Current Status Introducing Body:House Bill Number:3571 Primary Sponsor:Rudnick Committee Number:02 Type of Legislation:GB Subject:Financial institution as mortgagee Residing Body:Senate Current Committee:Banking and Insurance Computer Document Number:JIC/5322.HC Introduced Date:Feb 21, 1991 Last History Body:Senate Last History Date:May 23, 1991 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Rudnick Baxley Kempe Type of Legislation:General Bill
Bill Body Date Action Description CMN
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3571 Senate May 23, 1991 Introduced, read first time, 02
referred to Committee
3571 House May 22, 1991 Read third time, sent to
Senate
3571 House May 16, 1991 Read second time
3571 House May 09, 1991 Committee Report: Favorable 25
3571 House Feb 21, 1991 Introduced, read first time, 25
referred to Committee
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COMMITTEE REPORT
May 9, 1991
H. 3571
S. Printed 5/9/91--H.
Read the first time February 21, 1991.
To whom was referred a Bill (H. 3571), to amend the Code of Laws of South Carolina, 1976, by adding Section 29-3-325 so as to provide that when a mortgagee or assignee of a mortgage is a Financial Institution, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass:
DAVID H. WILKINS, for Committee.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 29-3-325 SO AS TO PROVIDE THAT WHEN A MORTGAGEE OR ASSIGNEE OF A MORTGAGE IS A FINANCIAL INSTITUTION, IT MUST RECORD THE SATISFACTION OR CANCELLATION OF THE MORTGAGE WITHIN THIRTY DAYS OF RECEIPT OF THE AMOUNT NECESSARY TO SATISFY OR CANCEL THE DEBT SECURED BY THE MORTGAGE, TO AUTHORIZE INSTITUTIONS TO IMPOSE A REASONABLE FEE OF NOT MORE THAN TWENTY-FIVE DOLLARS TO COVER THE COST OF RECORDING THE SATISFACTION OR CANCELLATION, TO IMPOSE A PENALTY ON A FINANCIAL INSTITUTION WHICH FAILS TO RECORD THE SATISFACTION OR CANCELLATION, TO MAKE THIS PENALTY AN ALTERNATIVE TO OTHER REMEDIES, TO PROVIDE EXCEPTION, AND TO MAKE THE SECTION APPLICABLE TO MORTGAGES SATISFIED OR CANCELED AFTER DECEMBER 31, 1991.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 5, Chapter 3, Title 29 of the 1976 Code is amended by adding:
"Section 29-3-325. When no written instructions to the contrary are given by the mortgagor or a closing agent, acting on behalf of the mortgagor, to the mortgagee or to an assignee of the mortgage, and when the mortgagee or assignee of the mortgage is a financial institution, the mortgagee or assignee is responsible for recording the satisfaction or cancellation of the mortgage it holds. The financial institution may charge a reasonable fee not to exceed twenty-five dollars to cover the cost of recording the satisfaction or cancellation.
If the financial institution fails to record the satisfaction or cancellation within thirty days of receipt of the full amount necessary to satisfy the debt or obligation secured by the mortgage, it must pay to the mortgagor upon demand a penalty in the amount of one hundred dollars or in the alternative the mortgagor is entitled to the remedies provided by Sections 29-3-310 and 29-3-320 if these sections apply. However, a violation of this section is not considered to be a violation of Sections 29-3-310 and 29-3-320. Failure to pay this one hundred dollar penalty within ten days after demand subjects the financial institution to additional penalties of one hundred dollars for each ten days or portion thereof the penalty remains unpaid after receipt of demand.
The provisions of this section do not apply to `open-end credit' plans as defined by federal law, or to mortgages containing future advance clauses even though they secure closed-end transactions."
SECTION 2. Section 29-3-325 of the 1976 Code, as added by this act, applies with respect to mortgages satisfied or canceled after December 31, 1991.
SECTION 3. This act takes effect upon approval by the Governor.