Current Status Bill Number:119 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970114 Primary Sponsor:Rose All Sponsors:Rose Drafted Document Number:s-res\rose\res1089.mtr Residing Body:Senate Current Committee:Banking and Insurance Committee 02 SBI Subject:Real estate mortgage loan, escrow account, interest payments; property, banks
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ Senate 19970114 Introduced, read first time, 02 SBI referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND CHAPTER 3, TITLE 29, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 29-3-110, SO AS TO PROVIDE THAT ANY PERSON MAKING A FIRST MORTGAGE REAL ESTATE LOAN WHO REQUIRES THE BORROWER TO HAVE AN ESCROW ACCOUNT AS A CONDITION OF THE LOAN SHALL PAY INTEREST ON AT LEAST NINETY-FIVE PERCENT OF THE FUNDS IN THE ESCROW ACCOUNT AT THE SAME RATE AS CHARGED ON THE PRINCIPAL OF THE MORTGAGE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 3, Title 29 of the 1976 Code is amended by adding:
"Section 29-3-110. A person making a first mortgage real estate loan in this State and a subsequent assignee of that loan, where an escrow account for insurance, taxes, or other similar items is required as a condition of the loan, shall pay interest on at least ninety-five percent of the funds held in escrow at the same rate as charged on the principal of the mortgage."
SECTION 2. This act takes effect July 1, 1997.