<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.s2c29d00d-6d95-4da6-b12e-fd567fd10f21P0 { 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.s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2c29d00d-6d95-4da6-b12e-fd567fd10f21000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000003 { color: black; background: white; font-family: Times; font-size: 10pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000004 { 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="s2c29d00d-6d95-4da6-b12e-fd567fd10f21P0"><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=68:01:01:03"><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000000">68:01:01:03</span></a><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000001">.  Loan reserve account requirement.</span><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0"> For any series of bonds for which a loan reserve account is required, the borrower must deposit in the loan reserve account</span><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">,</span><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0"> as of the date of calculation, </span><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">one of the following amounts, as applicable</span><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">:</span></p><p dir="ltr" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21P0"><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21000002"> </span></p><p dir="ltr" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21P0"><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">    (1)  </span><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">If the series of bonds is issued on a tax-exempt basis, an</span><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0"> amount equal to </span><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">ten</span><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0"> percent of the original principal amount of the series of bonds or the lesser amount required under </span><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">26 U.S.C. </span><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">§</span><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000003"> </span><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">148(d)(1) </span><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">(December 31, 2024),</span><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0"> to preserve the tax-exempt status of interest on the series of bonds;</span></p><p dir="ltr" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21P0"><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21000002"> </span></p><p dir="ltr" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21P0"><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">    (2)  If the series of bonds is issued on a taxable basis, the maximum debt service, assuming no acceleration of maturity, for the bond year; or</span></p><p dir="ltr" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21P0"><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21000002"> </span></p><p dir="ltr" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21P0"><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">    (3)  An amount as determined by the authority.</span></p><p dir="ltr" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21P0"><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21000002"> </span></p><p dir="ltr" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21P0"><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">    </span><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000001">Source:</span><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0"> 13 SDR 134, effective March 31, 1987; 21 SDR 14, effective August 3, 1994</span><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">; 52 SDR 49, effective November 17, 2025</span><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">.</span></p><p dir="ltr" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21P0"><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">    </span><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000001">General Authority:</span><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-70"><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000004">1-16B-70</span></a><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">.</span></p><p dir="ltr" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21P0"><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">    </span><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000001">Law Implemented:</span><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-14"><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000004">1-16B-14</span></a><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">(7), </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-15"><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000004">1-16B-15</span></a><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-18"><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0-000004">1-16B-18</span></a><span class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21C0">.</span></p><p dir="ltr" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21P0"><span xml:space="preserve" class="s2c29d00d-6d95-4da6-b12e-fd567fd10f21000002"> </span></p></div></body></html>