South Carolina General Assembly
115th Session, 2003-2004

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S. 486

STATUS INFORMATION

General Bill
Sponsors: Senator McConnell
Document Path: l:\s-jud\bills\mcconnell\jud0047.gfm.doc

Introduced in the Senate on March 13, 2003
Currently residing in the Senate Committee on Banking and Insurance

Summary: Mortgages, fees, administrative provisions

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   3/13/2003  Senate  Introduced and read first time SJ-4
   3/13/2003  Senate  Referred to Committee on Banking and Insurance SJ-4

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

3/13/2003

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND SECTION 29-3-310, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MORTGAGE SATISFACTION, SO AS TO REQUIRE THAT ANY HOLDER OF RECORD OF A MORTGAGE WHICH HAS BEEN PAID IN FULL MUST ENTER THE SATISFACTION ON THE MORTGAGE IN THE PROPER OFFICE ONCE THE DEBT IS PAID; TO PROVIDE THAT A HOLDER OF THE MORTGAGE MAY ADD A REASONABLE FEE OF TWENTY-FIVE DOLLARS TO COVER THE COSTS OF PROCESSING AND RECORDING OF THE SATISFACTION; TO PROVIDE THAT THE HOLDER OF RECORD MAY MAIL THE DOCUMENTS TO SATISFY THE MORTGAGE BY CERTIFIED MAIL OR SOME OTHER FORM OF DELIVERY; AND TO AMEND SECTION 29-3-320, AS AMENDED, RELATING TO FAILURE TO COMPLY WITH A DEMAND FOR MORTGAGE SATISFACTION, SO AS TO PROVIDE THAT ANY HOLDER OF A MORTGAGE WHO HAS RECEIVED A DEMAND FOR SATISFACTION AND FAILS TO COMPLY WITH SECTION 29-3-310 WITHIN NINETY DAYS AFTER RECEIVING A DEMAND FOR SATISFACTION WILL BE LIABLE FOR A PENALTY OF FIVE THOUSAND DOLLARS PLUS ACTUAL DAMAGES, COSTS, AND ATTORNEYS FEES AND IF NON-COMPLIANT FOR AN ADDITIONAL NINETY DAYS, THE AMOUNT OF THE PENALTY MUST BE ONE HALF OF THE PAYOFF OR TWENTY-FIVE THOUSAND DOLLARS, WHICHEVER IS LESS.

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

SECTION    1.    Section 29-3-310 of the 1976 Code, as amended by Act 67 of 1999, is further amended to read:

" Section 29-3-310.    Any 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, or other form of delivery, with a proof of delivery, request is made, which secures a debt that has been paid in full must enter a satisfaction in the proper office on the mortgage which shall forever thereafter discharge and satisfy the mortgage in the proper office once the debt is paid.

Notwithstanding any limitations under Sections 37-2-202 and 37-3-202, the holder of record of the mortgage may add a reasonable fee to the amount of the debt, not to exceed twenty-five dollars, to cover the cost of processing and recording the satisfaction or cancellation.

Alternatively, if so instructed by the mortgagor or his legal representative, the holder of record may mail the documents satisfying the mortgage to the mortgagor or his legal representative by certified mail, or some other form of delivery which provides proof of delivery."

SECTION    2.    Section 29-3-320 of the 1976 Code, as amended by Act 67 of 1999, is further amended to read:

"Section 29-3-320.    Any holder of record of a mortgage having who has received such payment, a demand for satisfaction, or tender as aforesaid who shall not, by himself or his attorney, within three months after such by certified mail, or some other form of delivery, with a which provides proof of delivery, request and tender of fees of office, repair to the proper office and enter who fails to comply with Section 29-3-310 within ninety days after receiving the demand for 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, or twenty thousand dollars, whichever, is less is liable to the owners of the property for a penalty of five thousand dollars, plus actual damages, costs, and attorney's fees in the discretion of the court, 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 and if the non-compliance continues for an additional ninety days or longer, the amount of the penalty must be up to one-half of the amount of the payoff, or twenty-five thousand dollars, whichever is less.

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."

SECTION    3.    This act takes effect upon approval by the Governor.

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