Bill 996

                    Current Status

Bill Number:                       996
Type of Legislation:               General Bill GB
Introducing Body:                  Senate
Introduced Date:                   19980205
Primary Sponsor:                   Short
All Sponsors:                      Short, Jackson and Gregory
                                   
Drafted Document Number:           res1590.lhs
Companion Bill Number:             4610
Residing Body:                     Senate
Subject:                           Consumer creditors, loans,
                                   finance charges, rates and schedule;
                                   dollar amount adjustments; Consumer
                                   Affairs

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

Senate  19980319  Committee report: Favorable with         02 SBI
                  amendment
Senate  19980205  Introduced, read first time,             02 SBI
                  referred to Committee

Indicates Matter Stricken
Indicates New Matter

COMMITTEE REPORT

March 19, 1998

S. 996

S. Printed 3/19/98--S.

Read the first time February 5, 1998.

To whom was referred a Bill (S. 996), to amend Section 37-1-109 of the Code of Laws of South Carolina, 1976, relating to the change of dollar amounts used in the Consumer Protection Code, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

Amend the bill, as and if amended, by adding the following:

/"SECTION 4. Section 34-29-100(a) of the 1976 Code is amended to read:

(a) Each licensee shall keep and use in his business such full and correct books and accounting records as are in accordance with sound and accepted accounting principles and practices and such books and records, including cards used in the card system, if any, as are in accord with the rules and regulations lawfully made by the board. Each licensee shall preserve such books, accounts, and records, including cards used in the card system, if any, for at least two years after making the final entry on any loan recorded thereon. The renewal or refinancing of a loan shall constitute a final entry. Notwithstanding any other act of law or regulation each licensee, subject to the approval of the Director, Consumer Finance Division of the South Carolina Board of Financial Institutions, may retain such books and records in such other medium, electronic, or otherwise, that conforms to the requirements of Section 34-29-100(a)."/

Amend sections to conform.

Amend title to conform.

EDWARD E. SALEEBY, for Committee.

A BILL

TO AMEND SECTION 37-1-109 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CHANGE OF DOLLAR AMOUNTS USED IN THE CONSUMER PROTECTION CODE, SO AS TO INCLUDE THE AMOUNT AT WHICH SUPERVISED LENDERS MUST LEND AT RESTRICTED LENDER RATES AS AN AMOUNT THAT MUST BE ADJUSTED IN ACCORDANCE WITH THIS SECTION; TO AMEND SECTION 37-3-201, RELATING TO LOAN FINANCE CHARGES FOR SUPERVISED LENDERS, SO AS TO INCREASE THE DOLLAR AMOUNT AT WHICH SUPERVISED LENDERS MUST LEND AT RESTRICTED LENDER RATES FROM SIX HUNDRED DOLLARS TO EIGHT HUNDRED DOLLARS; AND TO AMEND SECTION 37-3-305, RELATING TO THE MAXIMUM RATE SCHEDULE FILED AND POSTED BY CREDITORS, SO AS TO INCREASE THE DOLLAR AMOUNT FOR WHICH SUPERVISED LENDERS MAY NOT POST A RATE EXCEEDING THE MAXIMUM CHARGES FOR RESTRICTED LENDERS FROM SIX HUNDRED DOLLARS TO EIGHT HUNDRED DOLLARS.

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

SECTION 1. Section 37-1-109(6) of the 1976 Code is amended to read:

"(6) The dollar amounts in the following sections of this title are subject to change in accordance with this section: 37-2-104(1)(e), 37-2-106(1)(b), 37-3-201(2), 37-2-203(1), 37-2-407(1), 37-2-705 (1)(a) and (b), 37-3-104(1)(d), 37-3-203(1), 37-3-305(9), 37-3-510, 37-3-511, 37-3-514, 37-5-103(2), (3), and (4)."

SECTION 2. Section 37-3-201(2) of the 1976 Code is amended to read:

"(2) With respect to a consumer loan, including a loan pursuant to open-end credit, a supervised lender may contract for and receive a loan finance charge as provided:

(a) on loans with a cash advance not exceeding six hundred eight hundred dollars, a maximum charge not exceeding the maximum charges imposed in Section 34-29-140 as disclosed as an annual percentage rate, provided that a supervised lender may impose a finance charge at a rate less than provided in Section 34-29-140, and provided further that the maximum charge shall not exceed the rate posted and filed pursuant to Section 37-3-305;

(b) on loans with a cash advance exceeding six hundred eight hundred dollars, and on all loans, regardless of the dollar amount, made by Supervised Financial Organizations, any rate filed and posted pursuant to Section 37-3-305; or

(c) on loans of any amount, if the rate is not filed and posted pursuant to Section 37-3-305, eighteen percent per year on the unpaid balances of principal."

SECTION 3. Section 37-3-305(9) of the 1976 is amended to read:

"(9) On loans with a cash advance not exceeding six hundred eight hundred dollars, a licensed lender may not post a rate which exceeds the maximum charges imposed in Section 34-29-140 as disclosed as an annual percentage rate or that rate filed and posted pursuant to this section, whichever is less."

SECTION 4. This act takes effect upon approval by the Governor.