Current Status Bill Number:
4795Ratification Number: 433Act Number: 355Type of Legislation: General Bill GBIntroducing Body: HouseIntroduced Date: 19960321Primary Sponsor: GambleAll Sponsors: GambleDrafted Document Number: gjk\22505sd.96Date Bill Passed both Bodies: 19960516Date of Last Amendment: 19960501Governor's Action: U Became law without signature of GovernorDate of Governor's Action: 19960530Subject: 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 CommitteeView additional legislative information at the LPITS web site.
(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."
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.