H*3033(Rat #0409, Act #0328 of 2008)  General Bill, By Clemmons, Mahaffey and 
Cotty
 AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 29-3-345 SO AS TO PROVIDE FOR A DOCUMENT OF RESCISSION TO CORRECT AN ERRONEOUS
 RECORDING OF A SATISFACTION OF A MORTGAGE OR OTHER LIEN AFFECTING REAL
 PROPERTY, TO PROTECT A PRIORITY CREDITOR WHO RECORDS AFTER THE ERRONEOUS
 RECORDING, TO PROVIDE A CIVIL CAUSE OF ACTION FOR A PERSON INJURED BY A
 WRONGFUL RECORDING OF A DOCUMENT OF RESCISSION, TO ESTABLISH A RECORDING FEE,
 AND TO PROVIDE A FORM FOR THE DOCUMENT. - ratified title

   12/13/06  House  Prefiled
   12/13/06  House  Referred to Committee on Labor, Commerce and Industry
   01/09/07  House  Introduced and read first time HJ-28
   01/09/07  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-28
   01/11/07  House  Member(s) request name added as sponsor: Cotty
   01/23/07  House  Recalled from Committee on Labor, Commerce and
                     Industry HJ-14
   01/23/07  House  Referred to Committee on Judiciary HJ-14
   03/21/07  House  Committee report: Favorable with amendment
                     Judiciary HJ-4
   03/22/07         Scrivener's error corrected
   03/27/07  House  Requests for debate-Rep(s). WD Smith, Shoopman,
                     Hamilton, Vick, Davenport, Bedingfield,
                     Clemmons, Hagood, Lucas, Mack, Leach, Mahaffey,
                     Hosey, Jefferson, and Edge HJ-20
   03/28/07  House  Amended HJ-36
   03/28/07  House  Read second time HJ-40
   03/28/07  House  Roll call Yeas-107  Nays-0 HJ-40
   03/29/07  House  Read third time and sent to Senate HJ-31
   04/03/07  Senate Introduced and read first time SJ-14
   04/03/07  Senate Referred to Committee on Judiciary SJ-14
   04/06/07  Senate Referred to Subcommittee: Martin (ch), Malloy,
                     Campsen, Williams
   05/30/07  Senate Committee report: Favorable with amendment
                     Judiciary SJ-9
   06/03/08  Senate Committee Amendment Amended and Adopted SJ-30
   06/03/08  Senate Read second time SJ-30
   06/04/08         Scrivener's error corrected
   06/04/08  Senate Read third time and returned to House with
                     amendments SJ-157
   06/05/08  House  Concurred in Senate amendment and enrolled HJ-88
   06/10/08         Ratified R 409
   06/16/08         Signed By Governor
   06/24/08         Copies available
   06/24/08         Effective date 06/16/08
   07/11/08         Act No. 328

(A328, R409, H3033)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 29-3-345 SO AS TO PROVIDE FOR A DOCUMENT OF RESCISSION TO CORRECT AN ERRONEOUS RECORDING OF A SATISFACTION OF A MORTGAGE OR OTHER LIEN AFFECTING REAL PROPERTY, TO PROTECT A PRIORITY CREDITOR WHO RECORDS AFTER THE ERRONEOUS RECORDING, TO PROVIDE A CIVIL CAUSE OF ACTION FOR A PERSON INJURED BY A WRONGFUL RECORDING OF A DOCUMENT OF RESCISSION, TO ESTABLISH A RECORDING FEE, AND TO PROVIDE A FORM FOR THE DOCUMENT.

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

Document of rescission

SECTION    1.    Article 5, Chapter 3, Title 29 of the 1976 Code is amended by adding:

"Section 29-3-345.    (A)    In this section, 'document of rescission' means a document stating that an identified satisfaction or affidavit of satisfaction of a mortgage or other lien affecting real property was recorded erroneously or that a mortgage or other lien affecting real property was satisfied of record erroneously, the secured obligation remains unsatisfied, and the mortgage or other lien affecting real property remains in force.

(B)    If a satisfaction or affidavit of satisfaction of a mortgage or other lien affecting real property is recorded in error or a mortgage or other lien affecting real property is satisfied of record erroneously by another means, a document of rescission that has been duly witnessed and notarized in compliance with Section 30-5-30 may be executed and recorded. Upon recording, the document of rescission rescinds the erroneously recorded satisfaction or affidavit and the erroneous satisfaction of record of the mortgage or other lien affecting real property and reinstates the mortgage or other lien affecting real property as of the mortgage's original filing date. The clerk of court, register of deeds, or registrar of mesne conveyance shall index the document of rescission as of the date of filing.

(C)(1)    A recorded document of rescission has no effect and does not constitute a lien as to the rights of any grantee or lien creditor, their heirs, successors, or assigns who records an interest in the real property described in a mortgage or other lien affecting real property after the recording of    the satisfaction or affidavit of satisfaction of the mortgage, or other lien affecting real property and before the recording of the document of rescission, with a grantee under deed of title taking the property free and clear of the mortgage or other lien that was erroneously satisfied if the deed of title was received during the time period between the recording of the erroneous satisfaction and the end of the next business day observed at the clerk of court, register of deeds, or registrar of mesne conveyance's office following the recording of the document of rescission; and

(2)    any person or entity otherwise having priority over or taking free of the lien created by the mortgage or other lien affecting real property as reinstated.

(D)    A creditor who erroneously or wrongfully records a document of rescission is liable to a person injured by the recording for a sum of money not exceeding one-half of the original face amount of the debt secured by the mortgage or twenty-five thousand dollars, whichever is less, plus actual damages, costs, and attorney's fees.

(E)    The clerk of court, register of deeds, or registrar of mesne conveyance shall collect a filing fee of six dollars, and an additional one dollar per page for a document containing more than one page.

(F)    The 'document of rescission' must be in a form substantially similar to:

STATE OF SOUTH CAROLINA )    DOCUMENT OF RESCISSION

COUNTY OF _______________ )    AFFIDAVIT

The undersigned on oath, being first duly sworn, hereby certifies as follows:

1.    The undersigned is an authorized representative of ________________, the identified mortgagee/lien holder of the mortgage/lien ('Mortgage') filed at Book _____, Page _____ in the above-referenced County.

2.    With respect to the Mortgage, given by ________________ to _________________ dated _____________ and recorded in the above County in the Office of the Register of Deeds, this is to represent and certify that the mortgagee inadvertently and mistakenly marked the Mortgage as paid and/or satisfied and filed that document in the records of the County aforesaid.

3.    This is to represent and certify that such satisfaction was erroneous and inadvertent, with the obligation secured by the Mortgage remaining unsatisfied and outstanding and the referenced Mortgage remains in force and effect.

4.    Pursuant to Section 29-3-345, the Mortgage is reinstated.

____________________________________

By:_________________________________

Its:_________________________________

Street Address:_____________________________

City, State and Zip Code:_____________________

Telephone:___________________________

_______________________________________

Witness

_______________________________________

Witness

Personally appeared before me ________________________ who with _______________________ did witness and does acknowledge the due execution of the foregoing instrument.

Witness my hand and seal

the ______ day of ___________, ____________

___________________________________(L.S.)

Notary Public for:_______________________

My Commission Expires:___________________"

Time effective

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

Ratified the 10th day of June, 2008.

Approved the 16th day of June, 2008.