S*994 Session 112 (1997-1998)
S*0994(Rat #0420, Act #0433 of 1998) General Bill, By Short, Gregory and
Jackson
Similar(H 4359)
A BILL TO AMEND TITLE 34, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
BANKING, FINANCIAL INSTITUTIONS, AND MONEY, BY ADDING CHAPTER 39 SO AS TO
ENACT THE SOUTH CAROLINA DEFERRED PRESENTMENT SERVICES ACT, PROVIDING FOR
LICENSING AND REGULATION OF PERSONS OFFERING DEFERRED PRESENTMENT SERVICES; BY
ADDING CHAPTER 41 SO AS TO DEFINE A LEVEL 1 AND LEVEL II CHECK-CASHING SERVICE
AND TO PROVIDE FOR LICENSING AND REGULATING BY THE STATE BOARD OF FINANCIAL
INSTITUTIONS OF CHECK-CASHING SERVICES; AND BY AMENDING SECTION 34-29-100,
RELATING TO BOOKS AND RECORDS IN CONSUMER FINANCE TRANSACTIONS, SO AS TO ALLOW
RETENTION OF RECORDS IN ANY CONFORMING MEDIUM.-AMENDED TITLE
02/05/98 Senate Introduced and read first time SJ-8
02/05/98 Senate Referred to Committee on Banking and Insurance SJ-8
03/19/98 Senate Committee report: Favorable with amendment
Banking and Insurance SJ-11
04/01/98 Senate Amended SJ-18
04/01/98 Senate Read second time SJ-18
04/01/98 Senate Ordered to third reading with notice of
amendments SJ-18
04/02/98 Senate Read third time and sent to House SJ-33
04/07/98 House Introduced and read first time HJ-393
04/07/98 House Referred to Committee on Labor, Commerce and
Industry HJ-393
05/14/98 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-34
05/20/98 House Amended HJ-98
05/20/98 House Read second time HJ-110
05/21/98 House Read third time and returned to Senate with
amendments HJ-9
05/27/98 Senate Concurred in House amendment and enrolled SJ-39
06/04/98 Ratified R 420
06/11/98 Became law without Governor's signature
06/11/98 Effective date 06/11/98
07/13/98 Copies available
08/05/98 Act No. 433
(A433, R420, S994)
AN ACT TO AMEND TITLE 34, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO BANKING, FINANCIAL
INSTITUTIONS, AND MONEY, BY ADDING CHAPTER 39 SO AS
TO ENACT THE SOUTH CAROLINA DEFERRED PRESENTMENT
SERVICES ACT, PROVIDING FOR LICENSING AND REGULATION
BY THE STATE BOARD OF FINANCIAL INSTITUTIONS OF
PERSONS OFFERING DEFERRED PRESENTMENT SERVICES; BY
ADDING CHAPTER 41 SO AS TO DEFINE A LEVEL I AND LEVEL
II CHECK-CASHING SERVICE AND TO PROVIDE FOR LICENSING
AND REGULATING BY THE STATE BOARD OF FINANCIAL
INSTITUTIONS OF CHECK-CASHING SERVICES; AND BY
AMENDING SECTION 34-29-100, RELATING TO BOOKS AND
RECORDS IN CONSUMER FINANCE TRANSACTIONS, SO AS TO
ALLOW RETENTION OF RECORDS IN ANY CONFORMING
MEDIUM.
Be it enacted by the General Assembly of the State of South Carolina:
Deferred presentment services
SECTION 1. Title 34 of the 1976 Code is amended by adding:
"CHAPTER 39
Deferred Presentment Services
Section 34-39-110. This chapter may be cited as the 'South
Carolina Deferred Presentment Services Act'.
Section 34-39-120. As used in this chapter, unless the context
clearly requires otherwise, the term:
(1) 'Board' means the State Board of Financial Institutions.
(2) 'Check' means a check signed by the maker and made payable
to a person licensed pursuant to this chapter. The name of the maker must
be preprinted on the face of the check. 'Counter checks' and checks
without the name of the maker preprinted on the face of the check may
not be accepted by a licensee.
(3) 'Deferred presentment services' means a transaction pursuant to
a written agreement involving the following combination of activities in
exchange for a fee:
(a) accepting a check dated on the date it was written; and
(b) holding the check for a period of time before presentment for
payment or deposit.
(4) 'Licensee' means a person licensed to provide deferred
presentment services pursuant to this chapter.
(5) 'Person' means an individual, group of individuals, partnership,
association, corporation, or other business unit or legal entity.
(6) 'Location' means the entire space in which deferred presentment
services are provided. The space must be completely separated from any
space where goods or services are sold or leased. The location must be
separately staffed and must not have a common entrance with any other
business not permitted by this chapter.
Section 34-39-130. (A) A person may not engage in the business
of deferred presentment services without first obtaining a license pursuant
to this chapter. A separate license is required for each location from
which the business is conducted. The licensee shall post its license to
engage in the business of deferred presentment services at each location
licensed pursuant to this chapter.
(B) A person engaged in the business of deferred presentment
services on the effective date of this chapter may continue to engage in the
business without a license until the board has acted upon the application
for a license, but the application must be filed within sixty days after the
effective date of this chapter.
Section 34-39-140. This chapter does not apply to:
(1) a bank, savings institution, credit union, or farm credit system
organized under the laws of the United States or any state; and
(2) a person principally engaged in the bona fide retail sale of goods
or services who, either as an incident to or independently of a retail sale
or service and not holding itself out to be a deferred presentment service,
from time to time cashes checks, drafts, or money orders without a fee or
other consideration.
Section 34-39-150. (A) An application for licensure pursuant to
this chapter must be in writing, under oath, and on a form prescribed by
the board. The application must set forth all of the following:
(1) the legal name and residence and business addresses of the
applicant and, if the applicant is a partnership, association, or corporation,
of every member, officer, managing employee, and director of it;
(2) the location of the registered office of the applicant;
(3) the registered agent of the applicant if the applicant is
required by other law to have a registered agent;
(4) the addresses of the locations to be licensed; and
(5) other information concerning the financial responsibility,
background experience, and activities, such as other partnerships,
associations, and corporations located at or adjacent to the licensed
location of the applicant and its members, officers, managing employees,
and directors as the board requires.
(B) Upon receipt of an application in the form prescribed by the
board, accompanied by the required fee, the board shall investigate
whether the qualifications for licensure are satisfied. If the board finds
that the qualifications are satisfied, it shall issue to the applicant a license
to engage in the deferred presentment services business. If the board fails
to issue a license, it shall notify the applicant of the denial and the reasons
for it. The provisions of the Administrative Procedures Act apply to the
appeal of the denial of a license.
(C) The application must be accompanied by payment of an
application fee of two hundred fifty dollars and an investigation fee of
five hundred dollars. These fees are not refundable or abatable. If the
license is granted, however, payment of the application fee satisfies the
fee requirement for the first license year or its remainder.
(D) A license expires annually and may be renewed upon payment
of a license fee of two hundred fifty dollars. The annual license renewal
fee for an applicant with more than one location is two hundred fifty
dollars for the first location and fifty dollars for each additional location.
Section 34-39-160. To qualify for a license issued pursuant to this
chapter, an applicant shall have:
(1) a minimum net worth, determined in accordance with generally
accepted accounting principles, of at least twenty-five thousand dollars
available for the operation of each location; and
(2) the financial responsibility, character, experience, and general
fitness so as to command the confidence of the public and to warrant
belief that the business is operated lawfully, honestly, fairly, and
efficiently.
Section 34-39-170. (A) A licensee may not advance monies on the
security of a check unless the account on which the presented check is
drawn is a legitimate, open, and active account.
(B) A licensee, in every location conducting business under a
license issued pursuant to this chapter, conspicuously shall post and at all
times display a notice stating the fee charged for deferred presentment
services. A licensee shall file with the board a statement of the fees
charged at every location licensed for deferred presentment services.
(C) A licensee shall endorse in the name of the licensee every check,
draft, or money order presented by the licensee for payment or deposit.
Section 34-39-180. (A) A licensee may defer the presentment or
deposit of a check for up to thirty-one days pursuant to the provisions of
this section.
(B) The face amount of a check taken for deferred presentment or
deposit may not exceed three hundred dollars, exclusive of the fees
allowed in Section 34-39-180(E).
(C) Each check must be documented by a written agreement signed
by both the customer and the licensee. The written agreement must
contain the name or trade name of the licensee, the transaction date, the
amount of the check, and a statement of the total amount of fees charged,
expressed both as a dollar amount and as an effective annual percentage
rate (APR). The written agreement must authorize expressly the licensee
to defer presentment or deposit of the check until a specific date, not later
than thirty-one days from the date the check is accepted by the licensee.
(D) The board shall require each licensee to issue a standardized
consumer notification and disclosure form in compliance with state and
federal truth-in-lending laws before entering into a deferred presentment
agreement.
(E) A licensee shall not charge, directly or indirectly, a fee or other
consideration in excess of fifteen percent of the face amount of the check
for accepting a check for deferred presentment or deposit. The fee or
other consideration authorized by this subsection may be imposed only
once for each written agreement. Records must be kept by each licensee
with sufficient detail to ensure that the fee or other consideration
authorized by this subsection may be imposed only once for each written
agreement.
(F) A check accepted for deferred presentment or deposit pursuant
to this chapter may not be repaid from the proceeds of another check
accepted for deferred presentment or deposit by the same licensee or an
affiliate of the licensee. A licensee shall not renew or otherwise extend
presentment of a check or withhold the check from deposit, for old or new
consideration, for a period beyond the time set forth in the written
agreement with the customer.
(G) If a check is returned to the licensee from a payer financial
institution due to insufficient funds, closed account, or stop payment
order, the licensee may pursue all legally available civil means to collect
the check including, but not limited to, the imposition of a returned check
charge as provided in Section 34-11-70(a), except that the service charge
imposed by the licensee shall not exceed the lesser of ten dollars or the fee
imposed by the financial institution on the licensee for the returned check.
An individual who issues a personal check to a licensee under a deferred
presentment agreement is not subject to criminal penalty.
Section 34-39-190. (A) A person subject to the provisions of this
chapter shall maintain in its offices books, accounts, and records, as the
board may reasonably require and establish by regulation. The books,
accounts, and records must be kept with sufficient detail to ensure that the
provisions of Section 34-39-180(E) are met. The books, accounts, and
records must be maintained separately from other business in which the
person is engaged and must be retained for at least three years.
(B) The board may examine the books, accounts, and records to
determine compliance with this chapter and with the regulations adopted
pursuant to it. The licensee examined pursuant to this section must pay
the cost of the examination to the board.
Section 34-39-200. A person required to be licensed pursuant to
this chapter may not:
(1) charge fees in excess of those authorized by this chapter;
(2) engage in the business of:
(i) making loans of money or extension of credit;
(ii) discounting notes, bills of exchange, items, or other evidences
of debt; or
(iii) accepting deposits or bailments of money or items, except as
expressly provided by Section 34-39-180;
(3) use or cause to be published or disseminated advertising
communication which contains false, misleading, or deceptive statements
or representations;
(4) conduct business at premises or locations other than locations
licensed by the board;
(5) engage in unfair, deceptive, or fraudulent practices, including
unconscionable conduct in violation of Section 37-5-108;
(6) alter or delete the date on a check accepted by the licensee;
(7) accept an undated check or a check dated on a date other than
the date on which the licensee accepts the check;
(8) require a customer to provide security for the transaction or
require the customer to provide a guaranty from another person;
(9) engage in the retail sale of goods or services, other than deferred
presentment services and Level I check-cashing services as defined in
Section 34-41-10, at the location licensed pursuant to this chapter,
provided, however, that a sale of money orders, postage stamps, payment
of utility bills with no additional fee to the customer, vending machines
for food or beverage, facsimile services, Western Union services, or postal
boxes at rates not higher than allowed by the United States Postal Service
is not the sale of goods or services prohibited by this subsection;
(10) be licensed pursuant to Section 12-21-2720(a)(3) to operate a
video poker machine; or
(11) permit others to engage in an activity prohibited by this section
at a location licensed pursuant to this chapter.
Section 34-39-210. (A) The board may suspend or revoke a
license issued pursuant to this chapter if, after notice and opportunity for
hearing, the board issues written findings that the licensee has:
(1) violated this chapter or applicable state or federal law;
(2) made a false statement on the application for a license under
the chapter;
(3) refused to permit investigation by the board as authorized by
this chapter;
(4) failed to comply with an order of the board;
(5) demonstrated incompetency or untrustworthiness to engage
in the business of deferred presentment services; or
(6) been convicted of a felony or misdemeanor involving fraud,
misrepresentation, or deceit.
(B) The board may not suspend or revoke a license issued pursuant
to this chapter unless the licensee has been given notice and opportunity
for hearing in accordance with the Administrative Procedures Act.
Section 34-39-220. If the board determines that a person subject
to the provisions of this chapter has violated this chapter or regulations
adopted pursuant to it, the board, upon notice and opportunity for hearing
in accordance with the Administrative Procedures Act, may order the
person to cease and desist from the violations and to comply with this
chapter. The board may designate a hearing officer or hearing panel to
conduct hearings or take other action as necessary pursuant to this section
and may seek the assistance of the Attorney General or the Department of
Consumer Affairs in enforcing compliance with this chapter. The board
may enforce compliance with an order issued pursuant to this section by
the imposition and collection of civil penalties authorized in this chapter.
Section 34-39-230. The board may order and impose civil
penalties upon a person subject to the provisions of this chapter for
violations of this chapter or its regulations in an amount not to exceed one
thousand dollars for each violation. The board also may order repayment
of unlawful or excessive fees charged to customers.
Section 34-39-240. The board, upon a determination that a
violation of Section 34-39-130 is wilful, may refer the violation to the
Attorney General or to the appropriate circuit solicitor for criminal
prosecution. A wilful violation of Section 34-39-130 is a Class B
misdemeanor, and each transaction involving unlawful deferred
presentment constitutes a separate offense.
Section 34-39-250. The business of deferred presentment services
conducted in accordance with this chapter is not subject to or controlled
by any other state statute governing the imposition of interest, fees, or
loan charges, or the extension of credit.
Section 34-39-260. The board may promulgate regulations
pursuant to the Administrative Procedures Act necessary to carry out the
purposes of this chapter, to provide for the protection of the public, and
to assist licensees in interpreting and complying with this chapter."
Check-cashing services
SECTION 2. Title 34 of the 1976 Code is amended by adding:
"CHAPTER 41
Check-Cashing Services
Section 34-41-10. As used in this chapter, unless the context clearly
requires otherwise, the term:
(1) 'Board' means the State Board of Financial Institutions.
(2) 'Cashing' means providing currency for payment instruments but
does not include the bona fide sale or exchange of travelers checks and
foreign denomination payment instruments.
(3) 'Level I check-cashing service' means any person or entity
engaged in the business of cashing checks, drafts, or money orders for a
fee, service charge, or other consideration.
(4) 'Level II check-cashing service' means any person or entity
engaged in the business of cashing checks, drafts, or money orders for a
fee, service charge, or other consideration. A Level II licensee may not
be licensed to engaged in the business of deferred presentment.
(5) 'Licensee' means a person or entity licensed to engage in either
a Level I or Level II check-cashing service pursuant to this chapter.
(6) 'Person' means an individual, partnership, association, or
corporation.
Section 34-41-20. (A) No person or other entity may engage in the
business of either Level I or Level II check-cashing service without first
obtaining a license pursuant to this chapter. No person or other entity
providing a Level I or Level II check-cashing service may avoid the
requirements of this chapter by providing a check or other currency
equivalent instead of currency when cashing payment instruments.
(B) A person providing Level I or Level II check-cashing service on
the effective date of this chapter may continue to engage in the business
without a license until the board has acted upon the application for a
license, but the application must be filed within sixty days after the
effective date of this chapter.
Section 34-41-30. This chapter shall not apply to:
(1) a bank, savings institution, credit union, or farm credit system
organized under the laws of the United States or any state; and
(2) any person or entity principally engaged in the bona fide retail
sale of goods or services, who either as an incident to or independently of
a retail sale or service and not holding itself out to be a Level I or Level
II check-cashing service, from time to time cashes checks, drafts, or
money orders without a fee or other consideration.
Section 34-41-40. (A) An application for licensure pursuant to this
chapter must be in writing, under oath, and on a form prescribed by the
board. The application shall set forth all of the following:
(1) the name and address of the applicant;
(2) if the applicant is a firm or partnership, the name and address
of each member of the firm or partnership;
(3) if the applicant is a corporation, the name and address of each
officer, director, registered agent, and principal;
(4) the addresses of the locations of the business to be licensed;
and
(5) other information concerning the financial responsibility,
background experience, and activities, such as other partnerships,
associations, and corporations located at or adjacent to the licensed
location, of the applicant and its members, officers, directors, and
principals as the board requires.
(B) The board may make such investigations as the board considers
necessary to determine if the applicant has complied with all applicable
provisions of this chapter and state and federal law.
(C) The application must be accompanied by payment of a two
hundred fifty dollar application fee and a five hundred dollar investigation
fee. These fees are not refundable or abatable, but, if the license is
granted, payment of the application fee shall satisfy the fee requirement
for the first license year or remaining part of it.
(D) Licenses shall expire annually and may be renewed upon
payment of a license fee of two hundred fifty dollars plus a fifty dollar fee
for each branch location certificate issued under a license.
Section 34-41-42. For the purposes of this chapter, all mobile
check-cashing services must:
(1) be licensed as a Level I licensee;
(2) be a registered and licensed armored vehicle in accordance with
the laws of this State;
(3) be considered a 'branch' of a check-cashing business for
purposes of licensure through this chapter; and
(4) keep records in accordance with this chapter that are returned
daily to either the main office or another nonmobile branch of the
business.
Section 34-41-50. (A) Each licensee and applicant shall have and
maintain liquid assets of at least fifty thousand dollars for each licensee.
(B) Upon the filing and investigation of an application, and
compliance by the applicant with Section 34-41-40, and this section, the
board shall issue and deliver to the applicant the license applied for to
engage in business pursuant to this chapter at the locations specified in the
application, provided that the board finds that the financial responsibility,
character, reputation, experience, and general fitness of the applicant and
its members, officers, directors, and principals are such as to warrant
belief that the business will be operated efficiently and fairly, in the public
interest, and in accordance with law. If the board fails to make these
findings, a license may not be issued, and the board shall notify the
applicant of the denial and the reasons for it. The provisions of the
Administrative Procedures Act apply to the appeal of the denial of a
license.
Section 34-41-60. (A) Notwithstanding any other provision of law,
a check-cashing service licensed pursuant to this chapter may not directly
or indirectly charge or collect fees or other consideration for
check-cashing services in excess of the following:
(1) two percent of the face amount of the check or three dollars,
whichever is greater, for checks issued by the federal government, state
government, or any agency of the state or federal government, or any
county or municipality of this State;
(2) two percent of the face amount of the check or three dollars,
whichever is greater, for printed payroll checks. For purposes of this
item, 'printed' means type written, electronically generated, or computer
generated; and
(3) seven percent of the face amount of the check or five dollars,
whichever is greater, for all other checks, including handwritten payroll
checks, or for money orders.
(B) A licensee may not advance monies on the security of any check
unless the account from which the check being presented is drawn is
legitimate, open, and active. A licensee who cashes a check for a fee shall
deposit the check not later than five days from the date the check is
cashed.
(C) A licensee shall ensure that in every location conducting
business under a license issued pursuant to this chapter, there is posted
conspicuously and at all times displayed a notice stating the fees charged
for cashing checks, drafts, and money orders. A licensee further shall
ensure that notice of the fees currently charged at every location is filed
with the board.
(D) A licensee shall endorse every check, draft, or money order
presented by the licensee for payment in the name of the licensee.
(E) Each check must be documented by a written agreement signed
by both the customer and the licensee. In the case of an automated
check-cashing machine, a printed receipt of the transaction between the
customer and the licensee shall constitute an agreement. The written
agreement must contain the name or trade name of the licensee, the
transaction date, the amount of the check, and a statement of the total
amount of fees charged.
Section 34-41-70. (A) Each person required to be licensed pursuant
to this chapter shall maintain in its offices such books, accounts, and
records as the board reasonably may require. The books, accounts, and
records must be maintained separate from any other business in which the
person is engaged and must be retained for a period prescribed by the
board.
(B) The licensee shall ensure that each customer cashing a check is
provided a receipt showing the name or trade name of the licensee, the
transaction date, amount of the check, and the fee charged.
(C) The board may examine the books, accounts, and records in
order to determine whether the person is complying with this chapter and
rules adopted pursuant to it. The cost of the examination must be paid by
the licensee and must be determined by the board.
Section 34-41-80. No person required to be licensed pursuant to this
chapter shall do any of the following:
(1) charge fees in excess of those authorized pursuant to this
chapter;
(2) engage in the business of:
(i) making loans of money or extension of credit;
(ii) discounting notes, bills of exchange, items, or other evidences
of debt; or
(iii) accepting deposits or bailments of money or items;
(3) use or cause to be published or disseminated any advertising
communication which contains any false, misleading, or deceptive
statement or representation;
(4) conduct business at premises or locations other than locations
licensed by the board;
(5) engage in unfair, deceptive, or fraudulent practices, including
unconscionable conduct in violation of Section 37-5-108;
(6) cash a check, draft, or money order made payable to a payee
other than a natural person unless the licensee has previously obtained
appropriate documentation from the executive entity of the payee clearly
indicating the authority of the natural person or persons cashing the check,
draft, or money order on behalf of the payee;
(7) as a Level I licensee, engage in the retail sale of goods or
services, other than check-cashing services and deferred presentment
services, at the location licensed pursuant to this chapter, provided,
however, that a sale of money orders, postage stamps, payment of utility
bills with no additional fee to the customer, vending machines for food or
beverage, facsimile services, Western Union services, or postal boxes at
rates not higher than allowed by the United States Postal Service is not the
sale of goods or services prohibited by this subsection;
(8) as a Level II licensee, engage in the business of deferred
presentment as provided in Chapter 39 of Title 34;
(9) be licensed pursuant to Section 12-21-2720(a)(3) to operate a
video poker machine; or
(10) permit others to engage in an activity prohibited by this section
at a location licensed pursuant to this chapter.
Section 34-41-90. (A) The board may suspend or revoke any
license or licenses issued pursuant to this chapter if, after notice and
opportunity for hearing, the board issues written findings that the licensee
has engaged in any of the following conduct:
(1) violated this chapter or applicable state or federal law or
rules;
(2) made a false statement on the application for a license
pursuant to this chapter;
(3) refused to permit investigation by the board authorized
pursuant to this chapter;
(4) failed to comply with an order of the board;
(5) demonstrated incompetency or untrustworthiness to engage
in the business of check cashing; or
(6) has been convicted of a felony or misdemeanor involving
fraud, misrepresentation, or deceit.
(B) The board may not suspend or revoke any license issued
pursuant to this chapter unless the licensee has been given notice and
opportunity for hearing in accordance with the Administrative Procedures
Act.
Section 34-41-100. If the board determines that a person required
to be licensed pursuant to this chapter has violated this chapter or
regulations promulgated pursuant to this chapter, the board, upon notice
and opportunity for hearing in accordance with the Administrative
Procedures Act, may order the person to cease and desist from the
violations and to comply with this chapter. The board may designate a
hearing officer or hearing panel to conduct hearings or take other action
as necessary pursuant to this section and may seek the assistance of the
Attorney General or the Department of Consumer Affairs in enforcing
compliance with this chapter. The board may enforce compliance with an
order issued pursuant to this section by the imposition and collection of
civil penalties authorized pursuant to this chapter.
Section 34-41-110. The board may order and impose civil
penalties upon any person required to be licensed pursuant to this chapter
for violations of this chapter or regulations promulgated under it. Civil
penalties shall not exceed one thousand dollars for each violation. The
board also may order repayment of unlawful or excessive fees charged to
customers.
Section 34-41-120. The board, upon a determination that a
violation of Section 34-41-20 is wilful, may refer a violation to the
Attorney General or to the appropriate circuit solicitor for criminal
prosecution. A violation of Section 34-41-20 by a person required to
obtain a license pursuant to this chapter is a Class B misdemeanor and
each transaction involving the unlawful cashing of a check, draft, or
money order constitutes a separate offense.
Section 34-41-130. The board may promulgate regulations
necessary to carry out the purposes of this chapter, to provide for the
protection of the public, and to assist licensees in interpreting and
complying with this chapter."
Severability clause
SECTION 3. If any provision of these chapters or its application
to any person or circumstance is held invalid, the invalidity does not
affect other provisions or application of these chapters which can be given
effect without the invalid provision or application, and to that end, the
provisions of these chapters are declared to be severable.
Retention of records
SECTION 4. Section 34-29-100(a) of the 1976 Code, as last
amended by Act 135 of 1995, is further amended to read:
"(a) Each licensee shall keep and use in his business such full
and correct books and accounting records as are in accordance with sound
and accepted accounting principles and practices and such books and
records, including cards used in the card system, if any, as are in accord
with the rules and regulations lawfully made by the board. Each licensee
shall preserve such books, accounts, and records, including cards used in
the card system, if any, for at least two years after making the final entry
on any loan recorded in them. The renewal or refinancing of a loan shall
constitute a final entry. Notwithstanding any other provision of law or
regulation, each licensee, subject to the approval of the Director of the
Consumer Finance Division of the South Carolina Board of Financial
Institutions, may retain books and records in any other medium, electronic
or otherwise, that conforms with the requirements of these
chapters."
Time effective
SECTION 5. This act takes effect upon approval by the
Governor.
Became law without the signature of the Governor -- 06/11/98.
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