Current Status Introducing Body:Senate Bill Number:790 Primary Sponsor:Elliott Committee Number:12 Type of Legislation:GB Subject:Real estate trust funds Residing Body:Senate Current Committee:Labor, Commerce & Industry Computer Document Number:BBM/10603JM.93 Introduced Date:19930520 Last History Body:Senate Last History Date:19930520 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Elliott Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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790 Senate 19930520 Introduced, read first time, 12
referred to Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-57-280, SO AS TO PROVIDE THAT REAL ESTATE TRUST FUNDS MAY BE PLACED IN INTEREST-BEARING ACCOUNTS, THAT INTEREST EARNED SHALL BELONG TO THE OWNER OF THE FUNDS UNLESS OTHERWISE AGREED TO IN WRITING, THAT SUCH WRITING SHALL BE A SEPARATE DOCUMENT STATING THAT THE OWNER OF THE FUNDS HAS BEEN INFORMED THAT INTEREST EARNED ON HIS FUNDS SHALL ACCRUE TO HIS BENEFIT BUT THAT THE OWNER DESIRES THE INTEREST TO GO TO ANOTHER PARTY, AND THAT THIS REQUIREMENT SHALL NOT APPLY TO RENTAL MONIES WHERE THOSE MONIES ARE SUBJECT TO THE SALES TAX ON ACCOMMODATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 40-57-280. Notwithstanding any other provision of law, real estate trust funds may be placed in interest-bearing accounts in insured South Carolina banks and savings and loan institutions. Interest earned shall belong to the owner of the funds, unless otherwise agreed to in writing. Such writing shall not be included as part of a pre-printed contract form but shall be a separate document stating that the owner of the funds has been informed that interest earned on his funds shall accrue to his benefit but that the owner of the funds nevertheless desires the interest to go to another party; however, this requirement shall not apply to rental monies held in trust, provided that those monies are subject to the South Carolina sales tax on accommodations as provided by Section 12-36-920."
SECTION 2. This act takes effect upon approval by the Governor.