S.D. Admin. R. 68:01:01:01

Current through Register Vol. 51, page 56, November 4, 2024

Section 68:01:01:01 - Definitions

Words used in this article mean:

(1) "Account" or "accounts," one or more of the trust accounts created pursuant to a series supplemental resolution;

(2) "Act," SDCL 1-16B;

(3) "Authority," the South Dakota Economic Development Finance Authority;

(4) "Borrower," an enterprise as defined in SDCL 1-16B-6 that enters into a loan agreement with the authority;

(5) "Capitalized interest," interest on a series of bonds expected to be paid from a portion of the proceeds of the bonds;

(6) "Collateral," for a particular loan, one or more of the following:

(a) The project;

(b) Any other real or personal property subject to a security instrument;

(c) A guaranty of a loan by any person or business entity;

(d) An assignment of leases and rents of a project;

(e) A letter of credit or surety obligation; and

(f) Any other collateral or security provided to secure the loan;

(7) "Completed" or "completion," the filing by the borrower with the trustee of the certificate of completion of a project;

(8) "Costs of issuance," all items of expense payable or reimbursable directly or indirectly by the authority and related to the authorization, sale, and issuance of bonds including printing and photocopying costs; filing and recording fees; initial fees and charges of the trustee; initial capital reserve fund premiums, if any; initial costs of providing any credit enhancement; legal fees and charges; professional consultants' fees; costs of credit ratings; fees and charges for the execution, transportation, and safekeeping of bonds; underwriter's discount or placement fees and expenses, including filing or registration fees under applicable securities laws; costs and expenses of refunding; and other costs, charges, and fees in connection with the original issuance of bonds;

(9) "Credit enhancement," one of the following:

(a) A guarantee provided by any person or business entity;

(b) Governmental insurance;

(c) Letters of credit; or

(d) Surety obligations issued to secure the prompt payment of debt service on a series of bonds;

(10) "Letter of credit," an irrevocable letter of credit issued in favor of the trustee or the authority for the account of a borrower by a commercial bank, savings and loan association, a United States branch or agency of a foreign bank, or another corporation organized under the laws of one of the states of the United States;

(11) "Loan," an agreement made by the authority to a borrower to finance costs of a project;

(12) "Loan repayment," the scheduled payments of principal and interest on a loan payable by a borrower pursuant to the provisions of a loan agreement;

(13) "Loan reserve account," the account designated to hold the required loan reserve of a particular series of bonds, created pursuant to the series supplemental resolution;

(14) "Mortgage," a mortgage and security agreement and a uniform commercial code financing statement, in a form acceptable to the authority, granting a security interest in, or a lien on, the property comprising a project and any other property as the authority determines;

(15) "Program," the authority's South Dakota economic development loan program implemented under the act and this article;

(16) "Project," an economic development project as defined by SDCL 1-16B-3, including the acquisition or improvement of land; the acquisition, construction, rehabilitation, removal, or improvement of buildings, or the acquisition and installation of fixtures useful in connection with an enterprise owned or leased by a borrower and located or to be located in the state;

(17) "Series of bonds," a designated series of bonds authorized by a series supplemental resolution;

(18) "Series supplemental resolution," a resolution adopted by the board authorizing the issuance of a single series of bonds; and

(19) "Surety obligation," a municipal bond insurance policy or unconditional surety bond or similar obligation which may be drawn upon by the trustee for the payment of the principal on and the redemption price of any series of bonds.

S.D. Admin. R. 68:01:01:01

13 SDR 134, effective 3/31/1987; 21 SDR 14, effective 8/3/1994.

General Authority: SDCL 1-16B-14(4).

Law Implemented: SDCL 1-16B-14(4).