A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 37-3-110 SO AS TO DEFINE BRIDGE LOANS; AND BY AMENDING SECTION 37-3-402, RELATING TO BALLOON PAYMENTS, SO AS TO PROVIDE THAT THIS SECTION DOES NOT APPLY TO BRIDGE LOANS.

 

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

 

SECTION 1.  Chapter 3, Title 37 of the S.C. Code is amended by adding:

 

    Section 37-3-110.  "Bridge loan" means a consumer loan with a maturity of less than eighteen months connected with the acquisition or construction of residential real property intended to be occupied by the borrower.

 

SECTION 2.  Section 37-3-402(2) of the S.C. Code is amended to read:

 

    (2) This section does not apply to:

       (a) a transaction pursuant to a revolving loan account;

       (b) a transaction to the extent that the payment schedule is adjusted to the seasonal or irregular income or scheduled payments or obligations of the consumer;

       (c) a credit transaction to the extent a formula for determining the rate of the loan finance charge and any change in the amount of payment upon renegotiation or refinancing is specified in the agreement between the parties or is an alternative mortgage instrument;  or

       (d) a transaction of a class defined by rule of the administrator as not requiring for the protection of the consumer his right to refinance as provided in this section.; or

       (e) bridge loans.

 

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

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