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South Carolina guaranty guide

Personal Guaranty Guide for South Carolina

A borrower-focused guide to South Carolina guaranty exposure, SBA guarantees, confession-of-judgment clauses, and post-default collection risk.

Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team

General information, not legal or financial advice.

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Overview

South Carolina guaranties should be reviewed for unlimited liability, future advances, waiver of defenses, collateral pledges, attorney-fee clauses, and whether the guarantor is released after payoff or business transfer.

South Carolina has a statutory judgment-by-confession procedure and statutory exemptions, but deficiency and guarantor-waiver issues require local review against the exact foreclosure or collateral-sale path.

Enforceability topics to check

Confession of judgment / cognovitHigh confidence

South Carolina Code § 15-35-350 authorizes judgment by confession without action in the prescribed manner. Any guaranty clause using confession or warrant-of-attorney language should be treated as high risk.

S.C. Code Title 15, Chapter 35
Deficiency judgments after collateral saleNeeds lawyer verification

South Carolina mortgage foreclosure, appraisal, and deficiency practice is fact-specific. Guarantors should verify sale procedure, valuation rights, waivers, and separate guaranty liability with local counsel.

South Carolina Code Title 29 — mortgages and liens
Spousal signature and ECOAHigh confidence

South Carolina is not a community-property state. ECOA / Regulation B still limits when a creditor can require a spouse or additional party to guarantee.

CFPB Regulation B / ECOA
Statute of limitationsMedium confidence

South Carolina generally provides three years for actions on contracts and obligations not otherwise addressed, subject to sealed instruments, UCC, demand, payment, and accrual issues.

S.C. Code Title 15, Chapter 3
Homestead exemptionHigh confidence

South Carolina provides statutory homestead and other exemptions from attachment, levy, and sale, with value limits and exceptions that should be checked before relying on them.

S.C. Code Title 15, Chapter 41

Borrower protections to negotiate

  • Strike judgment-by-confession, cognovit, and warrant-of-attorney language unless South Carolina counsel approves it.
  • Cap liability and exclude future advances, renewals, and affiliate obligations without written approval.
  • Preserve foreclosure appraisal, valuation, notice, and commercially reasonable sale defenses.
  • Keep spouse signatures limited to legitimate collateral or credit-support needs under ECOA.
  • Require release after payoff, refinance, business sale, or a written burn-down milestone.

Official resources

SBA Form 148 — Unconditional Guarantee SBA SOP 50 10 — Lender and Development Company Loan Programs 13 CFR § 120.160 — SBA loan conditions CFPB Regulation B / ECOA — 12 CFR Part 1002 S.C. Code Title 15, Chapter 35 — judgments S.C. Code Title 15, Chapter 3 — limitations S.C. Code Title 15, Chapter 41 — homestead and exemptions

Legal-review notes

Guide confidence marker: Needs lawyer verification.

  • South Carolina deficiency, appraisal, and guarantor-waiver treatment needs lawyer verification before paid promotion.
  • Confirm current South Carolina contract limitation rules for guaranties, sealed instruments, and UCC notes before publishing a specific deadline.
  • Verify current South Carolina exemption amounts before publishing specific dollar figures.

Frequently asked questions

Can a South Carolina guaranty include confession-of-judgment language?

South Carolina has a statutory judgment-by-confession procedure, so this wording should be removed or reviewed carefully before signing.

Does South Carolina require a spouse to guarantee?

Not simply because the applicant is married. South Carolina is not a community-property state, and ECOA limits additional spouse-signature requirements.

What should South Carolina borrowers negotiate first?

Prioritize confession-clause removal, a guaranty cap, future-advance limits, foreclosure or collateral-sale defenses, and release mechanics.