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Indicates Matter Stricken
Indicates New Matter
AMENDED
April 21, 2004
H. 4470
Introduced by Reps. Harrison, Altman, Cotty, Kirsh and Owens
S. Printed 4/21/04--H.
Read the first time January 13, 2004.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-13-305 SO AS TO CREATE THE OFFENSE OF DEFRAUDING SECURED CREDITORS AND TO PROVIDE A PENALTY.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Part 4, Chapter 9, Title 36 of the 1976 Code is amended by adding:
"Section 36-9-410. (A) Notwithstanding Section 36-9-401, a person who intentionally or wilfully sells or disposes of personal property that is subject to a security interest, with the intent to defraud the secured party, without the written consent of the secured party and without paying the debt secured by the security interest within ten days after sale or disposal or, in that time, depositing the amount of the debt with the clerk of the court of common pleas for the county in which the secured party resides, is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned for not more than one year, or both.
(B) This section does not apply:
(1) if the sale is made without the knowledge or notice of the security interest by the person selling the property;
(2) to the granting of subsequent security interests;
(3) if the loan secured by the personal property includes a charge for nonfiling insurance; or
(4) to personal property titled by the Department of Public Safety of the Natural Resources Enforcement Division of the South Carolina Department of Natural Resources.
(C) If the value of the property is less than seven thousand five hundred dollars, the offense is triable in the magistrate's court and the punishment must be not more than thirty days or a fine of five hundred dollars, or both. Otherwise, the offense is triable in the court of general sessions, subject to transfer under Section 22-3-545."
SECTION 2. This act takes effect upon approval by the Governor.
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