Bill 4795

                    Current Status

Bill Number:                    4795
Ratification Number:            433
Act Number:                     355
Type of Legislation:            General Bill GB
Introducing Body:               House
Introduced Date:                19960321
Primary Sponsor:                Gamble 
All Sponsors:                   Gamble 
Drafted Document Number:        gjk\22505sd.96
Date Bill Passed both Bodies:   19960516
Date of Last Amendment:         19960501
Governor's Action:              U  Became law without signature of
                                Governor
Date of Governor's Action:      19960530
Subject:                        Mortgage loans, attorney and
                                insurance agent preferences

Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

------  19960606  Act No. A355
------  19960530  Unsigned, became law without
                  signature of Governor
------  19960523  Ratified R433
Senate  19960516  Read third time, enrolled for
                  ratification
Senate  19960515  Read second time, notice of
                  general amendments
Senate  19960509  Recalled from Committee,                 02 SBI
                  placed on the Calendar
Senate  19960502  Introduced, read first time,             02 SBI
                  referred to Committee
House   19960502  Read third time, sent to Senate
House   19960501  Amended, read second time
House   19960424  Committee report: Favorable with         26 HLCI
                  amendment
House   19960321  Introduced, read first time,             26 HLCI
                  referred to Committee

(A355, R433, H4795)

AN ACT TO AMEND SECTION 37-10-102, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ATTORNEY'S FEES AND OTHER CHARGES ON MORTGAGE LOANS FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES, SO AS TO PROVIDE THAT THE CREDITOR MUST ASCERTAIN PRIOR TO THE BORROWER'S CLOSING ATTORNEY PREFERENCE AND INSURANCE AGENT PREFERENCE, TO PROVIDE FOR THE MANNER IN WHICH CREDITORS MAY COMPLY WITH THIS PREFERENCE REQUIREMENT, AND TO PERMIT THE CREDITOR TO REQUIRE THE ATTORNEY AND INSURANCE AGENT SO CHOSEN TO COMPLY WITH REASONABLE CLOSING PROCEDURES.

Be it enacted by the General Assembly of the State of South Carolina:

Attorney and insurance agent preferences

SECTION 1. Section 37-10-102(a) of the 1976 Code is amended to read:

"(a) The creditor must ascertain prior to closing the preference of the borrower as to the legal counsel that is employed to represent the debtor in all matters of the transaction relating to the closing of the transaction and except in the case of a loan on property that is subject to the South Carolina Horizontal Property Act (Section 27-31-10 et seq.) the insurance agent to furnish required hazard and flood property insurance in connection with the mortgage and comply with such preference.

The creditor may comply with this section by:

(1) including the preference information on or with the credit application so that this information shall be provided on a form substantially similar to a form distributed by the administrator; or

(2) providing written notice to the borrower of the preference information with the notice being delivered or mailed no later than three business days after the application is received or prepared. If a creditor uses a preference notice form substantially similar to a form distributed by the administrator, the form is in compliance with this section.

The creditor may require the attorney or agent to provide reasonable security to the creditor by way of mortgage title insurance in a company acceptable to the creditor and to comply with reasonable closing procedures. If title insurance is made a condition of the loan at any point during the negotiations, it must remain a condition all the time thereafter regardless of which attorney ultimately closes the transaction. Any legal fees other than for examination and certification of the title, the preparation of all required documents, and the closing of the transaction required or incurred by the creditor in connection with the transaction is the responsibility of the creditor regardless of which party pays for the title work, document preparation, and closing."

Time effective

SECTION 2. This act takes effect upon approval by the Governor. However, nothing in this act shall affect any cause of action, right, or remedy accruing prior to the effective date of this act. Any such cause of action, right, or remedy accruing prior to the effective date of this act shall be governed by the law applicable at the time the cause of action, right, or remedy accrued.

Became law without the signature of the Governor -- 5/30/96.