S*491 Session 106 (1985-1986)
S*0491(Rat #0194, Act #0128 of 1985) General Bill, By
Senate Banking and Insurance
A Bill to amend Section 27-17-310, as amended, Code of Laws of South Carolina,
1976, relating to bank service charges, so as to extend the provisions to
building and loan associations, savings and loan associations, and savings
banks, to amend Section 34-1-70, relating to approval of charters of banks and
building and loan associations, so as to include savings and loan associations
and savings banks and their branches in the Section and to provide that the
Section does not extend to remote service units, to amend Section 34-3-380,
relating to banks' reports of condition to the State Board of Financial
Institutions, so as to permit banks to file in lieu of the report their
federal deposit insurance corporation call report, to amend Section 34-3-540,
relating to microphotographing records of banks and other depository
institutions, so as to permit records to be copied by photostatic,
photographic, or microfilming processes and the reproductions considered as
originals, to amend Section 34-11-10, relating to payment of bank deposits
made in the name of two persons or the survivor of them, so as to include
under the Section deposits in the name of more than two persons and to permit
accounts in the name of two or more persons to be pledged validly to a bank
unless the account specifically prohibits it, to amend Section 34-11-20,
relating to bank deposits and payments of minors, so as to permit banks to act
in all matters with respect to minors' deposits, to amend Sections 34-11-40,
as amended, relating to the replacement of lost or destroyed certificates of
deposits, so as to allow the institution to determine if the holder must post
a bond to receive the replacement certificate, to amend 34-11-50, as amended,
relating to the replacement of lost or destroyed savings account books or
other certificates, so as to make grammatical changes, to amend the 1976 Code
by adding Section 34-11-130, so as to clarify the obligations of banking
institutions when custodian or trustee accounts are opened, and to repeal
Section 34-9-50 relating to capital and surplus required for banks.-amended
title
04/10/85 Senate Introduced, read first time, placed on calendar
without reference SJ-1436
04/11/85 Senate Read second time SJ-1469
04/11/85 Senate Ordered to third reading with notice of
amendments SJ-1469
04/16/85 Senate Amended SJ-1527
04/16/85 Senate Read third time and sent to House SJ-1527
04/16/85 House Introduced and read first time HJ-3506
04/16/85 House Referred to Committee on Labor, Commerce and
Industry HJ-3508
05/08/85 House Committee report: Favorable Labor, Commerce and
Industry HJ-2967
05/14/85 House Debate adjourned HJ-3157
05/16/85 House Debate adjourned until Tuesday, May 21, 1985 HJ-3255
05/21/85 House Read second time HJ-3309
05/22/85 House Read third time and enrolled HJ-3366
06/03/85 Ratified R 194
06/06/85 Signed By Governor
06/06/85 Effective date 06/06/85
06/06/85 Act No. 128
06/17/85 Copies available
(A128, R194, S491)
AN ACT TO AMEND SECTION 27-17-310, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO BANK SERVICE CHARGES, SO AS TO EXTEND THE PROVISIONS TO
BUILDING AND LOAN ASSOCIATIONS, SAVINGS AND LOAN ASSOCIATIONS, AND SAVINGS BANKS,
TO AMEND SECTION 34-1-70, RELATING TO APPROVAL OF CHARTERS OF BANKS AND BUILDING
AND LOAN ASSOCIATIONS, SO AS TO INCLUDE SAVINGS AND LOAN ASSOCIATIONS AND SAVINGS
BANKS AND THEIR BRANCHES IN THE SECTION AND TO PROVIDE THAT THE SECTION DOES NOT
EXTEND TO REMOTE SERVICE UNITS, TO AMEND SECTION 34-3-380, RELATING TO BANKS'
REPORTS OF CONDITION TO THE STATE BOARD OF FINANCIAL INSTITUTIONS, SO AS TO
PERMIT BANKS TO FILE IN LIEU OF THE REPORT THEIR FEDERAL DEPOSIT INSURANCE
CORPORATION CALL REPORT, TO AMEND SECTION 34-3-540, RELATING TO
MICROPHOTOGRAPHING RECORDS OF BANKS AND OTHER DEPOSITORY INSTITUTIONS, SO AS TO
PERMIT RECORDS TO BE COPIED BY PHOTOSTATIC, PHOTOGRAPHIC, OR MICROFILMING
PROCESSES AND THE REPRODUCTIONS CONSIDERED AS ORIGINALS, TO AMEND SECTION
34-11-10, RELATING TO PAYMENT OF BANK DEPOSITS MADE IN THE NAME OF TWO PERSONS
OR THE SURVIVOR OF THEM, SO AS TO INCLUDE UNDER THE SECTION DEPOSITS IN THE NAME
OF MORE THAN TWO PERSONS AND TO PERMIT ACCOUNTS IN THE NAME OF TWO OR MORE
PERSONS TO BE PLEDGED VALIDLY TO A BANK UNLESS THE ACCOUNT SPECIFICALLY PROHIBITS
IT, TO AMEND SECTION 34-11-20, RELATING TO BANK DEPOSITS AND PAYMENTS OF MINORS,
SO AS TO PERMIT BANKS TO ACT IN ALL MATTERS WITH RESPECT TO MINORS' DEPOSITS, TO
AMEND SECTION 34-11-40, AS AMENDED, RELATING TO THE REPLACEMENT OF LOST OR
DESTROYED CERTIFICATES OF DEPOSIT, SO AS TO ALLOW THE INSTITUTION TO DETERMINE
IF THE HOLDER MUST POST A BOND TO RECEIVE THE REPLACEMENT CERTIFICATE, TO AMEND
34-11-50, AS AMENDED, RELATING TO THE REPLACEMENT OF LOST OR DESTROYED SAVINGS
ACCOUNT BOOKS OR OTHER CERTIFICATES, SO AS TO MAKE GRAMMATICAL CHANGES, TO AMEND
THE 1976 CODE BY ADDING SECTION 34-11-130, SO AS TO CLARIFY THE OBLIGATIONS OF
BANKING INSTITUTIONS WHEN CUSTODIAN OR TRUSTEE ACCOUNTS ARE OPENED, AND TO REPEAL
SECTION 34-9-50 RELATING TO CAPITAL AND SURPLUS REQUIRED FOR BANKS.
Be it enacted by the General Assembly of the State of South Carolina:
Service charges
SECTION 1. Section 27-17-310 of the 1976 Code, as amended by Act 451 of 1982,
is further amended to read:
"Section 27-17-310. All service charges on accounts in banks, building and
loan associations, savings and loan associations, and savings banks must be
uniform within classes for all accounts, including those which are considered
inactive pursuant to this chapter. Service charges made on accounts which have
been determined to be inactive for a period of twelve months may not exceed the
lesser of the following: (1) one dollar monthly; or (2) amount which would be
charged if the account were not determined to be inactive for a period of twelve
months. These charges may not be placed against an account until notice of the
charges is acknowledged in writing by the account owner or the notice of the
charges is sent to the account owner at the address indicated on the bank's
records and at his last known address."
Application
SECTION 2. Section 34-1-70 of the 1976 Code is amended to read:
"Section 34-1-70. No bank, building and loan association, savings and loan
association, or savings bank may be granted a charter by the Secretary of State
unless and until the Board has approved the application in writing. No branch
bank, branch building and loan association, branch savings and loan association,
or branch savings bank may be established without the approval in writing of the
Board. Before any application for the incorporation of a bank, building and loan
association, savings and loan association, or savings bank, or the establishment
of a branch thereof, may be approved, the Board shall make an investigation to
determine whether or not the applicants have complied with all the provisions of
law, whether in the judgment of the Board, they are qualified to operate the
institution and whether the establishment of the bank, building and loan
association, savings and loan association, or savings bank or of a branch thereof
would serve the public interest, taking into consideration local circumstances
and conditions at the place where it proposes to do business. A remote service
unit as defined in Section 34-28-30 is not considered a branch of a bank,
building and loan association, savings and loan association, or a savings bank
and is not subject to any of the provisions of this section applicable to branch
applications."
Report of condition
SECTION 3. Section 34-3-380 of the 1976 Code is amended to read:
"Section 34-3-380. All institutions doing business in this State in lending
money and receiving deposits, under acts of incorporation granted by the State,
shall, under penalty of a forfeiture of their charters, publish when and as
called for by the State Board of Financial Institutions, without previous notice,
a correct report of the condition and business of the institution. The report
shall contain a statement under oath by the president or cashier of the
institution of the amount of the capital stock paid in, deposits, discounts,
property, and liabilities of the institution verified by three of the directors.
This section applies to all private banking institutions whether chartered or
not. The Board may accept in lieu of the report required by this section a
Federal Deposit Insurance Corporation call report."
Copying of records
SECTION 4. Section 34-3-540 of the 1976 Code is amended to read:
"Section 34-3-540. A bank, banking institution, or other depository
institution may cause any or all promissory notes and records kept by the
institution to be copied or reproduced by a photostatic, photographic, or
microfilming process which correctly and permanently copies, reproduces, or forms
a medium for copying or reproducing the original record on a film or other
durable material, and the institution may thereafter dispose of the original
record. The copy or reproduction is considered an original record for all
purposes and must be treated as an original record in all courts or
administrative agencies for the purpose of its admissibility in evidence. A
facsimile, exemplification, or certified copy of the copy or reproduction
reproduced from a film record is for all purposes, considered a facsimile,
exemplification, or certified copy of the original record."
Deposits
SECTION 5. Section 34-11-10 of the 1976 Code is amended to read:
"Section 34-11-10. (a) When a deposit has been made in a bank, banking
institution, or depository transacting business in this State in the names of two
or more persons, payable to any of the depositors or payable to any of the
depositors or the survivor or survivors, the deposit or any part thereof may be
paid to any of the persons, whether the other or others are living or not and the
receipt or acquittance of the person or persons paid is a valid and sufficient
release and discharge for any or all payments made.
(b) The pledge or hypothecation to any bank, banking institution, or other
depository transacting business in this State of all or part of a deposit account
in the names of two or more persons, payable to any of the depositors or payable
to any of the depositors or the survivor or survivors, by any depositor or
depositors, whether minor or adult, upon whose signature or signatures
withdrawals may be made from the account is, unless the terms of the deposit
account provide specifically to the contrary, a valid pledge and transfer to the
institution of that portion of the account pledged or hypothecated.
For purposes of this section the term 'deposit' includes a certificate of
deposit."
Deposits
SECTION 6. Section 34-11-20 of the 1976 Code is amended to read:
"Section 34-11-20. A bank may accept deposits of and pay out deposits upon
a check or other order of a minor and act in any other matter with respect to the
deposits of a minor with the same effect as if dealing with a person of full
legal capacity."
Application
SECTION 7. Section 34-11-40 of the 1976 Code, as amended by Act 574 of 1978, is
further amended to read:
"Section 34-11-40. When the holder of a time certificate of deposit for
money or other things of value deposited in a corporation organized under any
special act or the general laws of the State or deposited with any person engaged
in borrowing or lending money or for its safekeeping with or without the payment
of interest thereon desires a new certificate of deposit in the place of the
original certificate lost or destroyed, the holder shall make application to the
person for the issuance of a new certificate. The holder of the certificate
shall also make affidavit that the certificate has been lost or destroyed, that
it has not been assigned or pledged and that the holder has the bona fide title
and ownership of it. When the depository in its judgment considers it necessary,
it may require the holder to execute to it a good and sufficient bond to be
approved by the depository issuing the certificate in the amount of the market
value of the lost or destroyed certificate to indemnify the depository against
any loss or damage that may arise on account of the original certificate within
three years from the date of execution of the bond. Thereupon the depository
shall issue a new certificate of deposit in lieu of the one lost or destroyed and
after the lapse of three years from the date of the issuance of the new
certificate the original is null and void and no action at law or suit in equity
may thereafter be brought thereon."
Loss of certificate of deposit
SECTION 8. Section 34-11-50 of the 1976 Code, as amended by Act 574 of 1978, is
further amended to read:
"Section 34-11-50. In case of loss of any certificate of deposit, other
than those referred to in Section 34-11-40, or account book evidencing a savings
account with a bank, the party to whom the certificate or account book was
originally issued, or his personal representative, may apply to the bank for the
issuance of a duplicate certificate or account book. Thereupon, the bank, upon
receipt of the application, accompanied by an affidavit to the effect that the
certificate or account book evidencing the savings account with the bank has been
lost or destroyed, that the certificate or account book has not been pledged or
assigned in whole or in part, and that the applicant is the bona fide title
holder and owner of the lost certificate or account book, shall issue a duplicate
certificate or account book to the person entitled thereto and the former
certificate is null and void and no action at law or suit in equity may be
brought thereon. The bank may, whenever in its judgment it considers it
necessary, require of the applicant a good and sufficient bond to be approved by
the bank in the amount of the market value of the lost or destroyed certificate
or account book to indemnify the bank against any loss or damage that may arise
on account of the original certificate or account book within three years from
the date of the issuance of the duplicate certificate or account book. Nothing
contained in this section affects the rights of the parties to any transfer or
assignment of any certificate or account book as between themselves."
Opening of account
SECTION 9. Chapter 11 of Title 34 of the 1976 Code is amended by adding:
"Section 34-11-130. When an account, including a certificate of deposit,
is opened by a person describing himself in the account title as trustee or
custodian for another and no other or further notice of the existence and terms
of a legal and valid trust than the description is given in writing to a bank,
banking institution, or other depository transacting business in this State, in
the event of the death of the person so described as trustee or custodian the
withdrawal value of the account or any part thereof together with any earnings
thereon may be paid to the person for whom the account title indicates the
account was opened. The payment or delivery to any beneficiary, beneficiaries,
or designated person, or a receipt or acquittance signed by any beneficiary,
beneficiaries, or designated person, is for any payment or delivery a valid and
sufficient release and discharge of an institution for the payment or delivery
made."
Repeal
SECTION 10. Section 34-9-50 of the 1976 Code is repealed.
Time effective
SECTION 11. This act shall take effect upon approval by the Governor. |