S.C. Code Ann. § 48-59-80 – Interests in lands to be held by eligible trust fund recipients; mortgages; insurance; rights of fee simple title owners

(A) The interests in lands acquired with funds from the trust fund must be held by an eligible trust fund recipient.
(B) The bank may not hold or possess any interest in land or other interest in real property, except for mortgage interests as security for loans made from the trust fund as provided for in subsection (J), and leasehold interests in office space secured for bank operations and staff.
(C) The bank and eligible trust fund recipients receiving monies from the trust fund shall retain all records of acquisition of interests in land with trust funds including, but not limited to, surveys, inventories, appraisals, title and title insurance policies, environmental assessments, closing documents, and contracts.
(D) The bank must be named as an insured on a title insurance policy acceptable to the board and obtained by the loan recipient for loans it makes to eligible trust fund recipients. The bank must be indemnified as to title in the amount of any grants it makes to eligible trust fund recipients, and this indemnification must be secured by a title insurance policy acceptable to the board and obtained by the grant recipient. These requirements for title insurance and indemnification as to title may be waived by the board in extraordinary cases where insurable title is unobtainable, the risk of adverse claims to title are small, the land in question presents a particularly valuable conservation opportunity according to the purposes of this chapter and the criteria of Section 48-59-70, and the cost of the interest in land acquired reflects the lack of insurable title.
(E)
1. (1) After an environmental hazard assessment is completed, if the land in question is found to contain an environmental hazard, no disbursement of trust funds for acquisition shall be granted until the land meets all state and federal environmental law or regulation.
2. (2) In order to identify potential liability pursuant to applicable state or federal environmental law or regulation, an environmental hazard assessment must be conducted on lands before the disbursement of trust funds for the acquisition of an interest in such lands.
(F) All interests in lands acquired with trust funds must be held by the eligible trust fund recipient that was approved by the board to acquire the interest in land, except that an interest in land obtained with trust fund money may be assigned from one eligible trust fund recipient to another upon approval of the board by majority vote.
(G)
1. (1) The owner of the fee simple title to property upon which a conservation easement was purchased with trust funds, whether the original owner that conveyed the conservation easement or a successor-in-interest, may reacquire and thereby extinguish the conservation easement if that owner or successor-in-interest determines that the conservation easement no longer exhibits the characteristics that qualified it for acquisition with trust funds and the board, by a majority vote, makes a finding of fact agreeing with that contention. For purposes of this reacquisition, the value of the conservation easement is its fair market value, as determined by current appraisal. The owner of the fee simple title to the subject property or an eligible trust fund recipient aggrieved by the decision of the board under this item may appeal to the Administrative Law Court where the matter must be heard as a contested case.
2. (2) If an eligible trust fund recipient acquires fee simple title to land for conservation purposes with trust funds, that land may not be sold, transferred, assigned, alienated, or converted to a use other than the use set forth in the grant or loan award. However, if the eligible trust fund recipient: (a) determines that the land no longer exhibits the characteristics that qualified it for acquisition with trust funds; and (b) the board by a majority vote, makes a finding of fact agreeing with that contention, then the land may be sold, transferred, assigned, alienated, or converted to another use at its fair market value as determined by current appraisal. An eligible trust fund recipient aggrieved by the decision of the board under this item may appeal to the Administrative Law Court where the matter must be heard as a contested case.
(H) If any interests in lands that have been acquired by an eligible trust fund recipient with trust funds are extinguished, sold, transferred, assigned, alienated, or converted pursuant to subsection (G) of this section, the eligible trust fund recipient extinguishing, selling, transferring, assigning, alienating, or converting the interests in land shall replace them with interests in land of substantially equal current fair market value, with any deficit being made up by contribution to the trust fund. The replacement land must also exhibit characteristics that meet the criteria of this chapter. The board must verify that suitable replacement interests in lands have been identified and will be obtained before authorizing that any interest in land purchased with monies from the trust fund be extinguished, sold, transferred, assigned, alienated, or converted. Where replacement in whole or in part is impossible, funds realized which are not used for replacement interests in land must be credited to the trust fund. Where funding for an original acquisition was from multiple sources, funds realized must be credited to the trust fund under this subsection in proportion to the contribution that trust funds made to the original acquisition.
(I) Interests in land acquired with trust funds must be managed and maintained in order to perpetuate the conservation, natural, historical, open space, and recreational uses or values for which they were originally acquired. Uses which are adverse to the original purposes for which the interests in land were acquired with trust funds are not permitted without securing a:
1. (1) two-thirds vote of the board, following a finding of fact that the land no longer exhibits the characteristics that qualified it for acquisition with funds from the fund; and
2. (2) majority vote of the State Budget and Control Board.
(J) Loans made from the trust fund must be secured by mortgages upon the subject properties. Any funds received from foreclosure proceedings upon these mortgages must be deposited in the trust fund for subsequent distribution as grants or loans according to the provisions of this chapter. Notwithstanding the provisions of subsection (B), the bank may accept a deed in lieu of foreclosure or as a result of foreclosure proceedings, for land in which it held a mortgage interest by virtue of awarding a loan as provided for in this chapter. However, upon receiving such a deed the bank must as soon as practicable either transfer the property to an appropriate eligible trust fund recipient, or sell the land and deposit the proceeds in the trust fund for subsequent distribution as grants or loans according to the provisions of this chapter. If the bank sells the land, it may first donate a conservation easement upon the land to an eligible trust fund recipient before the sale.
(K) Where a trust fund grant is used to acquire fee simple title to land, public access, and use of the land must be permitted, with this access and use being subject only to those rules, regulations, permits, or fees as are reasonable and consistent with the conservation purposes for which the land was acquired.
(L) Notwithstanding any other provision of this chapter, including requirements for board approval for disposing of interests in land acquired with trust funds, an interest in land acquired with trust funds may be condemned under Chapter 2 of Title 28, the South Carolina Eminent Domain Procedures Act. The proceeds from any such condemnation proceeding must be credited to the trust fund in proportion to the contribution that trust funds made to the original acquisition.