H*3294(Rat #0561, Act #0451 of 1982)  General Bill, By 
 House Labor, Commerce and Industry
 A Bill to amend Section 27-17-310, Code of Laws of South Carolina, 1976,
 relating to bank service charges, so as to change the amount which may be
 charged on accounts determined to be inactive for a period of twelve months
 and provide that the charges may not be placed against an account until notice
 of the charges is acknowledged in writing by the owner or the notice of the
 charges is sent to the owner at the address indicated on the bank's records
 and at the owner's last known address; and to amend Section 27-17-30, relating
 to the presumed abandonment of property held or owing by a banking or
 financial organization or by a business association, so as to shorten from
 twelve to seven years the period in which inactivity by the owner shall result
 in the presumed abandonment of any demand, savings, or matured time deposit
 made in this State with a banking organization, together with any interest or
 dividend which has accrued thereon, excluding any charges that may lawfully be
 withheld, or any funds paid in this State toward the purchase of shares or
 other interest in a financial organization or any deposit made therewith in
 this State, and any interest or dividend which has accrued thereon, excluding
 any charges that may lawfully be withheld.-at

   01/12/82  House  Introduced, read first time, placed on calendar
                     without reference HJ-106
   01/19/82  House  Debate adjourned HJ-231
   01/20/82  House  Debate adjourned HJ-261
   01/21/82  House  Read second time HJ-311
   01/26/82  House  Read third time and sent to Senate HJ-342
   01/27/82  Senate Introduced and read first time SJ-12
   01/27/82  Senate Referred to Committee on Banking and Insurance SJ-12
   04/28/82  Senate Committee report: Favorable with amendment
                     Banking and Insurance SJ-24
   05/31/82  Senate Read second time SJ-43
   05/31/82  Senate Ordered to third reading with notice of
                     amendments SJ-43
   06/01/82  Senate Amended SJ-15
   06/01/82  Senate  Read third time SJ-17
   06/01/82  Senate Returned SJ-17
   06/02/82  House  Concurred in Senate amendment and enrolled HJ-3777
   06/03/82  House  Ratified R 561 HJ-3945
   06/09/82         Signed By Governor
   06/09/82         Effective date 06/09/82
   06/09/82         Act No. 451
   06/18/82         Copies available

AN ACT TO AMEND SECTION 27-17-310, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BANK SERVICE CHARGES, SO AS TO CHANGE THE AMOUNT WHICH MAY BE CHARGED ON ACCOUNTS DETERMINED TO BE INACTIVE FOR A PERIOD OF TWELVE MONTHS AND PROVIDE THAT THE CHARGES MAY NOT BE PLACED AGAINST AN ACCOUNT UNTIL NOTICE OF THE CHARGES IS ACKNOWLEDGED IN WRITING BY THE OWNER OR THE NOTICE OF THE CHARGES IS SENT TO THE OWNER AT THE ADDRESS INDICATED ON THE BANK'S RECORDS AND AT THE OWNER'S LAST KNOWN ADDRESS; AND TO AMEND SECTION 27-17-30, RELATING TO THE PRESUMED ABANDONMENT OF PROPERTY HELD OR OWING BY A BANKING OR FINANCIAL ORGANIZATION OR BY A BUSINESS ASSOCIATION, SO AS TO SHORTEN FROM TWELVE TO SEVEN YEARS THE PERIOD IN WHICH INACTIVITY BY THE OWNER SHALL RESULT IN THE PRESUMED ABANDONMENT OF ANY DEMAND, SAVINGS, OR MATURED TIME DEPOSIT MADE IN THIS STATE WITH A BANKING ORGANIZATION, TOGETHER WITH ANY INTEREST OR DIVIDEND WHICH HAS ACCRUED THEREON, EXCLUDING ANY CHARGES THAT MAY LAWFULLY BE WITHHELD, OR ANY FUNDS PAID IN THIS STATE TOWARD THE PURCHASE OF SHARES OR OTHER INTEREST IN A FINANCIAL ORGANIZATION OR ANY DEPOSIT MADE THEREWITH IN THIS STATE, AND ANY INTEREST OR DIVIDEND WHICH HAS ACCRUED THEREON, EXCLUDING ANY CHARGES THAT MAY LAWFULLY BE WITHHELD.

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 is amended to read:

"Section 27-17-310. All service charges on accounts in banks must be uniform within classes for all accounts, including those which would be deemed inactive pursuant to this chapter. Service charges made on accounts which have been determined to be inactive for a period of twelve months shall 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. Provided, that 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 such charges is sent to the account owner at the address indicated on the bank's records and at his last known address."

Property presumed abandoned

Section 2. Section 27-17-30 of the 1976 Code is amended by striking on lines six and nineteen "twelve" and inserting "seven". The section when amended shall read:

"Section 27-17-30. The following property held or owing by a banking financial organization or by a business association is presumed abandoned:

(1) Any demand, savings, or matured time deposit made in this State with a banking organization, together with any interest or dividend which has accrued thereon, excluding any charges that may lawfully be withheld, unless the owner has, within seven years:

(a) Increased or decreased the amount of the deposit, or presented the passbook or other similar evidence if the deposit for the crediting of interest; or

(b) Corresponded in writing with the banking organization concerning the deposit; or

(c) Otherwise indicated an interest in the deposit as evidenced by memorandum on file with the banking organization.

(2) Any funds paid in this State toward the purchase of shares or other interest in a financial organization or any deposit made therewith in this State, and any interest or dividend which has accrued thereon, excluding any charges that may lawfully be withheld, unless the owner has within seven years:

(a) Increased or decreased the amount of the funds or deposit, or presented an appropriate record for the crediting of interest or dividends; or

(b) Corresponded in writing with the financial organization concerning the funds or deposit; or

(c) Otherwise indicated an interest in the funds or deposit as evidenced by a memorandum on file with the financial organization.

(3) Any sum payable on checks certified in this State or on written instruments issued in this State on which a banking or financial organization or business association is directly liable, including, by way of illustration but not of limitation, certificates of deposits, drafts, and travelers' checks, that has been outstanding for more than fifteen years from the date it was payable on demand, unless the owner has within fifteen years corresponded in writing with the banking or financial organization or business association concerning it, or otherwise indicated an interest as evidenced by a memorandum on file with the banking or financial organization or business association."

Time effective

Section 3. This act shall take effect upon the approval by the Governor.