<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.sfc405d63-0bc2-4b11-870b-0545ee2736bdP0 { 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.sfc405d63-0bc2-4b11-870b-0545ee2736bdC0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sfc405d63-0bc2-4b11-870b-0545ee2736bdC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sfc405d63-0bc2-4b11-870b-0545ee2736bdC0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sfc405d63-0bc2-4b11-870b-0545ee2736bdC0-000002 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sfc405d63-0bc2-4b11-870b-0545ee2736bd000003 { 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="sfc405d63-0bc2-4b11-870b-0545ee2736bdP0"><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0"></span><a href="https://sdlegislature.gov/Rules?Rule=12:03:03:07"><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0-000000">12:03:03:07</span></a><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0-000001">.Default.</span><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0"> A loan from the revolving fund is in default if the district fails to make an annual payment </span><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0">within</span><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0"> 90 days after the due date, unless the commission has approved a request for a loan extension or modification pursuant to </span><a href="https://sdlegislature.gov/Rules?Rule=12:03:03:11"><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0-000002">12:03:03:11</span></a><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0">. </span><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0">Upon default in the payments of principal and accrued interest on the loan or in the breach of any covenant or condition, the commission may:</span></p><p dir="ltr" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdP0"><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bd000003"> </span></p><p dir="ltr" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdP0"><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0">(1)Declare immediately due and payable:</span></p><p dir="ltr" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdP0"><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0">(a)The outstanding principal amount;</span></p><p dir="ltr" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdP0"><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0">(b)The accrued interest; and</span></p><p dir="ltr" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdP0"><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0">(c)All costs associated with the collection of the outstanding balance.</span></p><p dir="ltr" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdP0"><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0">(2)For the account of the borrower, incur and pay reasonable expenses for repair or maintenance of the equipment and other expenses necessary to cure the default; or</span></p><p dir="ltr" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdP0"><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0">(3)Take possession of the equipment and sell, lease, or otherwise dispose of the equipment entity.</span></p><p dir="ltr" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdP0"><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bd000003"> </span></p><p dir="ltr" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdP0"><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0"></span><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0-000001">Source:</span><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0"> 11 SDR 59, effective October 29, 1984; 12 SDR 128, 12 SDR 154, effective July 1, 1986; 21 SDR 90, effective November 14, 1994</span><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0">; 49 SDR 48, effective November 23, 2022</span><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0">.</span></p><p dir="ltr" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdP0"><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0"></span><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0-000001">General Authority:</span><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=38-8-53"><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0-000002">38-8-53</span></a><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0">.</span></p><p dir="ltr" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdP0"><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0"></span><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0-000001">Law Implemented:</span><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=38-8-53"><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0-000002">38-8-53</span></a><span class="sfc405d63-0bc2-4b11-870b-0545ee2736bdC0">.</span></p><p dir="ltr" class="sfc405d63-0bc2-4b11-870b-0545ee2736bdP0"><span xml:space="preserve" class="sfc405d63-0bc2-4b11-870b-0545ee2736bd000003"> </span></p></div></body></html>