf
of the consumer under this section.
The provisions of this section subsection
shall do not apply if consumer-industry appeals,
arbitration or mediation panels or boards, whose decisions are binding
on the participating business, are available in South Carolina
this State for the product of or service
concerned, provided such business complies with the decision of the
panel or board."
SECTION 22. Section 37-6-203 of the 1976 Code is amended to read:
"Section 37-6-203. A person required to file notification shall
pay on or before January thirty-first of each year pay to
the administrator an annual fee of ninety dollars for that year, for each
address in this State listed in the notification; provided, that the fee for
any one person must be not less than ninety dollars; provided, further,
that a person who does not extend credit pursuant to written contracts
and a person whose annual gross volume of business does not exceed
one hundred fifty thousand dollars is exempt from any fee and from the
notification requirements of Section 37-6-202. A person engaged in
making consumer credit sales or consumer leases who is also engaged
in making consumer rental-purchase agreements is only required to pay
one ninety dollar fee for each location."
SECTION 23. Section 37-10-102(c) of the 1976 Code is deleted.
SECTION 24. The 1976 Code is amended by adding:
"Section 37-10-107. (1) No person may maintain an action for
legal or equitable relief or a defense based upon a failure to perform an
alleged promise, undertaking, accepted offer, commitment, or
agreement:
(a) to lend or borrow money;
(b) to defer or forbear in the repayment of money; or
(c) to renew, modify, amend, or cancel a loan of money or any
provision with respect to a loan of money, involving in any such case a
principal amount in excess of fifty thousand dollars, unless the party
seeking to maintain the action or defense has received a writing from the
party to be charged containing the material terms and conditions of the
promise, undertaking, accepted offer, commitment, or agreement and the
party to be charged, or its duly authorized agent, has signed the writing.
(2) Failure to comply with subsection (1) precludes an action or
defense based on any of the following legal or equitable theories:
(a) an implied agreement based on course of dealing or
performance or on a fiduciary relationship;
(b) promissory or equitable estoppel;
(c) part performance, except to the extent that the part
performance may be explained only by reference to the alleged promise,
undertaking, accepted offer, commitment, or agreement; or
(d) negligent misrepresentation.
(3) Subsections (1) and (2) do not apply to:
(a) a loan of money used primarily for personal, family, or
household purposes;
(b) an agreement or change in the terms of an agreement relating
to a line of consumer credit, lender credit card or similar arrangement;
(c) an overdraft on a demand deposit or other bank account; or
(d) promissory notes, real estate mortgages, security agreements,
guaranty and surety agreements and letters of credit.
(4) In the event of a conflict between this section and any other
provision of law of this State relating to the requirement of a signed
writing, the provisions of the other provision of law shall control."
SECTION 25. Section 39-61-100 of the 1976 Code is amended to read:
"Section 39-61-100. (1) The administrator may order
the club to cease and desist, or may revoke, suspend, or refuse to
continue the certificate of authority of a club, whenever, after a hearing
and for cause shown, he determines that the club:
(a) has violated or failed to comply with any provisions of this
chapter or regulations promulgated under authority of this chapter;
(b) has obtained a certificate of authority through wilful
misrepresentation or fraud;
(c) has engaged in fraudulent or deceptive practices;
(d) has wilfully, orally or in writing, misrepresented the terms,
benefits, privileges, and provisions of any service contract issued or to
be issued by it or any other club;
(e) is unable to meet its obligations as determined by generally
accepted accounting principles;
(f) has, after notice to the club of an alleged occurrence of any
of items (a) through (e) of this section, refused without just cause to
submit relevant information to the administrator with respect to the
motor club services within this State.
(2) In lieu of revocation, suspension, or refusal to
continue a certificate of authority for a violation or violations of items
(a) through (f) of subsection (1) of this section, the administrator in his
discretion may assess an administrative penalty of not less than one
hundred nor more than one thousand dollars for each violation. No
accumulation of these penalties may exceed five thousand dollars for
matters commenced in any calendar year. These penalties may be
assessed in connection with orders to cease and desist."
SECTION 26. Section 40-39-150 of the 1976 Code, as added by Act
491 of 1988, is amended to read:
"Section 40-39-150. (A) Upon the finding that an action
of a pawnbroker is in violation of this chapter, or of a law or regulation
of this State or of the federal government or an agency of the state or
federal government, the administrator, after reasonable notice to the
pawnbroker and an opportunity for the pawnbroker to be heard, shall
order the pawnbroker to cease and desist from the action.
(B) The Administrator of the Department of Consumer
Affairs may impose also administrative fines of up to seven
hundred fifty dollars for each offense upon persons violating any of the
provisions of this chapter up to a maximum of fifteen thousand dollars
for the same set of transactions or occurrences. Each violation
constitutes a separate offense. In addition, any person violating the
provisions of Sections 40-39-20 and 40-39-30 is guilty of a
misdemeanor and, upon conviction, must be punished by a fine not
exceeding one thousand dollars or by imprisonment for a term not
exceeding sixty days, or both. The administrator may revoke
or suspend a pawnbroker's certificate of authority in addition to the
penalties enumerated in this section."
SECTION 27. Section 44-79-80(5) of the 1976 Code is amended to
read:
"(5) No certificate of authority may be issued by the
administrator until the center pays an initial certificate of authority fee
of twenty-five fifty dollars an outlet. Certificates of
authority may be renewed upon payment of an annual renewal fee of
fifty dollars an outlet on or before December thirty-first."
SECTION 28. (A) Section 44-79-80(8) of the 1976 Code is amended to
read:
"(8) The administrator may order the center to cease and
desist, or may revoke, suspend, or refuse to continue the certificate of
authority of a center, whenever, after a hearing and for causes shown, he
determines that the center has violated or failed to comply with any
provisions of this chapter or regulations promulgated under the authority
of this chapter., or if after notice and opportunity for a
hearing, it is shown that:
(a) any document or declaration required by
subsection (4), items (a) through (g) were false or misleading; or
(b) by clear and convincing evidence the center or
its agents, officers, or employees have engaged in false, fraudulent, or
deceptive conduct in its dealings with customers;".
(B) Section 44-79-80 of the 1976 Code is amended by adding:
"(9) In lieu of revocation, suspension, or refusal to continue a
certificate of authority of a center, the administrator in his discretion
may assess an administrative penalty for a violation of subsection (4) or
(8) of this section not to exceed five hundred dollars for each violation,
not to exceed five thousand dollars for matters commenced in any
calendar year. These penalties may be assessed in connection with
orders to cease and desist."
SECTION 29. This act takes effect July 1, 1991, except the individual
and joint insurance decreasing and level balance charges reduced in
Section 37-4-203(5) of the 1976 Code and the last paragraph of Section
34-29-160 of the 1976 Code as contained in SECTION 16, and the
provisions of Section 37-2-202(2)(b) of the 1976 Code as contained in
Section 3, and the provisions of Section 37-3-202(2)(b) of the 1976
Code as contained in Section 10 take effect January 1, 1993.
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