South Carolina Code of Regulations
Chapter 15 - STATE BOARD OF FINANCIAL INSTITUTIONS CONSUMER FINANCE DIVISION
Article 1 - BANKING, COMMERCIAL PAPER AND FINANCE
Section 15-39Q - Alternative Mortgage Consumer Loans

With respect to a consumer loan (as defined in Consumer Protection Code Sections 37-3-104 and 37-3-105 ) which is secured in whole or in part by a lien on real estate under which the aggregate of all sums advanced or contemplated by the parties in good faith to be advanced will not exceed $100,000.00, state-chartered banks, state-chartered savings and loan associations, and state-chartered credit unions (individually, a "financial institution") are authorized to make alternative mortgage loans (as defined in Consumer Protection Code Section 37-1-301(5) ); provided that, if the rate is variable:

any index to which the variable rate is linked is beyond the control of the financial institution making the loan and is readily available to and verifiable by the borrower, and

disclosures related to rate variations comply with the variable rate disclosure requirements of the Truth in Lending Act ( 15 U.S.C. Sections 1601 et seq.), as implemented by Federal Reserve Board Regulation Z ( 12 C.F.R. Part 226 ), both as amended from time to time. (NOTE: When permitted by Regulation Z, compliance with variable rate mortgage disclosure requirements contained in regulations of other federal agencies, as amended from time to time, such as the disclosure provision of the Adjustable-Rate Mortgage regulation of the Comptroller of the Currency ( 12 C.F.R. Part 29 ) and the home loan disclosure provision of the regulations of the Federal Home Loan Bank Board ( 12 C.F.R. Part 545 ), may be substituted for Regulation Z variable rate disclosures.) Regulation was adopted March 22, 1985.

Statutory Authority: 1976 Code Sections 34-1-60 and 37-3-412