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					                                 South Carolina General Assembly
                                     115th Session, 2003-2004

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
 3/13/2003 Senate Introduced and read first time SJ-4
 3/13/2003 Senate Referred to Committee on Banking and Insurance SJ-4


VERSIONS OF THIS BILL

3/13/2003
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 9                           A BILL
10
11   TO AMEND SECTION 29-3-310, CODE OF LAWS OF SOUTH
12   CAROLINA,     1976,   RELATING    TO   MORTGAGE
13   SATISFACTION, SO AS TO REQUIRE THAT ANY HOLDER
14   OF RECORD OF A MORTGAGE WHICH HAS BEEN PAID IN
15   FULL MUST ENTER THE SATISFACTION ON THE
16   MORTGAGE IN THE PROPER OFFICE ONCE THE DEBT IS
17   PAID; TO PROVIDE THAT A HOLDER OF THE MORTGAGE
18   MAY ADD A REASONABLE FEE OF TWENTY-FIVE
19   DOLLARS TO COVER THE COSTS OF PROCESSING AND
20   RECORDING OF THE SATISFACTION; TO PROVIDE THAT
21   THE HOLDER OF RECORD MAY MAIL THE DOCUMENTS
22   TO SATISFY THE MORTGAGE BY CERTIFIED MAIL OR
23   SOME OTHER FORM OF DELIVERY; AND TO AMEND
24   SECTION 29-3-320, AS AMENDED, RELATING TO FAILURE
25   TO COMPLY WITH A DEMAND FOR MORTGAGE
26   SATISFACTION, SO AS TO PROVIDE THAT ANY HOLDER
27   OF A MORTGAGE WHO HAS RECEIVED A DEMAND FOR
28   SATISFACTION AND FAILS TO COMPLY WITH SECTION
29   29-3-310 WITHIN NINETY DAYS AFTER RECEIVING A
30   DEMAND FOR SATISFACTION WILL BE LIABLE FOR A
31   PENALTY OF FIVE THOUSAND DOLLARS PLUS ACTUAL
32   DAMAGES, COSTS, AND ATTORNEYS FEES AND IF
33   NON-COMPLIANT FOR AN ADDITIONAL NINETY DAYS,
34   THE AMOUNT OF THE PENALTY MUST BE ONE HALF OF
35   THE PAYOFF OR TWENTY-FIVE THOUSAND DOLLARS,
36   WHICHEVER IS LESS.
37
38   Be it enacted by the General Assembly of the State of South
39   Carolina:
40
41   SECTION 1. Section 29-3-310 of the 1976 Code, as amended by
42   Act 67 of 1999, is further amended to read:

     [486]                        1
 1
 2      “ Section 29-3-310. Any holder of record of a mortgage who
 3   has received full payment or satisfaction or to whom a legal tender
 4   has been made of his debts, damages, costs, and charges secured
 5   by mortgage of real estate shall, at the request by certified mail or
 6   other form of delivery with a proof of delivery of the mortgagor or
 7   of his legal representative or any other person being a creditor of
 8   the debtor or a purchaser under him or having an interest in any
 9   estate bound by the mortgage and on tender of the fees of office for
10   entering satisfaction, within three months after the certified mail,
11   or other form of delivery, with a proof of delivery, request is made,
12   which secures a debt that has been paid in full must enter a
13   satisfaction in the proper office on the mortgage which shall
14   forever thereafter discharge and satisfy the mortgage in the proper
15   office once the debt is paid.
16      Notwithstanding any limitations under Sections 37-2-202 and
17   37-3-202, the holder of record of the mortgage may add a
18   reasonable fee to the amount of the debt, not to exceed twenty-five
19   dollars, to cover the cost of processing and recording the
20   satisfaction or cancellation.
21      Alternatively, if so instructed by the mortgagor or his legal
22   representative, the holder of record may mail the documents
23   satisfying the mortgage to the mortgagor or his legal representative
24   by certified mail, or some other form of delivery which provides
25   proof of delivery.”
26
27   SECTION 2. Section 29-3-320 of the 1976 Code, as amended by
28   Act 67 of 1999, is further amended to read:
29
30      “Section 29-3-320. Any holder of record of a mortgage having
31   who has received such payment, a demand for satisfaction, or
32   tender as aforesaid who shall not, by himself or his attorney, within
33   three months after such by certified mail, or some other form of
34   delivery, with a which provides proof of delivery, request and
35   tender of fees of office, repair to the proper office and enter who
36   fails to comply with Section 29-3-310 within ninety days after
37   receiving the demand for satisfaction as aforesaid shall forfeit and
38   pay to the person aggrieved a sum of money not exceeding
39   one-half of the amount of the debt secured by the mortgage, or
40   twenty thousand dollars, whichever, is less is liable to the owners
41   of the property for a penalty of five thousand dollars, plus actual
42   damages, costs, and attorney’s fees in the discretion of the court, to

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 1   be recovered by action in any court of competent jurisdiction
 2   within the State. And on judgment being rendered for the plaintiff
 3   in any such action, the presiding judge shall order satisfaction to be
 4   entered on the judgment or mortgage aforesaid by the clerk,
 5   register, or other proper officer whose duty it shall be, on receiving
 6   such order, to record it and to enter satisfaction accordingly and if
 7   the non-compliance continues for an additional ninety days or
 8   longer, the amount of the penalty must be up to one-half of the
 9   amount of the payoff, or twenty-five thousand dollars, whichever
10   is less.
11      Notwithstanding any limitations under Sections 37-2-202 and
12   37-3-202, the holder of record of the mortgage may charge a
13   reasonable fee at the time of the satisfaction not to exceed
14   twenty-five dollars to cover the cost of processing and recording
15   the satisfaction or cancellation. If the mortgagor or his legal
16   representative instructs the holder of record of the mortgage that
17   the mortgagor will be responsible for filing the satisfaction, the
18   holder of the mortgage shall mail or deliver the satisfied mortgage
19   to the mortgagor or his legal representative with no satisfaction fee
20   charged.”
21
22   SECTION 3. This act takes effect upon approval by the Governor.
23                            ----XX----
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