20:10:12:15.  Financial criteria for licensing. For a class A license, the applicant's balance sheet must show a positive net worth of at least $250,000. However, to offer voluntary credit sale contracts, a class A license applicant's balance sheet must show a positive net worth of at least $500,000. For a class B license, the applicant's balance sheet must show a net worth of at least $100,000. In determining net worth and working capital for a class A or class B applicant, the commission may disallow the following assets if the assets are withdrawals of equity or are uncollectible:

    (1)  Accounts and notes receivable from or advances to stockholders, owners, partners, employees, or affiliates;

    (2)  Accounts receivable over one hundred eighty days old;

    (3)  Investments or equities in cooperatives; or

    (4)  Goodwill.

    The balance sheet for a class A or class B applicant must show current assets greater than current liabilities.

    Source: 24 SDR 190, effective July 15, 1998; 40 SDR 39, effective September 9, 2013; 50 SDR 125, effective May 6, 2024.

    General Authority: SDCL 49-45-6(5).

    Law Implemented: SDCL 49-45-7.