Current Status Bill Number:1241 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19960307 Primary Sponsor:Passailaigue All Sponsors:Passailaigue Drafted Document Number:res9941.elp Residing Body:Senate Current Committee:Banking and Insurance Committee 02 SBI Subject:Default by consumer, creditor's procedures to follow
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ Senate 19960307 Introduced, read first time, 02 SBI referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND SECTION 37-5-111, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CURE OF DEFAULT, SO AS TO PROVIDE PROCEDURES FOR CREDITORS TO FOLLOW WHEN REPOSSESSING GOODS THAT ARE SUBJECT TO AN INSTALLMENT CONTRACT UPON DEFAULT BY THE CONSUMER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 37-5-111(1) of the 1976 Code is amended to read:
"(1) (a) With respect to a secured or unsecured consumer credit transaction payable in two or more installments, except as provided in subsection (2), after a default consisting only of the consumer's failure to make a required payment, a creditor, because of that default, may neither accelerate maturity of the unpaid balance of the obligation, nor may, at his option, either give the notice provided in Section 37-5-110 or take possession of or otherwise enforce a security interest in the goods that are collateral. A creditor who elects to give notice of default shall not take any further action to enforce a security interest in the collateral until twenty ten days after a notice of the consumer's right to cure (Section 37-5-110) is given. Until expiration of the minimum applicable period after the notice is given, the consumer may cure all defaults consisting of a failure to make the required payment by tendering the amount of all unpaid sums due at the time of the tender, without acceleration, plus any unpaid delinquency or deferral charges. Cure restores the consumer to his rights under the agreement as though the defaults had not occurred.
(b) Notwithstanding any other provision of law, if the creditor in a consumer credit transaction does not give the notice of default prescribed in Section 37-5-110, he shall retain such goods for fifteen days after the retaking within the state in which they were located when retaken. During such period the consumer, upon payment or tender of the unaccelerated amount due under such contract at the time of retaking and interest, or upon performance or tender of performance of such other condition as may be named in such contract as precedent to the consumer's continued possession of such goods, or upon performance or tender of performance of any other promise for the breach of which such goods were retaken, and upon payment of the actual and reasonable expenses of any retaking and storing, may redeem such goods and become entitled to take possession of the same and to continue in the performance of such contract as if no default had occurred. The creditor shall within three days of the retaking furnish or mail by registered or certified mail, to the last known address of the consumer a written statement of the unaccelerated sum due under such contract and the actual and reasonable expense of any retaking and storing. For failure to furnish or mail such statement as required by this section, the creditor shall forfeit the right to claim payment for the actual and reasonable expenses of retaking and storage, and also shall be liable for the actual damages suffered because of such failure. If such goods are perishable so that retention for fifteen days as herein prescribed would result in their destruction or substantial injury, the provisions of this subsection shall not apply and the creditor may resell the goods immediately upon such retaking."
SECTION 2. This act takes effect upon approval by the Governor.