<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.sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0 { 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.sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000003 { 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="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=68:01:01:01"><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000000">68:01:01:01</span></a><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000001">.  Definitions.</span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0"> Words used in this article mean:</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (1)  "Account," one or more of the trust accounts created pursuant to a series supplemental resolution;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (2)  "Authority," the South Dakota Economic Development Finance Authority;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">3</span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Borrower," an enterprise as defined in SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-1"><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000003">1-16B-</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000003">1</span></a><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0"> that enters into a loan agreement with the authority;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">4</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Capitalized interest," interest on a series of bonds expected to be paid from a portion of the proceeds of the bonds;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">5</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Collateral," for a particular loan, one or more of the following:</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">        (a)  The project;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">        (b)  Any other real or personal property </span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">that may be made </span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">subject to a security instrument;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">        (</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">c</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  An assignment of leases and rents of a project;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">        (</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">d</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  A letter of credit or surety obligation; and</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">        (</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">e</span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  Any other </span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">property which may be</span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0"> provided to secure the loan;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">6</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Completed" or "completion," the filing by the borrower with the trustee of the certificate of completion of a project;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">7</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Costs of issuance," all items of expense payable or reimbursable directly or indirectly by the authority and related to the authorization, sale, and issuance of bonds including printing and photocopying costs; filing and recording fees; initial fees and charges of the trustee; initial capital reserve fund premiums, if any; initial costs of providing any credit enhancement; legal fees and charges; professional consultants' fees; costs of credit ratings; fees and charges for the execution, transportation, and safekeeping of bonds; underwriter's discount or placement fees and expenses, including filing or registration fees under applicable securities laws; costs and expenses of refunding; and other costs, charges, and fees in connection with the original issuance of bonds;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">8</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Credit enhancement," one of the following:</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">        (a)  A guarantee provided by any person or business entity;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">        (b)  Governmental insurance;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">        (c)  Letters of credit; or</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">        (d)  Surety obligations issued to secure the prompt payment of debt service on a series of bonds;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">9</span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Letter of credit," an irrevocable </span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">instrument</span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0"> issued in favor of the trustee or the authority for the account of a borrower by a commercial bank, savings and loan association, a United States branch or agency of a foreign bank, or another corporation organized under the laws of one of the states of the United States;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (1</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">0</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Loan," an agreement made by the authority to a borrower to finance costs of a project;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">11</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Loan reserve account," the account designated to hold the required loan reserve of a particular series of bonds, created pursuant to the series supplemental resolution;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (1</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">2</span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Program," the authority's South Dakota economic development loan program implemented under </span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">SDCL chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B"><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000003">1-16B</span></a><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0"> and this article;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (1</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">3</span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Project," </span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">a</span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0"> development project as defined by SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-1"><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000003">1-16B-</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000003">1</span></a><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">, </span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">that involves</span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0"> the acquisition or improvement of land; the acquisition, construction, rehabilitation, removal, or improvement of buildings, or the acquisition and installation of fixtures useful in connection with an enterprise owned or leased by a borrower and located or to be located in the state;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (1</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">4</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Series of bonds," a designated series of bonds authorized by a series supplemental resolution;</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (1</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">5</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Series supplemental resolution," a resolution adopted by the board authorizing the issuance of a single series of bonds; and</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    (1</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">6</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">)  "Surety obligation," a municipal bond insurance policy or unconditional surety bond or similar obligation which may be drawn upon by the trustee for the payment of the principal on and the redemption price of any series of bonds.</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    </span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000001">Source:</span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0"> 13 SDR 134, effective March 31, 1987; 21 SDR 14, effective August 3, 1994</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">; 52 SDR 49, effective November 17, 2025</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">.</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    </span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000001">General Authority:</span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-70"><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000003">1-16B-</span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000003">70</span></a><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">.</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">    </span><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000001">Law Implemented:</span><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-14"><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000003">1-16B-14</span></a><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">(7), </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-15"><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0-000003">1-16B-15</span></a><span class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745C0">.</span></p><p dir="ltr" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745P0"><span xml:space="preserve" class="sd9fef773-6855-45e1-9a2f-a0c3b7b73745000002"> </span></p></div></body></html>