2001-2002 Bill 3553: Postmark Prompt Payment Act, Banks and Savings and Loan Associations

1 BIL: 3553 2 TYP: General Bill GB 3 INB: House 4 IND: 20010214 5 PSP: Simrill 6 SPO: Simrill 7 DDN: l:\council\bills\gjk\20210sd01.doc 8 CBN: 3 9 RBY: House 10 COM: Labor, Commerce and Industry Committee 26 HLCI 11 SUB: Postmark Prompt Payment Act, Banks and Savings and Loan Associations, 12 Consumer Affairs, Businesses 13 14 15 16 HST: 17 18 Body Date Action Description Com Leg Involved 19 ______20 ------20010214 Companion Bill No. 3 21 House 20010214 Introduced, read first time, 26 HLCI 22 referred to Committee 23 24 25 Versions of This Bill 26 27 28 29 30 TXT: 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND TITLE 34, CODE OF LAWS OF SOUTH 12 CAROLINA, 1976, RELATING TO BANKING, FINANCIAL 13 INSTITUTIONS, AND MONEY, BY ADDING CHAPTER 38 14 SO AS TO ENACT THE “POSTMARK PROMPT PAYMENT 15 ACT”. 16 17 Be it enacted by the General Assembly of the State of South 18 Carolina: 19 20 SECTION 1. Title 34 of the 1976 Code is amended by adding: 21 22 “CHAPTER 38 23 24 Postmark Prompt Payment Act 25 26 Section 34-38-10. This chapter is known and may be cited as 27 the ‘Postmark Prompt Payment Act’. 28 29 Section 34-38-20. (A) If any payment required to be made on 30 or before a prescribed date is delivered after that date by the 31 United States Postal Service to the payee, the payment is deemed 32 to have been received by the payee on the date of the Postal 33 Service’s postmark stamped on the envelope or other cover in 34 which the payment is mailed. 35 (B) Subsection (A) applies only with respect to a payment: 36 (1) which is a payment on a consumer credit transaction 37 arising under this title; 38 (2) which is a payment on a lender credit card or similar 39 arrangement; 40 (3) which is a payment on a transaction arising under Chapter 41 29 of Title 34; or

1 [3553] 1 1 (4) which is a payment on an agreement which is secured by 2 a first lien or junior lien on the consumer’s principal dwelling or 3 primary residence. 4 (C) Subsection (A) does not apply with respect to any payment: 5 (1) which is required by law, regulation, or contract to be 6 delivered by any method other than mail; or 7 (2) which is subject to any other provision of South Carolina 8 or federal law specifying how a postmark date must be used in 9 determining the date on which the payment is deemed to have been 10 delivered or made. 11 (D) Subsection (A) applies only if: 12 (1) the postmark date falls on or before the prescribed date 13 for making the payment; and 14 (2) the payment was deposited on or before that date in the 15 mail in the United States in an envelope or under other appropriate 16 cover, postage prepaid, properly addressed to the payee. 17 (E) Subsection (A) does not apply in the case of a postmark not 18 made by the United States Postal Service. 19 (F) For purposes of this section, the term ‘payee’, as used with 20 respect to a payment, includes any person authorized to receive the 21 payment.” 22 23 SECTION 2. This act applies with respect to loans, accounts, 24 credit cards, transactions, and agreements transacted, opened, 25 entered into, renewed, reissued, or refinanced on or after the 26 effective date of this act. This act applies with respect to any 27 mailing postmarked after the end of the ninety-day period 28 beginning on the effective date of this act. 29 30 SECTION 3. This act takes effect upon approval by the Governor. 31 ----XX----

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