<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.s3f64da37-6544-4945-ba0c-68c3bbcf09ebP0 { 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.s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s3f64da37-6544-4945-ba0c-68c3bbcf09eb000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0-000003 { 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="s3f64da37-6544-4945-ba0c-68c3bbcf09ebP0"><span xml:space="preserve" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0">    </span><a href="https://sdlegislature.gov/Rules?Rule=12:21:01:18"><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0-000000">12:21:01:18</span></a><span xml:space="preserve" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0-000001">. </span><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0-000001">S</span><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0-000001">ubstitution of collateral and transfer of property.</span><span xml:space="preserve" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0"> Equipment and other depreciable property may be exchanged or traded for similar property, and other property such as breeding livestock may be added or substituted as collateral at the discretion of the lender without the prior approval of the authority. The benefits of the loan made at the tax</span><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0">-</span><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0">exempt rate from the proceeds of an authority bond must remain with the qualified beginning farmer, and a person to whom property is traded or otherwise transferred may not obtain the benefits of the authority loan.</span></p><p dir="ltr" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebP0"><span xml:space="preserve" class="s3f64da37-6544-4945-ba0c-68c3bbcf09eb000002"> </span></p><p dir="ltr" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebP0"><span xml:space="preserve" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0">    </span><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0-000001">Source:</span><span xml:space="preserve" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0"> 22 SDR 97, effective January 22, 1996</span><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0">; 52 SDR 49, effective November 17, 2025</span><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0">.</span></p><p dir="ltr" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebP0"><span xml:space="preserve" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0">    </span><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0-000001">General Authority:</span><span xml:space="preserve" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-70"><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0-000003">1-16B-70</span></a><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0">.</span></p><p dir="ltr" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebP0"><span xml:space="preserve" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0">    </span><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0-000001">Law Implemented:</span><span xml:space="preserve" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-1"><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0-000003">1-16B-1</span></a><span xml:space="preserve" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0">(3), </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-57"><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0-000003">1-16B-57</span></a><span class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebC0">.</span></p><p dir="ltr" class="s3f64da37-6544-4945-ba0c-68c3bbcf09ebP0"><span xml:space="preserve" class="s3f64da37-6544-4945-ba0c-68c3bbcf09eb000002"> </span></p></div></body></html>