20:36:04:04. Examination of new and purchased plants. Before any person begins assembly of an abstract plant for the purpose of qualifying for a certificate of registration the person shall contact the board. The board shall advise the person as to procedure and shall observe the methods used during the construction of the plant. Whenever any person has completed assembly of an abstract plant or intends to purchase an already registered plant the person shall notify the board in writing that the plant is ready for examination and state the place at which the plant may be examined. The executive secretary shall immediately communicate the writing's contents to all members of the board and the board shall fix a date for examination of the plant, within 60 days of notification, with notice to the applicant of the examination. The examination may be conducted by one or more members of the board as may be ordered by the board and such member or members shall then make their examinations and report within 60 days after date of the order. During the 60-day period different examinations may be made at different times by the member or members of the board, and the applicant shall cooperate fully in showing the condition of the plant and explaining anything required of the applicant in connection with the examination. The applicant shall afford the member or members full opportunity to examine the plant privately and without the applicant's presence if any of the members so desire. After the member or members of the board have completed their examination of the plant they shall make a joint report or individual reports in writing to the board together with their recommendations, and the reports shall be filed with and become an official record of the board. The board shall make its official decisions as to the sufficiency of the plant, and file the decision in the office of the board and a copy of the report and the decision shall then be sent by certified mail, return receipt requested, to the address where the plant was located at the time of examination. If the decision of the board requires certain corrections or additions, or both, to the plant are necessary, the decision shall specify the necessary changes and may fix additional time for the applicant to become compliant and notify the board. Upon notification, the board shall then examine the plant and make its decision as provided under this section.
Source: SL 1975, ch 16, § 1; 3 SDR 49, effective January 17, 1976; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 34 SDR 73, effective September 17, 2007; 46 SDR 42, effective October 3, 2019.
General Authority: SDCL 36-13-6.1(7).
Law Implemented: SDCL 36-13-10.
20:36:04:04.01. Scope of examination. The plant examination
shall be divided into the following areas:
(1) The preparation of not
less than 5 complete chains of title consisting of the book and page of the
recorded instrument, type of instrument, parties to the instruments, and dates.
The chains are to include any instruments filed of record which do not describe
the specific property but which would affect title to the property;
(2) The running of not less
than 20 chains of title limited to a notation as to the book and page of
recorded instruments which describe the property;
(3) A list of 20 recorded
instruments not affecting specific property shall be compiled by the board from
the office of the register of deeds. The board shall check the list in the
plant to see that they are properly indexed;
(4) The board shall examine
not less than 20 instruments. If they are abbreviated takeoffs from recorded
instruments, they will be checked against the original recorded instruments to
see that they contain all essential parts of the instruments. If they are films
or copies of the original recorded instruments, they will be checked to see
that all essential parts of the instruments are clearly legible; and
(5) The board shall compile
a list of 20 unsatisfied mechanics' or materialmen's liens which have been
filed or renewed in the past 6 years in the office of the register of deeds and
unsatisfied judgments which have been filed or renewed on the South Dakota
Unified Judicial System; the board shall check the list in the plant to see
that they are properly indexed. If there are fewer than 10 unsatisfied
mechanics' or materialmen's liens in the office of the register of deeds, all
of them shall be checked in the plant.
Plants may be examined on any other
areas considered advisable by the board.
Source:
3 SDR 49, effective January 17, 1976; 6 SDR 11, effective August 14, 1979; 12
SDR 151, 12 SDR 155, effective July 1, 1986; 34 SDR 73, effective September 17,
2007.
General
Authority: SDCL 36-13-6, 36-13-6.1(7).
Law
Implemented: SDCL 36-13-10.
20:36:04:04.02. Use of other registered plants in county of examination. If there is another registered abstracter in the county of examination, the board may go to that abstracter and use his records to check the chains of title that have been given to the plant being examined. The board may also request from another registered abstracter in the county a list of five descriptions where there are known discrepancies in the register of deeds indexes.
Source: 3 SDR 49, effective January 17, 1976; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 36-13-6.
Law Implemented: SDCL 36-13-10.
20:36:04:04.03. Grading of plant examination. Plants shall be graded on a scale of percentage, with 80 percent being required for approval. If the plant fails in any of the areas set forth in § 20:36:04:04.01, the board may establish the plant's sufficiency in the areas in which it passed and permit it to be reexamined only in the areas in which it failed.
When grading areas in subdivisions 20:36:04:04.01(1) and (2), the board shall use the following criteria: If there are any discrepancies between the indexes in the plant and those in the office of the register of deeds or another registered plant in the county, the board shall check the recorded instruments in question to see whether the error or discrepancy is in the office of the register of deeds or in the plant. If an error is found in the chain from the plant being examined, it will result in a reduction in the credit given for that chain. If a chain from the plant being examined shows an instrument properly posted which is not shown on the chain from the office of the register of deeds, additional credit will be given to the plant which will be used to offset a reduction in the credit given for that chain.
Source: 3 SDR 49, effective January 17, 1976; 6 SDR 11, effective August 14, 1979; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 46 SDR 42, effective October 3, 2019.
General Authority: SDCL 36-13-6.1(7).
Law Implemented: SDCL 36-13-10.
20:36:04:04.04. Fee for plant examination. An examination fee of $500 shall be charged for each examination of new and purchased plants for the purpose of qualifying for a certificate of registration. The fee shall be payable to the board when application is made for a certificate of registration.
Source: 7 SDR 72, effective February 1, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 34 SDR 73, effective September 17, 2007; 46 SDR 42, effective October 3, 2019.
General Authority: SDCL 36-13-6.1(2).
Law Implemented: SDCL 36-13-10.
