Bill Text: GA SB365 | 2011-2012 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Property; collected funds; change prov.; residential real property; provide form Acknowledgment and Waiver of Borrower's Rights

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2012-07-01 - Effective Date [SB365 Detail]

Download: Georgia-2011-SB365-Comm_Sub.html

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12 LC 29 5279S

The House Committee on Judiciary offers the following substitute to SB 365:

A BILL TO BE ENTITLED
AN ACT

To amend Code Section 44-14-13 of the Official Code of Georgia Annotated, relating to disbursement of settlement proceeds, so as to change the definition of "settlement agent"; to change provisions relating to the applicability of the Code section and the availability of damages for violating the Code section; to provide for criminal penalties; to provide for exceptions; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Code Section 44-14-13 of the Official Code of Georgia Annotated, relating to disbursement of settlement proceeds, is amended by revising paragraph (10) of subsection (a) and subsections (b) and (e) and by adding two new subsections (f) and (g) to read as follows:

"(10) 'Settlement agent' means the person lender or an active member of the State Bar of Georgia responsible for conducting the settlement and disbursement of the settlement proceeds and includes any individual, corporation, partnership, or other entity conducting the settlement and disbursement of the loan funds."

"(b) This Code section applies shall apply only to transactions involving purchase money loans made by a lender, or loans made to refinance, directly or indirectly, a purchase money loan made by another lender refinance loans made by the current or a new lender, which loans will be secured by deeds to secure debt or mortgages on real estate within the State of Georgia containing not more than four residential dwelling units, whether or not such deeds to secure debt or mortgages have a first-priority status."

"(e) Any party violating this Code section shall be liable to any other party suffering a loss due to such violation for such other party's actual damages plus reasonable attorneys' fees. In addition, any party violating this Code section shall pay to the borrower party suffering the loss an amount of money equal to $1,000.00 or double the amount of interest payable on the loan for the first 60 days after the loan closing, whichever is greater.

(f) Any individual, corporation, partnership, or other entity conducting the settlement and disbursement of loan funds, when he, she, or it is not the settlement agent, shall be guilty of a misdemeanor.

(g) Nothing contained in this Code section shall prevent a real estate broker or real estate salesperson from exercising the rights and providing the duties and services specified by Chapter 40 of Title 43."

SECTION 2.

All laws and parts of laws in conflict with this Act are repealed.