USA – SOUTH CAROLINA Law and Practice Contributed by: Matt Norton, Parker Havis and Aaron Lay, K&L Gates
gage indebtedness. In order to proceed with foreclo - sure or collection activities, a lender must have this automatic stay modified by the bankruptcy court. A mortgage lender is deemed to be a secured creditor to the extent of the value of its collateral. As part of the bankruptcy process, the repayment terms of the mortgage indebtedness may be extended for a longer period and the interest rate may be modified, but in theory, the amended repayment terms must grant the lender on a present value basis the equivalent value of its mortgage interest. Mortgages may be set aside in bankruptcy if the mortgage was granted within the period immediately preceding the bankruptcy filing as security for a pre- existing unsecured debt, if the mortgage lender did not provide reasonably equivalent value to the bor - rower in exchange for the granting of the mortgage, or if there is a significant delay in the recording of the mortgage. A mortgage may also be set aside in bank - ruptcy if it is not timely and properly filed and indexed in the real property records so as to cause the mort - gage to have priority over competing lien creditors. The most important actions a mortgagor lender may take to protect itself from bankruptcy risks is to ensure that the mortgage is recorded in a timely manner and properly indexed in the appropriate recording office. 3.10 Taxes on Loans There is no existing or pending legislation in South Carolina that proposes to impose a mortgage record - ing tax, or tax on a pledge of share, or membership interests in the borrower in connection with a mez - zanine loan.
ted uses, lot coverage limits, setback requirements and other development standards. These controls are generally administered and enforced by local planning and zoning departments. Construction activities are governed by adopted building codes, which establish standards for building elevation, general structural matters, loadbearing and wind resistance, and electrical and plumbing require - ments. Building inspection departments are responsi - ble for enforcing these requirements. Land disturbance and construction permits must be obtained prior to construction, and periodic governmental inspections are required during construction to verify compliance. Building code compliance is also required for major refurbishments of existing structures. Some jurisdictions additionally maintain architectural review boards or equivalent bodies with authority over the design and exterior appearance of new and reno - vated structures. Other regulatory approvals may be required depend - ing on project characteristics. Construction of “curb cuts” granting physical access to existing public roads requires approval of the applicable department of transportation. Where regulated wetlands are pre - sent, development plans generally require approval from the US Army Corps of Engineers. Approval of water, sewer and stormwater retention and disper - sal requirements is regulated by the South Carolina Department of Health and Environmental Control and local governments. 4.2 Development Process, Challenges and Enforcement If a proposed project conforms to existing zoning codes, development typically begins with the sub - mission of a site plan setting forth the basic layout of the project to the applicable planning and zoning department. The site plan may include civil engineer - ing plans identifying regulated wetlands, stormwater retention and dispersal systems, utility infrastructure and building footprints. Additional approvals may be required in connection with stormwater systems, curb cuts, and wetlands delineation and impairment.
4. Planning and Zoning 4.1 Planning and Zoning Framework
Most jurisdictions operate under a structured planning and zoning framework administered by local govern - mental authorities. A local planning commission typi - cally undertakes a continued planning programme for the physical and economic growth of the jurisdiction. Land use and development are regulated through zon - ing and land-use ordinances, which establish permit -
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