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Indicates Matter Stricken
Indicates New Matter
AMENDED
April 20, 1999
S. 351
Introduced by Senators McConnell, Matthews, Courtney, Patterson, Reese, Hayes, Jackson and Passailaigue
S. Printed 4/20/99--S.
Read the first time January 19, 1999.
TO AMEND SECTION 29-3-325, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RECORDING SATISFACTION OR CANCELLATION OF A MORTGAGE, SO AS TO DELETE CERTAIN PROVISIONS AND PROVIDE, THAT UPON PAYMENT IN FULL OF A MORTGAGE DEBT, WRITTEN REQUEST FOR SATISFACTION OF THE MORTGAGE, AND PAYMENT OF ANY REQUIRED SATISFACTION FEE, THE HOLDER OF RECORD OF THE MORTGAGE IS RESPONSIBLE FOR RECORDING THE SATISFACTION OR CANCELLATION OF THE MORTGAGE IT HOLDS AND TO FURTHER PROVIDE FOR THE DAMAGES AND PENALTIES FOR FAILURE TO SO SATISFY THE MORTGAGE; AND TO REPEAL SECTION 29-3-320, RELATING TO LIABILITY FOR FAILURE TO ENTER SATISFACTION OF A MORTGAGE.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 29-3-310 of the 1976 Code is amended to read:
"Section 29-3-310. Any person holder of record of a mortgage who has received full payment or satisfaction or to whom a legal tender has been made of his debts, damages, costs, and charges secured by mortgage of real estate shall, at the request by certified mail or other form of delivery with a proof of delivery of the mortgagor or of his legal representative or any other person being a creditor of the debtor or a purchaser under him or having an interest in any estate bound by the mortgage and on tender of the fees of office for entering satisfaction, within three months after the certified mail request is made, enter satisfaction in the proper office on the mortgage which shall forever thereafter discharge and satisfy the mortgage."
SECTION 2. Section 29-3-320 of the 1976 Code is amended to read:
"Section 29-3-320. Any person holder of record of a mortgage having received such payment, satisfaction, or tender as aforesaid who shall not, by himself or his attorney, within three months after such certified mail request and tender of fees of office, repair to the proper office and enter satisfaction as aforesaid shall forfeit and pay to the person aggrieved a sum of money not exceeding one half of the amount of the debt secured by the mortgage, to be recovered by action in any court of competent jurisdiction within the State. And on judgment being rendered for the plaintiff in any such action, the presiding judge shall order satisfaction to be entered on the judgment or mortgage aforesaid by the clerk, register or other proper officer whose duty it shall be, on receiving such order, to record it and to enter satisfaction accordingly.
Notwithstanding any limitations under Sections 37-2-202 and 37-3-202, the holder of record of the mortgage may charge a reasonable fee at the time of the satisfaction not to exceed twenty-five dollars to cover the cost of processing and recording the satisfaction or cancellation. If the mortgagor or his legal representative instructs the holder of record of the mortgage that the mortgagor will be responsible for filing the satisfaction, the holder of the mortgage shall mail or deliver the satisfied mortgage to the mortgagor or his legal representative with no satisfaction fee charged.
A holder of record of the mortgage may not be held liable in any action brought under this section if the holder of record of the mortgage shows by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adopted to avoid any error."
SECTION 3. Section 29-3-330 of the 1976 Code, as last amended by Act 478 of 1994, is further amended by adding:
"(e) Any licensed attorney admitted to practice in the State of South Carolina who can provide proof of payment of funds by evidence of payment made payable to the mortgagee, holder of record, servicer, or other party entitled to receive payment may record, or cause to be recorded, an affidavit, in writing, duly executed in the presence of two witnesses and probated or acknowledged, which states that full payment of the balance or pay-off amount of the mortgage or other instrument securing the payment of money and being a lien upon real property has been made and that evidence of payment from the mortgagee, assignee, or servicer exists. This affidavit, duly recorded in the appropriate county, shall serve as notice of satisfaction of the mortgage and release of the lien upon the real property. The filing of the affidavit shall be sufficient to satisfy, release, or discharge the lien. Upon presentation of the instrument of satisfaction, release, or discharge, the officer or his deputy having charge of the recording of instruments shall record the same. The licensed attorney signing any such instrument which is false is guilty of perjury and shall suffer the penalty provided by law for the crime of perjury. The affidavit referred to in this item (e) shall be as follows:
STATE OF SOUTH CAROLINA MORTGAGE LIEN
COUNTY OF ______________ SATISFACTION AFFIDAVIT
PURSUANT TO SECTION ___
OF SC CODE OF LAWS
FOR BOOK ____ PAGE _____
The undersigned on oath, being first duly sworn, hereby certifies as follows:
1. The undersigned is a licensed attorney admitted to practice in the State of South Carolina.
2. The with respect to the mortgage given by ___________________ to ______________________ dated _______ and recorded in the offices of the Register of Deeds in book _________ of page ________
3. a. [ ] That the undersigned was given written payoff information and made such pay off and is in possession of a canceled check to the mortgagee holder of a record or representative servicer.
b. [ ] That the undersigned was given written payoff information and made such pay off by wire transfer or other electronic means to the mortgagee, holder of a record or representative servicer and has confirmation from the undersigned's bank of the transfer to the account provided by the mortgagee, holder of record or representative servicer.
c. [ ] That the undersigned has been provided and is in possession of evidence of the full payment of the mortgage lien.
Under penalties of perjury, I declare that I have examined this affidavit and, to the best of my knowledge and belief, it is true, correct and complete.
___________________________ ___________________________
(Witness) (Signature)
_________________________ ____________________________
(Witness) (Name - Please Print)
SUBSCRIBED AND SWORN TO
before me this __________ day
of _______________________
______________________
(Notary Public)
My commission Expires:
Upon presentation to the office of the Register of Deeds the Register is directed to record pursuant to Section 29-3-330(e) and mark the mortgage satisfied of record."
SECTION 4. Section 29-3-325 of the 1976 Code is repealed.
SECTION 5. This act takes effect upon the approval by the Governor.
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