South Carolina General Assembly
111th Session, 1995-1996

Bill 267

Indicates Matter Stricken
Indicates New Matter 

                    Current Status

Bill Number:                       267
Type of Legislation:               General Bill GB
Introducing Body:                  Senate
Introduced Date:                   19950110
Primary Sponsor:                   Passailaigue 
All Sponsors:                      Passailaigue 
Drafted Document Number:           JUD6012.ELP
Residing Body:                     House
Current Committee:                 Labor, Commerce and Industry
                                   Committee 26 HLCI
Date of Last Amendment:            19960125
Subject:                           Mortgage foreclosures, attorney
                                   fees
History


Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

House   19960213  Introduced, read first time,             26 HLCI
                  referred to Committee
Senate  19960208  Read third time, sent to House
Senate  19960131  Read second time, ordered to
                  third reading with notice of
                  general amendments
Senate  19960125  Amended
Senate  19950309  Committee report: Favorable with         02 SBI
                  amendment
Senate  19950110  Introduced, read first time,             02 SBI
                  referred to Committee
Senate  19941114  Prefiled, referred to Committee          02 SBI
View additional legislative information at the LPITS web site.

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

AMENDED

January 25, 1996

S. 267

Introduced by SENATOR Passailaigue

S. Printed 1/25/96--S.

Read the first time January 10, 1995.

A BILL

TO AMEND ARTICLE 7, CHAPTER 3, TITLE 29, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MORTGAGE FORECLOSURE, BY ADDING SECTION 29-3-800, SO AS TO PROVIDE THAT CONTRACTUAL PROVISIONS FOR ATTORNEY FEES IN THE AMOUNT OF A SPECIFIED PERCENTAGE OF THE BALANCE DUE UPON DEFAULT OF A MORTGAGE OR NOTE ARE UNCONSCIONABLE, THAT IN FORECLOSURE ACTIONS THE COURT MUST MAKE A FINDING AS TO THE REASONABLENESS OF ATTORNEY FEES NOTWITHSTANDING ANY CONTRACTUAL PROVISION THAT WOULD AWARD ATTORNEY FEES AS A SPECIFIED PERCENTAGE OF THE BALANCE DUE UPON DEFAULT, AND THAT PARTIES TO A FORECLOSURE ACTION MAY AGREE TO THE AMOUNT OF ATTORNEY FEES DUE, AND IN THE EVENT THE PARTIES REACH SUCH AN AGREEMENT, THE COURT IS NOT REQUIRED TO MAKE A FINDING AS TO THE REASONABLENESS OF THE ATTORNEY FEES.

Amend Title To Conform

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

SECTION 1. Article 7, Chapter 3, Title 29 of the 1976 Code is amended by adding:

"Section 29-3-800. (A) Contractual provisions for a mortgagee or creditor to obtain attorney fees upon default of a mortgage or note in the amount of a specified percentage of the balance due upon default are unenforceable.

(B) In any foreclosure action in which a mortgagee or creditor is seeking attorney fees pursuant to a contractual provision awarding attorney fees in the amount of a specified percentage of the balance due upon default, the court must make a finding as to the reasonableness of the attorney fees and award only such fees as are reasonable.

(C) Parties to a foreclosure action may agree to the attorney fees due the mortgagee or creditor upon default, and in the event the parties reach such an agreement, the court is not required to make a finding as to the reasonableness of the attorney fees as provided in (B)."

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

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