Current Status Bill Number:496 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970306 Primary Sponsor:Elliott All Sponsors:Elliott Drafted Document Number:res1196.de Residing Body:Senate Current Committee:Labor, Commerce and Industry Committee 12 SLCI Subject:Real estate trust funds may be placed in interest-bearing accounts; Property
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ Senate 19970306 Introduced, read first time, 12 SLCI referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND CHAPTER 57, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-57-290, SO AS TO PROVIDE THAT REAL ESTATE TRUST FUNDS MAY BE PLACED IN INTEREST-BEARING ACCOUNTS, THAT INTEREST EARNED SHALL BELONG TO THE OWNER OF THE FUNDS UNLESS OTHERWISE AGREED TO IN WRITING, THAT SUCH WRITING SHALL BE A SEPARATE DOCUMENT STATING THAT THE OWNER OF THE FUNDS HAS BEEN INFORMED THAT INTEREST EARNED ON HIS FUNDS SHALL ACCRUE TO HIS BENEFIT BUT THAT THE OWNER DESIRES THE INTEREST TO GO TO ANOTHER PARTY, AND THAT THIS REQUIREMENT SHALL NOT APPLY TO RENTAL MONIES WHERE THOSE MONIES ARE SUBJECT TO THE SALES TAX ON ACCOMMODATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 57, Title 40 of the 1976 Code is amended by adding:
"Section 40-57-290. Notwithstanding any other provision of law, real estate trust funds may be placed in interest-bearing accounts in insured banks and savings and loan institutions. Interest earned shall belong to the owner of the funds, unless otherwise agreed to in writing. Such writing shall not be included as part of a pre-printed contract form but shall be a separate document stating that the owner of the funds has been informed that interest earned on his funds shall accrue to his benefit but that the owner of the funds nevertheless desires the interest to go to another party; however, this requirement shall not apply to rental monies held in trust, provided that those monies are subject to the South Carolina sales tax on accommodations as provided by Section 12-36-920."
SECTION 2. This act takes effect upon approval by the Governor.