Repealed by SL 1982, ch 341, § 8.
Regulated lenders exempt from interest rate limitations and usury statutes.
Regulated lenders are exempt from all limitations on the rate of interest which they may charge and
are further exempt from the operation and effect of all usury statutes, except as is otherwise provided
in § 54-3-14. Regulated lenders and their assignees are further exempt from the prohibition,
operation, and effect of § 15-17-39, and regulated lenders and their assignees may recover reasonable
attorney's fees in the case of default of payment if provided for in the note, bond, mortgage, or other
evidence of debt.
Source: SL 1980, ch 335, § 2; SL 1996, ch 283.
54-3-14 Regulated lenders defined.
Regulated lenders defined.
The term "regulated lenders" as used in § 54-3-13 means:
A bank organized pursuant to chapter 51A-1, et seq.;
A bank organized pursuant to 12 U.S.C. § 21;
A trust company organized pursuant to chapter 51A-6;
A savings and loan association organized pursuant to chapter 52-1, et seq.;
A savings and loan association organized pursuant to 12 U.S.C. § 1464;
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;
A federal land bank organized pursuant to 12 U.S.C. § 2011;
A federal land bank association organized pursuant to 12 U.S.C. § 2031;
A production credit association organized pursuant to 12 U.S.C. § 2091;
A federal intermediate credit bank organized pursuant to 12 U.S.C. § 2071;
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;
A federal credit union organized pursuant to 12 U.S.C. § 1753;
A federal financing bank organized pursuant to 12 U.S.C. § 2283;
A federal home loan bank organized pursuant to 12 U.S.C. § 1423, et seq.;
A national consumer cooperative bank organized pursuant to 12 U.S.C. § 3011;
A bank for cooperatives organized pursuant to 12 U.S.C. § 2121;
Bank holding companies organized pursuant to 12 U.S.C. § 1841, et seq.;
National Homeownership Foundation organized pursuant to 12 U.S.C. § 1701y;
Farmers Home Administration as provided by 7 U.S.C. § 1981;
Small Business Administration as provided by 15 U.S.C. § 633;
Government National Mortgage Association and Federal National Mortgage Association
as provided by 12 U.S.C. § 1717;
South Dakota Housing Development Authority as provided by chapter 11-11;
Insurance companies, whether domestic or foreign, authorized to do business in this state,
and which as a part of their business engage in mortgage lending in this state. However,
§ 54-3-13 does not exempt insurance companies from the provisions of § 58-15-15.8; or
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.
SL 1980, ch 335, § 1; SL 1982, ch 342; SL 2017, ch 221 (Initiated Measure 21), § 1, eff.
Nov. 16, 2016.
54-3-15 Exemption from federal preemption of state usury laws.
Exemption from federal preemption of state usury laws.
The provisions of 12 U.S.C.
1735f-7, 12 U.S.C. 86a and 15 U.S.C. 687 in effect on December 31, 1980, which preempt state
usury laws, do not apply to loans made in the state of South Dakota.
Source: SL 1981, ch 351.
54-3-16 Official state interest rates.
Official state interest rates.
The official state interest rates, as referenced throughout
the South Dakota Codified Laws, are as follows:
Category A rate of interest is four and one-half percent per year;
Category B rate of interest is ten percent per year;
Category C rate of interest is twelve percent per year;
Category D rate of interest is one percent per month or fraction thereof;
Category E rate of interest is four percent per year;
Category F rate of interest is fifteen percent per year; and
Category G rate of interest is five-sixth percent per month or fraction thereof.
SL 1984, ch 319, § 1; SL 1987, ch 362; SL 1994, ch 366, § 1; SL 2000, ch 226, § 1.
54-3-17 Recommendations for amendment of official rates.
Back to Title 54
Recommendations for amendment of official rates.
The Division of Banking shall
annually review current interest rates, which review shall take into account the national rate of
inflation and the prime lending rate as well as other indices division personnel deem proper, and, if
necessary, shall recommend amendments to § 54-3-16 to the Legislature during regular session.
Source: SL 1984, ch 319, § 2.