2018 House Bill 1094 - Introduced

State of South Dakota  
NINETY-THIRD SESSION
LEGISLATIVE ASSEMBLY, 2018  

733Z0376   HOUSE BILL   NO.  1094  

Introduced by:    Representatives Bartels, Ahlers, Anderson, Hunhoff, Lake, Lust, Mickelson, Peterson (Kent), Steinhauer, and York and Senators Partridge, Cronin, Haverly, Klumb, Peters, Tapio, White, and Wiik
 

        FOR AN ACT ENTITLED, An Act to revise certain provisions regarding limitations on licensees engaged in the business of making loans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That § 54-4-44.4 be amended to read:
    54-4-44.4. The provisions of § 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, or agricultural 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 or a federal tax identification number.
    Section 2. That § 54-3-14 be amended to read:
    54-3-14. The term "regulated lenders" as used in § 54-3-13 means:
            (1)    A bank organized pursuant to chapter 51A-1, et seq.;
            (2)    A bank organized pursuant to 12 U.S.C. § 21;
            (3)    A trust company organized pursuant to chapter 51A-6;
            (4)    A savings and loan association organized pursuant to chapter 52-1, et seq.;
            (5)    A savings and loan association organized pursuant to 12 U.S.C. § 1464;
            (6)    Any wholly owned subsidiary of a state or federal bank or savings and loan association which subsidiary is subject to examination by the comptroller of the currency, or the federal reserve system, or the South Dakota Division of Banking, or the federal home loan bank board and which subsidiary has been approved by the United States secretary of housing and urban development for participation in any mortgage insurance program under the National Housing Act;
            (7)    A federal land bank organized pursuant to 12 U.S.C. § 2011;
            (8)    A federal land bank association organized pursuant to 12 U.S.C. § 2031;
            (9)    A production credit association organized pursuant to 12 U.S.C. § 2091;
            (10)    A federal intermediate credit bank organized pursuant to 12 U.S.C. § 2071;
            (11)    An agricultural credit corporation or livestock loan company or its affiliate, the principal business of which corporation is the extension of short and intermediate term credit to farmers and ranchers;
            (12)    A federal credit union organized pursuant to 12 U.S.C. § 1753;
            (13)    A federal financing bank organized pursuant to 12 U.S.C. § 2283;
            (14)    A federal home loan bank organized pursuant to 12 U.S.C. § 1423, et seq.;
            (15)    A national consumer cooperative bank organized pursuant to 12 U.S.C. § 3011;
            (16)    A bank for cooperatives organized pursuant to 12 U.S.C. § 2121;
            (17)    Bank holding companies organized pursuant to 12 U.S.C. § 1841, et seq.;
            (18)    National Homeownership Foundation organized pursuant to 12 U.S.C. § 1701y;
            (19)    Farmers Home Administration as provided by 7 U.S.C. § 1981;
            (20)    Small Business Administration as provided by 15 U.S.C. § 633;
            (21)    Government National Mortgage Association and Federal National Mortgage Association as provided by 12 U.S.C. § 1717;
            (22)    South Dakota Housing Development Authority as provided by chapter 11-11;
            (23)    Insurance companies Any insurance company, whether domestic or foreign, authorized to do business in this state, and which as a part of their its business engage engages in mortgage lending in this state. However, The provisions of § 54-3-13 does do not exempt any insurance companies company from the provisions of § 58-15-15.8; or
            (24)    Any wholly owned service corporation subsidiary of a domestic or foreign insurance company, authorized to do business in this state, and which subsidiary is subject to examination by the same insurance examiners as the parent company; or
            (25)    Any licensee engaged in business-to-business lending under the provisions of § 54-4-44.4.

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