<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.sbc11038b-9d30-47e6-9712-c76362d73861P0 { 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.sbc11038b-9d30-47e6-9712-c76362d73861C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sbc11038b-9d30-47e6-9712-c76362d73861C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sbc11038b-9d30-47e6-9712-c76362d73861C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sbc11038b-9d30-47e6-9712-c76362d73861000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sbc11038b-9d30-47e6-9712-c76362d73861C0-000003 { 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="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=20:77:07:03"><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0-000000">20:77:07:03</span></a><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0-000001">.  Grounds for disciplinary action.</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> The following acts and omissions are grounds for disciplinary action:</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (1)  Prohibiting an appraiser from reporting the fee paid to the appraiser in the body of the appraisal report</span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (2)  Using an appraisal report submitted by an independent appraiser, or any data or information contained therein, for any purpose other than its intended use without the appraiser's or the intended end user's written consent, except as necessary to comply with regulatory mandates or legal requirements;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (3)  Failing to meet the requirements for registration established pursuant to this article;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (4)  Procuring or attempting to procure registration under this article by knowingly making a false statement, submitting false information, or making a material misrepresentation in an application filed with the department or procuring or attempting to procure a registration through fraud or misrepresentation;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (5)  Paying money or other valuable consideration other than the fees provided for by this article to any employee of the department to procure a registration;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (6)  Any act which constitutes dishonesty, fraud, or misrepresentation;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (7)  An</span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">y</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> owner who </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">owns more than ten percent of the appraisal management company,</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> a designated officer or a controlling person</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> having</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> pled guilty or nolo contendere to or being found guilty of a felony; pled guilty or nolo contendere to or being convicted of a misdemeanor involving mortgage lending or real estate appraising; or having committed an offense involving breach of trust, moral turpitude, fraudulent or dishonest dealings;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (8)  An</span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">y</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> owner</span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">,</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> who is, in whole or in part, directly or indirectly, a designated officer</span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">,</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> or a controlling person,</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> who has had an appraiser license or certificate refused, denied, cancelled, surrendered in lieu of revocation, or revoked in any state for substantive cause</span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (9)  Having disciplinary action of the designated officer or a controlling person by any agency of the State of South Dakota or another state or jurisdiction;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (10)  Being permanently or temporarily prohibited by a court of competent jurisdiction from engaging in or continuing to conduct any practice involving appraisal management services or operating an appraisal management company;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (11)  Violating any provision of this article or SDCL chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=36-21D"><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0-000003">36-21D</span></a><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (12)  Being disciplined with suspension, denial, censure, reprimand, or revocation of a registration by another state or jurisdiction;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (13)  Submitting fraudulent documents to another state or jurisdiction to become registered;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (14)  Being disciplined by any agency of the federal government, State of South Dakota, or another state or jurisdiction;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (15)  Failing to comply with a final order of the secretary;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (16)  Voluntary surrender of a registration in lieu of</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> other</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> disciplinary action by another state or jurisdiction;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (17)  Altering, modifying, or otherwise changing a completed requested appraisal report without written consent from the utilized appraiser who prepared the appraisal report;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (18)  </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">F</span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">ailing to establish and comply with processes and controls reasonably</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">designed to ensure that the appraisal management company conducts its appraisal management</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">services in accordance with the requirements of subsections 129E(a) through (i) of the Truth in Lending Act (TILA), 15</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">U.S.C. §§</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">1639e(a) through (i)</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> as amended to May 24, 2018, and 12 C.F.R. Part 226 (October 28, 2010)</span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (19)</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">  </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">Having an investigation or disciplinary action of an appraisal management company, the designated officer or a controlling person by the department or another state pending in this state or</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">another state;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (20)</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">  </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">Failing to comply with a final order of the secretary;</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (21)</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">  </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">Having any owner, designated officer or controlling person fail to demonstrate good</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">moral character; or</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    (22)</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">  </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">Failing to register as an appraisal management company as required to perform appraisal</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">management services.</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0-000001">Source:</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> 38 SDR 40, effective September 20, 2011; 45 SDR 45, effective October 8, 2018</span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">; 49 SDR 25, effective September 18, 2022</span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">.</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0-000001">General Authority:</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=36-21D-4"><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0-000003">36-21D-4</span></a><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">(7)</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">    </span><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0-000001">Law Implemented:</span><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=36-21D-1"><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0-000003">36-21D-1</span></a><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=36-21D-4"><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0-000003">36-21D-4</span></a><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861C0">(7), </span><a href="https://sdlegislature.gov/Statutes?Statute=36-21D-1"><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0-000003">36-21D-1</span></a><span class="sbc11038b-9d30-47e6-9712-c76362d73861C0">0.</span></p><p dir="ltr" class="sbc11038b-9d30-47e6-9712-c76362d73861P0"><span xml:space="preserve" class="sbc11038b-9d30-47e6-9712-c76362d73861000002"> </span></p></div></body></html>