reglab/housing_qa huggingface dataset:
SC Code § 36-9-335 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-335. Accessions.

 (a) A security interest may be created in an accession and continues in collateral that becomes an accession.  (b) If a security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral.  (c) Except as otherwise provided in subsection (d), the other provisions of this part determine the priority of a security interest in an accession.  (d) A security interest in an accession is subordinate to a security interest in the whole which is perfected by compliance with the requirements of a certificate-of-title statute under Section 36-9-311(b).  (e) After default, subject to Part 6, a secured party may remove an accession from other goods if the security interest in the accession has priority over the claims of every person having an interest in the whole.  (f) A secured party that removes an accession from other goods under subsection (e) shall promptly reimburse any holder of a security interest or other lien on, or owner of, the whole or of the other goods, other than the debtor, for the cost of repair of any physical injury to the whole or the other goods. The secured party need not reimburse the holder or owner for any diminution in value of the whole or the other goods caused by the absence of the accession removed or by any necessity for replacing it. A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate assurance for the performance of the obligation to reimburse.  HISTORY: 2001 Act No. 67, Section 12.
SC Code § 36-9-336 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-336. Commingled goods.

 (a) In this section, "commingled goods" means goods that are physically united with other goods in such a manner that their identity is lost in a product or mass.  (b) A security interest does not exist in commingled goods as such. However, a security interest may attach to a product or mass that results when goods become commingled goods.  (c) If collateral becomes commingled goods, a security interest attaches to the product or mass.  (d) If a security interest in collateral is perfected before the collateral becomes commingled goods, the security interest that attaches to the product or mass under subsection (c) is perfected.  (e) Except as otherwise provided in subsection (f), the other provisions of this part determine the priority of a security interest that attaches to the product or mass under subsection (c).  (f) If more than one security interest attaches to the product or mass under subsection (c), the following rules determine priority:  (1) A security interest that is perfected under subsection (d) has priority over a security interest that is unperfected at the time the collateral becomes commingled goods.  (2) If more than one security interest is perfected under subsection (d), the security interests rank equally in proportion to the value of the collateral at the time it became commingled goods.  HISTORY: 2001 Act No. 67, Section 12.
SC Code § 36-9-337 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-337. Priority of security interests in goods covered by certificate of title.

 If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this State issues a certificate of title that does not show that the goods are subject to the security interest or contain a statement that they may be subject to security interests not shown on the certificate:  (1) a buyer of the goods, other than a person in the business of selling goods of that kind, takes free of the security interest if the buyer gives value and receives delivery of the goods after issuance of the certificate and without knowledge of the security interest; and  (2) the security interest is subordinate to a conflicting security interest in the goods that attaches, and is perfected under Section 36-9-311(b), after issuance of the certificate and without the conflicting secured party's knowledge of the security interest.  HISTORY: 2001 Act No. 67, Section 12.
SC Code § 36-9-338 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-338. Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information.

 If a security interest or agricultural lien is perfected by a filed financing statement providing information described in Section 36-9-516(b)(5) which is incorrect at the time the financing statement is filed:  (1) the security interest or agricultural lien is subordinate to a conflicting perfected security interest in the collateral to the extent that the holder of the conflicting security interest gives value in reasonable reliance upon the incorrect information; and  (2) a purchaser, other than a secured party, of the collateral takes free of the security interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect information, the purchaser gives value and, in the case of tangible chattel paper, tangible documents, goods, instruments, or a security certificate, receives delivery of the collateral.  HISTORY: 2001 Act No. 67, Section 12; 2014 Act No. 213 (S.343), Section 44, eff October 1, 2014.  Editor's Note  2014 Act No. 213, Section 51, provides as follows:  "SECTION 51. This act becomes effective on October 1, 2014. It applies to transactions entered into and events occurring after that date."  Effect of Amendment  2014 Act No. 213, Section 44, in subsection (2), inserted "tangible" before "chattel paper" and "documents".
SC Code § 36-9-339 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-339. Priority subject to subordination.

 This chapter does not preclude subordination by agreement by a person entitled to priority.  HISTORY: 2001 Act No. 67, Section 12.  Subpart 4  Rights of Bank
SC Code § 36-9-340 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-340. Effectiveness of right of recoupment or set-off against deposit account.

 (a) Except as otherwise provided in subsection (c), a bank with which a deposit account is maintained may exercise any right of recoupment or set-off against a secured party that holds a security interest in the deposit account.  (b) Except as otherwise provided in subsection (c), the application of this chapter to a security interest in a deposit account does not affect a right of recoupment or set-off of the secured party as to a deposit account maintained with the secured party.  (c) The exercise by a bank of a set-off against a deposit account is ineffective against a secured party that holds a security interest in the deposit account which is perfected by control under Section 36-9-104(a)(3), if the set-off is based on a claim against the debtor.  HISTORY: 2001 Act No. 67, Section 12.
SC Code § 36-9-341 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-341. Bank ' s rights and duties with respect to deposit account.

 Except as otherwise provided in Section 36-9-340(c), and unless the bank otherwise agrees in an authenticated record, a bank's rights and duties with respect to a deposit account maintained with the bank are not terminated, suspended, or modified by:  (1) the creation, attachment, or perfection of a security interest in the deposit account;  (2) the bank's knowledge of the security interest; or  (3) the bank's receipt of instructions from the secured party.  HISTORY: 2001 Act No. 67, Section 12.
SC Code § 36-9-342 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-342. Bank ' s right to refuse to enter into or disclose existence of control agreement.

 This chapter does not require a bank to enter into an agreement of the kind described in Section 36-9-104(a)(2), even if its customer so requests or directs. A bank that has entered into such an agreement is not required to confirm the existence of the agreement to another person unless requested to do so by its customer.  HISTORY: 2001 Act No. 67, Section 12.
SC Code § 36-9-401 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-401. Alienability of debtor ' s rights.

 (a) Except as otherwise provided in subsection (b) and Sections 36-9-406, 36-9-407, 36-9-408, and 36-9-409, whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this chapter.  (b) An agreement between the debtor and secured party which prohibits a transfer of the debtor's rights in collateral or makes the transfer a default does not prevent the transfer from taking effect.  HISTORY: 1962 Code Section 10.9-401; 1966 (54) 2716; 1988 Act No. 494, Section 5; 1997 Act No. 34, Section 1; 2001 Act No. 67, Section 12.
SC Code § 36-9-402 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-402. Secured party not obligated on contract of debtor or in tort.

 The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.  HISTORY: 1962 Code Section 10.9-402; 1966 (54) 2716; 1988 Act No. 494, Section 5; 1992 Act No. 357, Section 1; 2001 Act No. 67, Section 12.
SC Code § 36-9-403 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-403. Agreement not to assert defenses against assignee.

 (a) In this section, "value" has the meaning provided in Section 36-3-303.  (b) Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may have against the assignor is enforceable by an assignee that takes an assignment:  (1) for value;  (2) in good faith;  (3) without notice of a claim of a property or possessory right to the property assigned; and  (4) without notice of a defense or claim in recoupment of the type that may be asserted against a person entitled to enforce a negotiable instrument under Section 36-3-305(2).  (c) Subsection (b) does not apply to defenses of a type that may be asserted against a holder in due course of a negotiable instrument under Section 36-3-305(2)(a)-(e).  (d) In a consumer transaction, if a record evidences the account debtor's obligation, law other than this chapter requires that the record include a statement to the effect that the rights of an assignee are subject to claims or defenses that the account debtor could assert against the original obligee, and the record does not include such a statement:  (1) the record has the same effect as if the record included such a statement; and  (2) the account debtor may assert against an assignee those claims and defenses that would have been available if the record included such a statement.  (e) This section is subject to law other than this chapter which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.  (f) Except as otherwise provided in subsection (d), this section does not displace law other than this chapter which gives effect to an agreement by an account debtor not to assert a claim or defense against an assignee.  HISTORY: 1962 Code Section 10.9-403; 1966 (54) 2716; 1967 (55) 862; 1968 (55) 3037; 1978 Act No. 644, Part II, Section 7; 1985 Act No. 201, Part II, Section 7A; 1988 Act No. 494, Section 5; 2001 Act No. 67, Section 12.
SC Code § 36-9-404 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-404. Rights acquired by assignee; claims and defenses against assignee.

 (a) Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (b) through (e), the rights of an assignee are subject to:  (1) all terms of the agreement between the account debtor and assignor and any defense or claim in recoupment arising from the transaction that gave rise to the contract; and  (2) any other defense or claim of the account debtor against the assignor which accrues before the account debtor receives a notification of the assignment authenticated by the assignor or the assignee.  (b) Subject to subsection (c) and except as otherwise provided in subsection (d), the claim of an account debtor against an assignor may be asserted against an assignee under subsection (a) only to reduce the amount the account debtor owes.  (c) This section is subject to law other than this chapter which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.  (d) In a consumer transaction, if a record evidences the account debtor's obligation, law other than this chapter requires that the record include a statement to the effect that the account debtor's recovery against an assignee with respect to claims and defenses against the assignor may not exceed amounts paid by the account debtor under the record, and the record does not include such a statement, the extent to which a claim of an account debtor against the assignor may be asserted against an assignee is determined as if the record included such a statement.  (e) This section does not apply to an assignment of a health-care-insurance receivable.  HISTORY: 1962 Code Section 10.9-404; 1966 (54) 2716; 1967 (55) 604; 1978 Act No. 644, Part II, Section 7; 1982 Act No. 385, Section 57(2)(e); 1985 Act No. 201, Part II, Section 7B; 1988 Act No; 494, Section 5; 2001 Act No. 67, Section 12.
SC Code § 36-9-405 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-405. Modification of assigned contract.

 (a) A modification of or substitution for an assigned contract is effective against an assignee if made in good faith. The assignee acquires corresponding rights under the modified or substituted contract. The assignment may provide that the modification or substitution is a breach of contract by the assignor. This subsection is subject to subsections (b) through (d).  (b) Subsection (a) applies to the extent that:  (1) the right to payment or a part thereof under an assigned contract has not been fully earned by performance; or  (2) the right to payment or a part thereof has been fully earned by performance and the account debtor has not received notification of the assignment under Section 36-9-406(a).  (c) This section is subject to law other than this chapter which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.  (d) This section does not apply to an assignment of a health-care-insurance receivable.  HISTORY: 1962 Code Section 10.9-405; 1966 (54) 2716; 1967 (55) 605; 1978 Act No. 644, Part II, Section 7; 1985 Act No. 201, Part II, Sections 7C, 7D; 1988 Act No. 494, Section 5; 2001 Act No. 67, Section 12.
SC Code § 36-9-407 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-407. Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest.

 (a) Except as otherwise provided in subsection (b), a term in a lease agreement is ineffective to the extent that it:  (1) prohibits, restricts, or requires the consent of a party to the lease to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, an interest of a party under the lease contract or in the lessor's residual interest in the goods; or  (2) provides that the assignment or transfer or the creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the lease.  (b) Except as otherwise provided in Section 36-2A-303(7), a term described in subsection (a)(2) is effective to the extent that there is:  (1) a transfer by the lessee of the lessee's right of possession or use of the goods in violation of the term; or  (2) a delegation of a material performance of either party to the lease contract in violation of the term.  (c) The creation, attachment, perfection, or enforcement of a security interest in the lessor's interest under the lease contract or the lessor's residual interest in the goods is not a transfer that materially impairs the lessee's prospect of obtaining return performance or materially changes the duty of or materially increases the burden or risk imposed on the lessee within the purview of Section 36-2A-303(4) unless, and then only to the extent that, enforcement actually results in a delegation of material performance of the lessor.  HISTORY: 1962 Code Section 10.9-407; 1966 (54) 2716; 1978 Act No. 644, Part II, Section 7; 1985 Act No. 201, Part II, Section 7F; 1988 Act No. 494, Section 5; 2001 Act No. 67, Section 12.
SC Code § 36-9-409 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-409. Restrictions on assignment of letter-of-credit rights ineffective.

 (a) A term in a letter of credit or a rule of law, statute, regulation, custom, or practice applicable to the letter of credit which prohibits, restricts, or requires the consent of an applicant, issuer, or nominated person to a beneficiary's assignment of or creation of a security interest in a letter-of-credit right is ineffective to the extent that the term or rule of law, statute, regulation, custom, or practice:  (1) would impair the creation, attachment, or perfection of a security interest in the letter-of-credit right; or  (2) provides that the assignment or the creation, attachment, or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the letter-of-credit right.  (b) To the extent that a term in a letter of credit is ineffective under subsection (a) but would be effective under law other than this chapter or a custom or practice applicable to the letter of credit, to the transfer of a right to draw or otherwise demand performance under the letter of credit, or to the assignment of a right to proceeds of the letter of credit, the creation, attachment, or perfection of a security interest in the letter-of-credit right:  (1) is not enforceable against the applicant, issuer, nominated person, or transferee beneficiary;  (2) imposes no duties or obligations on the applicant, issuer, nominated person, or transferee beneficiary; and  (3) does not require the applicant, issuer, nominated person, or transferee beneficiary to recognize the security interest, pay or render performance to the secured party, or accept payment or other performance from the secured party.  HISTORY: 2001 Act No. 67, Section 12.
SC Code § 36-9-410 (2021)
2021 South Carolina Code of Laws|Title 36 - Commercial Code|Chapter 9 - Commercial Code - Secured Transactions|Section 36-9-410. Unlawful sale or disposal of personal property subject to security interest; exceptions; penalties.

 (A) Notwithstanding Section 36-9-401, a person who intentionally or wilfully sells or disposes of personal property that is subject to a perfected security interest, with the intent to defraud the secured party, without the written consent of the secured party and without paying the debt secured by the perfected security interest within ten days after sale or disposal or, in that time, depositing the amount of the debt with the clerk of the court of common pleas for the county in which the secured party resides, is in violation of this section.  (B) This section does not apply:  (1) if the sale is made without the knowledge of or notice of the perfected security interest to the purchaser by the person selling the property;  (2) to the granting of subsequent security interests;  (3) if the loan secured by the personal property includes a charge for nonfiling insurance; or  (4) to personal property titled by the Department of Public Safety or the Law Enforcement Division of the South Carolina Department of Natural Resources.  (C) If the value of the personal property subject to a perfected security interest is worth:  (1) two thousand dollars or less, a person who violates the provisions of this section is guilty of a misdemeanor triable in the magistrates court or the municipal court, notwithstanding the provisions of Sections 22-3-540, 22-3-545, 22-3-550, and 14-25-65, and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than thirty days, or both;  (2) more than two thousand dollars but less than ten thousand dollars, a person who violates the provisions of this section is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years, or both;  (3) ten thousand dollars or more, a person who violates the provisions of this section is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than ten years, or both.  HISTORY: 2004 Act No. 265, Section 1, eff July 6, 2004; 2010 Act No. 273, Section 16.Y, eff June 2, 2010.  Effect of Amendment  The 2010 amendment in subsection (C) rewrote item (1), in item (2) substituted "two thousand" for "one thousand" and "ten thousand" for "five thousand", and in item (3) substituted "ten thousand" for "five thousand".