<html> <head> <title>Rule 20:07:03:23 Loans made with the assistance of third parties.</title> <META NAME="Keywords" Content="Administrative Rules 20:07:03:23"> <META NAME="Description" Content="Administrative Rules 20:07:03:23 Loans made with the assistance of third parties."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>20:07:03:23.&nbsp;&nbsp;Loans made with the assistance of third parties.</b> If a third party is not the vendor of property that ultimately will be collateral for a particular loan, a bank may make the loan with the assistance of the third party or in connection with prior arrangements between the bank and the third party subject to the following conditions:</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;Final approval or disapproval of a proposed loan is made by the bank at an authorized bank office or branch based upon bank credit standards;</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;Disbursements of loan proceeds are made at an authorized bank office or branch; and</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;The bank maintains proof that the activities engaged in under this section are included in coverage by its banker's blanket bond or an equivalent form of insurance.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 16 SDR 114, effective January 15, 1990.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b>SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-2-13">51A-2-13.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b>SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-2-14">51A-2-14(4).</A></p> </div> </body> </html>