<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.sf12cd03b-d3e2-4521-8452-43ddc57848c9P0 { 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.sf12cd03b-d3e2-4521-8452-43ddc57848c9C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sf12cd03b-d3e2-4521-8452-43ddc57848c9C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sf12cd03b-d3e2-4521-8452-43ddc57848c9C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sf12cd03b-d3e2-4521-8452-43ddc57848c9000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sf12cd03b-d3e2-4521-8452-43ddc57848c9C0-000003 { 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="sf12cd03b-d3e2-4521-8452-43ddc57848c9P0"><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=70:05:03:08"><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0-000000">70:05:03:08</span></a><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0-000001">.  Loan </span><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0-000001">security</span><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0-000001">.</span><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0"> Loans may be secured by </span><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0">a guarantee or promissory note executed by the benefitted entity, </span><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0">liens on the interest of the borrower in all real and personal property</span><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0">,</span><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0"> easements</span><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0">,</span><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0"> rights-of-way</span><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0">, a commitment by the borrower to exercise taxing authority,</span><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0"> and any other assets of the borrower considered necessary by the board to adequately secure the loan.</span></p><p dir="ltr" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9P0"><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9000002"> </span></p><p dir="ltr" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9P0"><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0">    </span><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0-000001">Source:</span><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0"> 19 SDR 107, effective January 24, 1993</span><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0">; 49 SDR 47, effective November 21, 2022</span><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0">.</span></p><p dir="ltr" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9P0"><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0">    </span><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0-000001">General Authority:</span><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=49-16C-3"><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0-000003">49-16C-3</span></a><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0">.</span></p><p dir="ltr" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9P0"><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0">    </span><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0-000001">Law Implemented:</span><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=49-16C-3"><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0-000003">49-16C-3</span></a><span class="sf12cd03b-d3e2-4521-8452-43ddc57848c9C0">.</span></p><p dir="ltr" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9P0"><span xml:space="preserve" class="sf12cd03b-d3e2-4521-8452-43ddc57848c9000002"> </span></p></div></body></html>