Bridge Loans, the official text

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A172, R151, S787)

AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 37-3-110 SO AS TO DEFINE BRIDGE LOANS; AND BY AMENDING SECTION 37-3-402, RELATING TO BALLOON PAYMENTS, SO AS TO PROVIDE THAT THIS SECTION DOES NOT APPLY TO BRIDGE LOANS.

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

Bridge loan

SECTION 1. Chapter 3, Title 37 of the S.C. Code is amended by adding:

Section 37-3-110. "Bridge loan" means a consumer loan with a maturity of less than twelve months to facilitate the acquisition or construction of residential real property intended to be occupied by the borrower. All bridge loans shall be offered under the following terms and conditions:

(1) the loan may be prepaid by the borrower at any time, without penalty; and

(2) the balloon payment, upon coming due, is allowed to be extended one time at the borrower's request for a period of three months, provided that the borrower continues to make monthly installments set forth in the original loan agreement.

Balloon payments

SECTION 2. Section 37-3-402(2) of the S.C. Code is amended to read:

(2) This section does not apply to:

(a) a transaction pursuant to a revolving loan account;

(b) a transaction to the extent that the payment schedule is adjusted to the seasonal or irregular income or scheduled payments or obligations of the consumer;

(c) a credit transaction to the extent a formula for determining the rate of the loan finance charge and any change in the amount of payment upon renegotiation or refinancing is specified in the agreement between the parties or is an alternative mortgage instrument;

(d) a transaction of a class defined by rule of the administrator as not requiring for the protection of the consumer his right to refinance as provided in this section; or

(e) bridge loans.

Time effective

SECTION 3. This act takes effect upon approval by the Governor.

Ratified the 14th day of May, 2026.

Approved the 18th day of May, 2026.

__________