South Carolina S 787: Bridge Loans

Bill Text

2025-2026 Bill 787 Text of Previous Version (May. 07, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 787

Indicates Matter Stricken
Indicates New Matter

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

Indicates Matter Stricken

Indicates New Matter

Amended

May 7, 2026

S. 787

Introduced 
by Senator Gambrell 

S. Printed 5/7/26--H.

Read the first time February 25, 2026

________

A bill

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.

 Amend Title To Conform

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

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.

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; or

 (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.

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

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This web page was last updated on May 07, 2026 at 05:47 PM