H 4004 General Bill, By Howard
 A BILL TO AMEND SECTION 37-3-413, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO A SHORT-TERM VEHICLE SECURED LOAN, SO AS TO PROVIDE THAT THE
 SECURED PARTY'S EXCLUSIVE REMEDY IN THE EVENT OF DEFAULT IS REPOSSESSION, BY
 JUDICIAL PROCESS AND IN THE PRESENCE OF A LAW ENFORCEMENT OFFICER, AND SALE
 AND TO REQUIRE THE SECURED PARTY TO REMIT THE EXCESS DERIVED FROM THE SALE TO
 THE BORROWER.

   04/27/05  House  Introduced and read first time HJ-156
   04/27/05  House  Referred to Committee on Judiciary HJ-156

TO AMEND SECTION 37-3-413, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A SHORT-TERM VEHICLE SECURED LOAN, SO AS TO PROVIDE THAT THE SECURED PARTY'S EXCLUSIVE REMEDY IN THE EVENT OF DEFAULT IS REPOSSESSION, BY JUDICIAL PROCESS AND IN THE PRESENCE OF A LAW ENFORCEMENT OFFICER, AND SALE AND TO REQUIRE THE SECURED PARTY TO REMIT THE EXCESS DERIVED FROM THE SALE TO THE BORROWER.

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

SECTION    1.    Section 37-3-413(5) of the 1976 Code, as added by Act 42 of 2003, is amended to read:

"(5)(a)    Except in the event of fraud by the borrower, if a borrower defaults in the repayment of a short-term vehicle secured loan, the lender's sole remedy is to seek possession, pursuant to judicial process and in the presence of a member of law enforcement, and sale of the motor vehicle securing the loan. and the The lender may not pursue the borrower personally in an action for repayment of the loan or for any deficiency after sale.

(b)    Notwithstanding this section, the The lender must return to the borrower any surplus obtained after sale in excess of the amount owed on the loan and reasonable expenses of repossession and sale in accordance with Title 36, Chapter 9."

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