Current Status Introducing Body:House Bill Number:4522 Primary Sponsor:Quinn Committee Number:26 Type of Legislation:GB Subject:Consumer loans, prepayment penalties Residing Body:House Current Committee:Labor, Commerce and Industry Date Tabled:Apr 14, 1992 Computer Document Number:CYY/18858.SD Introduced Date:Mar 04, 1992 Last History Body:House Last History Date:Apr 14, 1992 Last History Type:Tabled in Committee Scope of Legislation:Statewide All Sponsors:Quinn Type of Legislation:General Bill
Bill Body Date Action Description CMN
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4522 House Apr 14, 1992 Tabled in Committee 26
4522 House Mar 04, 1992 Introduced, read first time, 26
referred to Committee
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TO AMEND SECTION 37-3-209, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RIGHT TO PREPAY CONSUMER LOANS WITHOUT PENALTY, SO AS TO AUTHORIZE CERTAIN PREPAYMENT PENALTIES ON LOANS OVER FIVE THOUSAND DOLLARS SECURED BY A LIEN ON REAL ESTATE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 37-3-209 of the 1976 Code is amended to read:
"Section 37-3-209. Subject to the provisions on rebate upon prepayment (Section 37-3-210), the debtor may prepay in full the unpaid balance of a consumer loan, refinancing, or consolidation at any time without penalty. However, a lender may collect a prepayment penalty on any interest bearing loan, in which the amount financed is over five thousand dollars, secured by a lien on real estate which prepayment penalty may not be greater than the following:
(A) $500.00 - if prepaid during the first year of the loan;
(B) $400.00 - if prepaid during the second year of the loan;
(C) $300.00 - if prepaid during the third year of the loan.
No prepayment penalty may be imposed if the loan is prepaid more than three years from the date of the note creating the debt, or if the loan is renewed or refinanced with the current lender."
SECTION 2. This act takes effect upon approval by the Governor.