South Carolina Code of Regulations
Chapter 15 - STATE BOARD OF FINANCIAL INSTITUTIONS CONSUMER FINANCE DIVISION
Article 1 - BANKING, COMMERCIAL PAPER AND FINANCE
Section 15-24 - Borrower's Preference Re Attorney and Insurance

Sections 29-3-210 to 29-3-240 of the 1976 Code provide in part, that, any bank, mortgage banker, insurance company, building and loan association, or other lending institution that makes a loan to a borrower in the amount of five thousand dollars ($5,000.00), or more that is secured by a real estate mortgage, the lender shall ascertain the preference of the borrower as to the legal counsel that shall be employed to represent the borrower in all matters of the transaction and the insurance agent to furnish required insurance in connection with the loan and shall comply with such preference.

Sections 29-3-210 to 29-3-240 of the 1976 Code also provide that the State Board of Bank Control shall inquire into these matters, shall provide for implementation of said sections, and promulgate rules and regulations therefor.

It is the intention of the Board of Bank Control that Sections 29-3-210 to 29-3-240 of the 1976 Code be complied with by all financial institutions under its supervision--banks, savings and loan and building and loan associations, and credit unions--and has instructed examiners to determine during the course of the examinations if management is complying with said sections. To provide further for implementation of said sections, the Board of Bank Control by this Regulation is requiring that the Boards of Directors of all financial institutions under its supervision, pass a resolution and record it in the minute book of the institution to the effect that the institution is complying with said sections and that all loan officers of the institution have been instructed to comply with said sections.

Statutory Authority: 1976 Code Sections 29-3-210 through 29-3-240