S.D. Admin. R. 20:07:03:23

Current through Register Vol. 51, page 67, December 16, 2024

Section 20:07:03:23 - Loans made with the assistance of third parties

If a third party is not the vendor of property that ultimately will be collateral for a particular loan, a bank may make the loan with the assistance of the third party or in connection with prior arrangements between the bank and the third party subject to the following conditions:

(1) Final approval or disapproval of a proposed loan is made by the bank at an authorized bank office or branch based upon bank credit standards;

(2) Disbursements of loan proceeds are made at an authorized bank office or branch; and

(3) The bank maintains proof that the activities engaged in under this section are included in coverage by its banker's blanket bond or an equivalent form of insurance.

S.D. Admin. R. 20:07:03:23

16 SDR 114, effective 1/15/1990.

General Authority: SDCL 51A-2-13.

Law Implemented: SDCL 51A-2-14(4).