Indicates Matter Stricken

Indicates New Matter

 

Committee Report

April 30, 2026

 

S. 787

 

Introduced by Senator Gambrell

 

S. Printed 4/30/26--H.

Read the first time February 25, 2026

 

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The committee on House Labor, Commerce and Industry

To whom was referred a Bill (S. 787) 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, etc., respectfully

Report:

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, SECTION 1, by striking Section 37-3-110 and inserting:

    Section 37-3-110.  "Bridge loan" means a consumer loan with a maturity of less than eighteen twelve months connected withto facilitate the acquisition or construction of residential real property intended to be occupied by the borrower. All bridge loans shall be offered under the following terms and conditions:

       (1) the loan may be prepaid by the borrower at any time, without penalty; and

       (2) the ballon payment, upon coming due, is allowed to be extended one time at the borrower's request for a period of three months, provided that the borrower continues to make monthly installments set forth in the original loan agreement.

Renumber sections to conform.

Amend title to conform.

 

WILLIAM HERBKERSMAN for Committee.

 

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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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