2017 Session Laws

CHAPTER 206

(SB 166)

Finance charge limitations on business lending.


        ENTITLED, An Act to provide certain provisions excluding business-to-business lending from certain money lending limitations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That chapter 54-4 be amended by adding a NEW SECTION to read:

    The provisions of ยง 54-4-44 that place limitations on licensees that are engaged in the business of making loans do not apply to a licensee engaged in business-to-business lending. For purposes of this section, the term, business-to-business lending, means any lending to or in furtherance of a business or commercial venture that is not for personal, family, or household use and is not secured by a nonpurchase money security interest in a motor vehicle. Any business-to-business lending subject to the provisions of this section shall be in an amount not less than five thousand dollars and only to a borrower with a federal employer identification number.

     Signed March 13, 2017
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