A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 29-1-70 SO AS TO PROVIDE A MANDATORY MINIMUM GRACE PERIOD OF TWENTY DAYS FOR A MORTGAGE PAYMENT, TO DEFINE THE TERM "GRACE PERIOD", AND TO PROVIDE THAT THIS SECTION DOES NOT APPLY TO A SIMPLE INTEREST OR OTHER MORTGAGE IN WHICH INTEREST ACCRUES DAILY.

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

SECTION 1.   Chapter 1, Title 29 of the S.C. Code is amended by adding:

   Section 29-1-70.   (A)(1) A mortgagee in this State is entitled to a grace period of at least twenty days following the due date of the loan payment. The terms of a note securing a mortgage issued in this State shall provide the specific grace period allowed, regardless of whether the twenty-day period required by this section is the only grace period allowed or if more than this minimum twenty-day period is allowed.

      (2) For the purposes of this section, "grace period" means the period of time during which payment on a mortgage loan may be made after its due date without incurring a late penalty.

   (B) The provisions of this section apply only to a mortgage on which interest is calculated monthly and do not apply to a simple interest mortgage or other mortgage in which interest accrues daily.

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

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