South Carolina General Assembly
115th Session, 2003-2004

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Bill 4470

Indicates Matter Stricken
Indicates New Matter

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

COMMITTEE AMENDMENT ADOPTED

May 27, 2004

H. 4470

Introduced by Reps. Harrison, Altman, Cotty, Kirsh and Owens

S. Printed 5/27/04--S.

Read the first time April 22, 2004.

            

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-13-305 SO AS TO CREATE THE OFFENSE OF DEFRAUDING SECURED CREDITORS AND TO PROVIDE A PENALTY.

Amend Title To Conform

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

SECTION    1.    Part 4, Chapter 9, Title 36 of the 1976 Code is amended by adding:

"Section 36-9-410.    (A)    Notwithstanding Section 36-9-401, a person who intentionally or wilfully sells or disposes of personal property that is subject to a perfected security interest, with the intent to defraud the secured party, without the written consent of the secured party and without paying the debt secured by the perfected security interest within ten days after sale or disposal or, in that time, depositing the amount of the debt with the clerk of the court of common pleas for the county in which the secured party resides, is in violation of this section.

(B)    This section does not apply:

(1)    if the sale is made without the knowledge of or notice of the perfected security interest to the purchaser by the person selling the property;

(2)    to the granting of subsequent security interests;

(3)    if the loan secured by the personal property includes a charge for nonfiling insurance; or

(4)    to personal property titled by the Department of Public Safety or the Law Enforcement Division of the South Carolina Department of Natural Resources.

(C)    If the value of the personal property subject to a perfected security interest is worth:

(1)    one thousand dollars or less, a person who violates the provisions of this section is guilty of a misdemeanor triable in the magistrates court and, upon conviction, must be fined not more five hundred dollars or imprisoned not more than thirty days, or both;

(2)    more than one thousand dollars but less than five thousand dollars, a person who violates the provisions of this section is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years, or both;

(3)    five thousand dollars or more, a person who violates the provisions of this section is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than ten years, or both."

SECTION    2.    This act takes effect upon approval by the Governor.

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