<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.s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8P0 { 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.s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0-000002 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8000003 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8P0"><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:04:17"><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0-000000">67:12:04:17</span></a><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0-000001">.  Full and adequate consideration in money or money's worth for property transferred.</span><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0"> Any item or service received for property </span><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">transferred or assigned is</span><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0"> within the meaning of the phrase "full and adequate consideration in money or money's worth" </span><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">if</span><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0"> the value of the item or service equals the reasonable market value of the property transferred or assigned. </span><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">If</span><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0"> property </span><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">is</span><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0"> transferred or assigned without full and adequate consideration, the fair market value, determined according to § </span><a href="https://sdlegislature.gov/Rules?Rule=67:12:04:10.01"><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0-000002">67:12:04:10.01</span></a><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">, less encumbrances of record, </span><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">must</span><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0"> be used in determining if the recipient received the full and adequate consideration in money or money's worth.</span></p><p dir="ltr" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8P0"><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8000003"> </span></p><p dir="ltr" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8P0"><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">    </span><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0-000001">Source:</span><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0"> SL 1975, ch 16, § 1; 3 SDR 52, effective January 27, 1977; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 12 SDR 112, effective January 16, 1986</span><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">; 52 SDR 55, effective December 2, 2025</span><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">.</span></p><p dir="ltr" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8P0"><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">    </span><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0-000001">General Authority:</span><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0-000002">28-</span><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0-000002">6-1</span></a><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">.</span></p><p dir="ltr" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8P0"><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">    </span><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0-000001">Law Implemented:</span><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0-000002">28-</span><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0-000002">6-1</span></a><span class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8C0">.</span></p><p dir="ltr" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8P0"><span xml:space="preserve" class="s5bf7dc2b-bdf5-42c4-8af3-77bfebbf2bb8000003"> </span></p></div></body></html>