§ 36-9-410. Unlawful sale or disposal of personal property subject to security interest; exceptions; penalties.

351 words·~2 min read·/sc/title-36-commercial-code/chapter-9/commercial-code-secured-transactions/36-9-410·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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.