South Carolina General Assembly
107th Session, 1987-1988

Bill 3380

                    Current Status

Bill Number:               3380
Ratification Number:       743
Act Number                 635
Introducing Body:          House
Subject:                   Superior liens
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A635, R743, H3380)

AN ACT TO AMEND SECTION 29-3-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MORTGAGES FOR FUTURE ADVANCES, SO AS TO PROVIDE FOR THE SUPERIORITY OF THE LIEN OF A PERSON WHO HAS FURNISHED LABOR, SERVICES, OR MATERIAL IN CONNECTION WITH THE CONSTRUCTION OF IMPROVEMENTS TO REAL PROPERTY; AND TO AMEND SECTION 29-5-70, RELATING TO MECHANICS' LIENS, SO AS TO PROVIDE FOR UNENFORCEABLE LIENS CLAIMED BY ANY MECHANIC OR MATERIALMAN FURNISHING LABOR, SERVICES, OR MATERIAL AND PROVIDE EXCEPTIONS.

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

Superior liens

SECTION 1. Section 29-3-50 of the 1976 Code is amended by adding at the end:

"However, the lien of a person who has furnished labor, services, or material in connection with the construction of improvements to real property is superior to the lien of a recorded mortgage as to disbursements made after filing of the notice of the mechanic's lien required by Section 29-5-90 and service of the notice on all prior recorded mortgage holders. Service of the notice on prior recorded mortgage holders must be made pursuant to Rule 4 of the South Carolina Rules of Civil Procedure. The priority of the mechanic's lien extends only to the mortgage disbursements made after the filing of the lien and service of the notice on all prior recorded mortgage holders."

Liens unenforceable

SECTION 2. Section 29-5-70 of the 1976 Code is amended to read:

"Section 29-5-70. Except as otherwise provided in Section 29-3-50, a lien claimed by any mechanic or materialman furnishing labor, services, or material is not enforceable against any mortgage recorded before the filing of the notice pursuant to Section 29-5-90 setting forth the statement of account upon which the lien is based."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.