<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.s241cbd8f-266d-4d0d-8447-4903ad1e3cbcP0 { 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.s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s241cbd8f-266d-4d0d-8447-4903ad1e3cbc000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0-000003 { 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="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcP0"><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">    </span><a href="https://sdlegislature.gov/Rules?Rule=20:09:26:18"><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0-000000">20:09:26:18</span></a><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0-000001">.  </span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0-000001">Payment and performance bonding for housing infrastructure projects -- Letter of credit</span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0-000001">.</span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0"> </span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">An applicant </span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">for housing infrastructure funding </span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">shall ensure compliance with the</span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0"> requirements of the</span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0"> applicable political subdivision</span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0"> or Indian tribe</span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0"> for contractor bonding. If the political subdivision</span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0"> or Indian tribe</span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0"> does not have contractor bonding requirements, the contractor, before commencing any work, must furnish surety in an amount not less than the contract price to the applicant, for the faithful performance of the contract, with the additional obligation that the contractor promptly pay all persons supplying the contractor with labor or material in the </span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">performance</span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0"> of the work provided for in the contract</span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">.</span></p><p dir="ltr" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcP0"><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbc000002"> </span></p><p dir="ltr" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcP0"><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">    </span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">In lieu of a payment and performance bond, the applicant may obtain a letter of credit in the amount of the housing infrastructure funding. The letter of credit must</span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">:</span></p><p dir="ltr" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcP0"><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbc000002"> </span></p><p dir="ltr" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcP0"><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">    </span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">(1)  </span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">List the authority as the named beneficiary</span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">;</span></p><p dir="ltr" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcP0"><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">    (2)  </span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">Be irrevocable and unconditional</span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">;</span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0"> and</span></p><p dir="ltr" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcP0"><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">    (3) </span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">Be issued by a federally insured financial institution</span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">.</span></p><p dir="ltr" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcP0"><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbc000002"> </span></p><p dir="ltr" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcP0"><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">    </span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0-000001">Source:</span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0"> </span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">49 SDR 125, effective July 3, 2023; 51 SDR 12, effective August 12, 2024; 52 SDR 10, effective August 4, 2025</span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">.</span></p><p dir="ltr" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcP0"><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">    </span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0-000001">General Authority:</span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=11-15-6"><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0-000003">11-15-6</span></a><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">.</span></p><p dir="ltr" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcP0"><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">    </span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0-000001">Law Implemented:</span><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=11-15-1"><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0-000003">11-15-1</span></a><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0"> to </span><a href="https://sdlegislature.gov/Statutes?Statute=11-15-5"><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0-000003">11-15-5</span></a><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">, inclusive</span><span class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcC0">.</span></p><p dir="ltr" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbcP0"><span xml:space="preserve" class="s241cbd8f-266d-4d0d-8447-4903ad1e3cbc000002"> </span></p></div></body></html>