S.C. Code Regs. 117-317.1 — Finance Companies and Other Lending Institutions

Finance companies and other lending institutions are deemed to be retailers when making sales of
tangible personal property physically or constructively repossessed in claim and delivery proceedings,
by peaceful surrender, or by any other means whatsoever.
The measure of the tax is the total amount proceeding or accruing from such sales whether the sale
is for cash or is secured by a new conditional sales contract. On assumption agreements the amount to
be included in gross proceeds of sales is the balance in default by the borrower and any down-payment
made by the person assuming the borrower's obligation in exchange for the repossessed property.
This is irrespective of the mechanics used by lenders in transferring title to repossessed property to
new owners.