Current Status Bill Number:
267Type of Legislation: General Bill GBIntroducing Body: SenateIntroduced Date: 19950110Primary Sponsor: PassailaigueAll Sponsors: PassailaigueDrafted Document Number: JUD6012.ELPResiding Body: HouseCurrent Committee: Labor, Commerce and Industry Committee 26 HLCIDate of Last Amendment: 19960125Subject: Mortgage foreclosures, attorney fees
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ House 19960213 Introduced, read first time, 26 HLCI referred to Committee Senate 19960208 Read third time, sent to House Senate 19960131 Read second time, ordered to third reading with notice of general amendments Senate 19960125 Amended Senate 19950309 Committee report: Favorable with 02 SBI amendment Senate 19950110 Introduced, read first time, 02 SBI referred to Committee Senate 19941114 Prefiled, referred to Committee 02 SBIView additional legislative information at the LPITS web site.
January 25, 1996
S. Printed 1/25/96--S.
Read the first time January 10, 1995.
TO AMEND ARTICLE 7, CHAPTER 3, TITLE 29, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MORTGAGE FORECLOSURE, BY ADDING SECTION 29-3-800, SO AS TO PROVIDE THAT CONTRACTUAL PROVISIONS FOR ATTORNEY FEES IN THE AMOUNT OF A SPECIFIED PERCENTAGE OF THE BALANCE DUE UPON DEFAULT OF A MORTGAGE OR NOTE ARE UNCONSCIONABLE, THAT IN FORECLOSURE ACTIONS THE COURT MUST MAKE A FINDING AS TO THE REASONABLENESS OF ATTORNEY FEES NOTWITHSTANDING ANY CONTRACTUAL PROVISION THAT WOULD AWARD ATTORNEY FEES AS A SPECIFIED PERCENTAGE OF THE BALANCE DUE UPON DEFAULT, AND THAT PARTIES TO A FORECLOSURE ACTION MAY AGREE TO THE AMOUNT OF ATTORNEY FEES DUE, AND IN THE EVENT THE PARTIES REACH SUCH AN AGREEMENT, THE COURT IS NOT REQUIRED TO MAKE A FINDING AS TO THE REASONABLENESS OF THE ATTORNEY FEES.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 7, Chapter 3, Title 29 of the 1976 Code is amended by adding:
"Section 29-3-800. (A) Contractual provisions for a mortgagee or creditor to obtain attorney fees upon default of a mortgage or note in the amount of a specified percentage of the balance due upon default are unenforceable.
(B) In any foreclosure action in which a mortgagee or creditor is seeking attorney fees pursuant to a contractual provision awarding attorney fees in the amount of a specified percentage of the balance due upon default, the court must make a finding as to the reasonableness of the attorney fees and award only such fees as are reasonable.
(C) Parties to a foreclosure action may agree to the attorney fees due the mortgagee or creditor upon default, and in the event the parties reach such an agreement, the court is not required to make a finding as to the reasonableness of the attorney fees as provided in (B)."
SECTION 2. This act takes effect upon approval by the Governor.