S 0996 General Bill, By Short, Gregory and Jackson

Similar(H 4610)
 A BILL TO AMEND SECTION 37-1-109 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO THE CHANGE OF DOLLAR AMOUNTS USED IN THE CONSUMER PROTECTION CODE,
 SO AS TO INCLUDE THE AMOUNT AT WHICH SUPERVISED LENDERS MUST LEND AT
 RESTRICTED LENDER RATES AS AN AMOUNT THAT MUST BE ADJUSTED IN ACCORDANCE WITH
 THIS SECTION; TO AMEND SECTION 37-3-201, RELATING TO LOAN FINANCE CHARGES FOR
 SUPERVISED LENDERS, SO AS TO INCREASE THE DOLLAR AMOUNT AT WHICH SUPERVISED
 LENDERS MUST LEND AT RESTRICTED LENDER RATES FROM SIX HUNDRED DOLLARS TO EIGHT
 HUNDRED DOLLARS; AND TO AMEND SECTION 37-3-305, RELATING TO THE MAXIMUM RATE
 SCHEDULE FILED AND POSTED BY CREDITORS, SO AS TO INCREASE THE DOLLAR AMOUNT
 FOR WHICH SUPERVISED LENDERS MAY NOT POST A RATE EXCEEDING THE MAXIMUM CHARGES
 FOR RESTRICTED LENDERS FROM SIX HUNDRED DOLLARS TO EIGHT HUNDRED DOLLARS.

   02/05/98  Senate Introduced and read first time SJ-9
   02/05/98  Senate Referred to Committee on Banking and Insurance SJ-9
   03/19/98  Senate Committee report: Favorable with amendment
                     Banking and Insurance SJ-12

COMMITTEE REPORT

March 19, 1998

S. 996

Introduced by Senators Short, Jackson and Gregory

S. Printed 3/19/98--S.

Read the first time February 5, 1998.

To whom was referred a Bill (S. 996), to amend Section 37-1-109 of the Code of Laws of South Carolina, 1976, relating to the change of dollar amounts used in the Consumer Protection Code, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

Amend the bill, as and if amended, by adding the following:

/"SECTION 4. Section 34-29-100(a) of the 1976 Code is 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 thereon. The renewal or refinancing of a loan shall constitute a final entry. Notwithstanding any other act of law or regulation each licensee, subject to the approval of the Director, Consumer Finance Division of the South Carolina Board of Financial Institutions, may retain such books and records in such other medium, electronic, or otherwise, that conforms to the requirements of Section 34-29-100(a)."/

Amend sections to conform.

Amend title to conform.

EDWARD E. SALEEBY, for Committee.

A BILL

TO AMEND SECTION 37-1-109 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CHANGE OF DOLLAR AMOUNTS USED IN THE CONSUMER PROTECTION CODE, SO AS TO INCLUDE THE AMOUNT AT WHICH SUPERVISED LENDERS MUST LEND AT RESTRICTED LENDER RATES AS AN AMOUNT THAT MUST BE ADJUSTED IN ACCORDANCE WITH THIS SECTION; TO AMEND SECTION 37-3-201, RELATING TO LOAN FINANCE CHARGES FOR SUPERVISED LENDERS, SO AS TO INCREASE THE DOLLAR AMOUNT AT WHICH SUPERVISED LENDERS MUST LEND AT RESTRICTED LENDER RATES FROM SIX HUNDRED DOLLARS TO EIGHT HUNDRED DOLLARS; AND TO AMEND SECTION 37-3-305, RELATING TO THE MAXIMUM RATE SCHEDULE FILED AND POSTED BY CREDITORS, SO AS TO INCREASE THE DOLLAR AMOUNT FOR WHICH SUPERVISED LENDERS MAY NOT POST A RATE EXCEEDING THE MAXIMUM CHARGES FOR RESTRICTED LENDERS FROM SIX HUNDRED DOLLARS TO EIGHT HUNDRED DOLLARS.

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

SECTION 1. Section 37-1-109(6) of the 1976 Code is amended to read:

"(6) The dollar amounts in the following sections of this title are subject to change in accordance with this section: 37-2-104(1)(e), 37-2-106(1)(b), 37-3-201(2), 37-2-203(1), 37-2-407(1), 37-2-705 (1)(a) and (b), 37-3-104(1)(d), 37-3-203(1), 37-3-305(9), 37-3-510, 37-3-511, 37-3-514, 37-5-103(2), (3), and (4)."

SECTION 2. Section 37-3-201(2) of the 1976 Code is amended to read:

"(2) With respect to a consumer loan, including a loan pursuant to open-end credit, a supervised lender may contract for and receive a loan finance charge as provided:

(a) on loans with a cash advance not exceeding six hundred eight hundred dollars, a maximum charge not exceeding the maximum charges imposed in Section 34-29-140 as disclosed as an annual percentage rate, provided that a supervised lender may impose a finance charge at a rate less than provided in Section 34-29-140, and provided further that the maximum charge shall not exceed the rate posted and filed pursuant to Section 37-3-305;

(b) on loans with a cash advance exceeding six hundred eight hundred dollars, and on all loans, regardless of the dollar amount, made by Supervised Financial Organizations, any rate filed and posted pursuant to Section 37-3-305; or

(c) on loans of any amount, if the rate is not filed and posted pursuant to Section 37-3-305, eighteen percent per year on the unpaid balances of principal."

SECTION 3. Section 37-3-305(9) of the 1976 is amended to read:

"(9) On loans with a cash advance not exceeding six hundred eight hundred dollars, a licensed lender may not post a rate which exceeds the maximum charges imposed in Section 34-29-140 as disclosed as an annual percentage rate or that rate filed and posted pursuant to this section, whichever is less."

SECTION 4. This act takes effect upon approval by the Governor.