H*4470(Rat #0418, Act #0265 of 2004)  General Bill, By Harrison, Altman, Cotty, 
Kirsh and Owens
 AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 36-9-410 SO AS TO PROVIDE THAT IT IS UNLAWFUL FOR A PERSON UNDER CERTAIN
 CONDITIONS TO INTENTIONALLY AND WILFULLY SELL OR DISPOSE OF PERSONAL PROPERTY
 THAT IS SUBJECT TO A PERFECTED SECURITY INTEREST WITH INTENT TO DEFRAUD THE
 SECURED PARTY WITHOUT HIS CONSENT AND WITHOUT PAYING THE DEBT, TO PROVIDE
 EXCEPTIONS, AND TO PROVIDE PENALTIES FOR VIOLATIONS. - ratified title

   12/17/03  House  Prefiled
   12/17/03  House  Referred to Committee on Judiciary
   01/13/04  House  Introduced and read first time HJ-86
   01/13/04  House  Referred to Committee on Judiciary HJ-86
   01/14/04  House  Member(s) request name added as sponsor: Owens
   04/20/04  House  Committee report: Favorable with amendment
                     Judiciary HJ-2
   04/21/04  House  Amended HJ-61
   04/21/04  House  Read second time HJ-62
   04/22/04  House  Read third time and sent to Senate HJ-40
   04/22/04  Senate Introduced and read first time SJ-5
   04/22/04  Senate Referred to Committee on Judiciary SJ-5
   05/26/04  Senate Committee report: Majority favorable with amend.,
                     minority unfavorable Judiciary SJ-14
   05/26/04  Senate  Minority report withdrawn SJ-14
   05/27/04  Senate Amended SJ-282
   05/27/04  Senate Read second time SJ-282
   06/01/04  Senate Read third time and returned to House with
                     amendments SJ-24
   06/02/04  House  Concurred in Senate amendment and enrolled HJ-30
   06/03/04         Ratified R 418
   07/06/04         Signed By Governor
   07/13/04         Copies available
   07/13/04         Effective date 07/06/04
   07/14/04         Act No. 265

(A265, R418, H4470)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 36-9-410 SO AS TO PROVIDE THAT IT IS UNLAWFUL FOR A PERSON UNDER CERTAIN CONDITIONS TO INTENTIONALLY AND WILFULLY SELL OR DISPOSE OF PERSONAL PROPERTY THAT IS SUBJECT TO A PERFECTED SECURITY INTEREST WITH INTENT TO DEFRAUD THE SECURED PARTY WITHOUT HIS CONSENT AND WITHOUT PAYING THE DEBT, TO PROVIDE EXCEPTIONS, AND TO PROVIDE PENALTIES FOR VIOLATIONS.

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

Unlawful sale or disposal of certain personal property

SECTION    1.    Part 4, Chapter 9, Title 36 of the 1976 Code is amended by adding:

"Section 36-9-410.    (A)    Notwithstanding Section 36-9-401, a person who intentionally or wilfully sells or disposes of personal property that is subject to a perfected security interest, with the intent to defraud the secured party, without the written consent of the secured party and without paying the debt secured by the perfected security interest within ten days after sale or disposal or, in that time, depositing the amount of the debt with the clerk of the court of common pleas for the county in which the secured party resides, is in violation of this section.

(B)    This section does not apply:

(1)    if the sale is made without the knowledge of or notice of the perfected security interest to the purchaser by the person selling the property;

(2)    to the granting of subsequent security interests;

(3)    if the loan secured by the personal property includes a charge for nonfiling insurance; or

(4)    to personal property titled by the Department of Public Safety or the Law Enforcement Division of the South Carolina Department of Natural Resources.

(C)    If the value of the personal property subject to a perfected security interest is worth:

(1)    one thousand dollars or less, a person who violates the provisions of this section is guilty of a misdemeanor triable in the magistrate's court and, upon conviction, must be fined not more than five hundred dollars or imprisoned not more than thirty days, or both;

(2)    more than one thousand dollars but less than five thousand dollars, a person who violates the provisions of this section is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years, or both;

(3)    five thousand dollars or more, a person who violates the provisions of this section is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than ten years, or both."

Time effective

SECTION    2.    This act takes effect upon approval by the Governor.

Ratified the 3rd day of June, 2004.

Approved the 6th day of July, 2004.