<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s70eb6ddd-44c5-46dc-82a1-e84d888e0322P0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s70eb6ddd-44c5-46dc-82a1-e84d888e0322000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0-000003 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322P0"><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=12:21:01:02"><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0-000000">12:21:01:02</span></a><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0-000001">.  Assets and liabilities.</span><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0"> For purposes of this chapter</span><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">,</span><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0"> total assets include cash, crops, or feed on hand, livestock held for sale, breeding stock, marketable bonds and securities, securities not readily marketable, accounts receivable, notes receivable, cash invested in growing crops, net cash value of life insurance, machinery, equipment, cars and trucks, farm and other real estate including life estates and personal residence, value or beneficial interest in a trust, government payments or grants, and other assets. Total assets do not include items used for personal, family, or household purposes by the applicant; but in no event may any property be excluded, to the extent a deduction for depreciation is allowable for federal income tax purposes. </span><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">T</span><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">he participating lender</span><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0"> shall value all assets at f</span><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">air market value</span><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">. Fair market value</span><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0"> is what a willing buyer would pay a willing seller in the locality. A deduction of </span><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">ten</span><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0"> percent may be made from fair market value of farm and other real estate.</span></p><p dir="ltr" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322P0"><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322000002"> </span></p><p dir="ltr" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322P0"><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">    Total liabilities include accounts payable, notes or other indebtedness owed to any source, taxes, rent, amount owed on real estate contracts or real estate mortgages, judgments, accrued interest payable, and any other liabilities. Liabilities </span><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">must</span><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0"> be determined through the use of generally accepted accounting principles.</span></p><p dir="ltr" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322P0"><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322000002"> </span></p><p dir="ltr" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322P0"><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">    </span><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0-000001">Source:</span><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0"> 22 SDR 97, effective January 22, 1996</span><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">; 52 SDR 49, effective November 17, 2025</span><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">.</span></p><p dir="ltr" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322P0"><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">    </span><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0-000001">General Authority:</span><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-70"><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0-000003">1-16B-70</span></a><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">.</span></p><p dir="ltr" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322P0"><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">    </span><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0-000001">Law Implemented:</span><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-1"><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0-000003">1-16B-1</span></a><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">(3), </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-57"><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0-000003">1-16B-57</span></a><span class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322C0">.</span></p><p dir="ltr" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322P0"><span xml:space="preserve" class="s70eb6ddd-44c5-46dc-82a1-e84d888e0322000002"> </span></p></div></body></html>