<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.s669b2244-7464-4471-86db-60ed33bee7a5P0 { 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.s669b2244-7464-4471-86db-60ed33bee7a5C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s669b2244-7464-4471-86db-60ed33bee7a5C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s669b2244-7464-4471-86db-60ed33bee7a5C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s669b2244-7464-4471-86db-60ed33bee7a5C3 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s669b2244-7464-4471-86db-60ed33bee7a5000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s669b2244-7464-4471-86db-60ed33bee7a5C4 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s669b2244-7464-4471-86db-60ed33bee7a5C0-000003 { 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="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=74:29:12:08"><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0-000000">74:29:12:08</span></a><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0-000001">.  Government securities.</span><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0"> </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">Government securities as financial assurance are subject to the following requirements:</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5000002"> </span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0">    </span><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0">(1)  </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">The government securities are backed by the full faith and credit of the United States government and must be purchased from a United States bank or broker</span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">;</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C3">    (2)  </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">The government securities have an approximate minimum initial maturity of five years from date of the board's acceptance of the security</span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">;</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C3">    (3)  </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">The government securities must be registered to a bank or broker approved as a custody agent by the board</span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">;</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C3">    (4)  </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">The government securities must be pledged to the board, and held in a joint account with the approved custody agent</span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">;</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C3">    (5)  </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">All interest from the government securities must be paid to the operator</span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">;</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C3">    (6)  </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0">The board shall accept the value of the government securities at one hundred percent, applied to the lower of the face value or the market value of the government securities on an annual basis</span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0">;</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0">    (7)  </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C4">The only authorized signatory on the joint account is the board chairperson</span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C4">;</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C4">    (8)  </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">The operator shall provide to the board a book entry receipt and an assignment of the government securities to the board</span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">;</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C3">    (9)  </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">Fees associated with the purchase and maintenance of the government securities are the responsibility of the operator</span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">;</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C3">    (10)  </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">The custody agent shall provide monthly statements of the account to the department; and</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C3">    (11)  </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">If the market value of the government securities drops below the required ninety percent of face value, the operator must submit additional funds or post additional financial assurance up to the required financial assurance amount</span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C3">.</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5000002"> </span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0">    </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0-000001">Source:</span><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0"> </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0">52 SDR 24, effective September 10, 2025</span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0">.</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0">    </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0-000001">General Authority:</span><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=45-6B-81"><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0-000003">45-6B-81</span></a><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0">.</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0">    </span><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0-000001">Law Implemented:</span><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=45-6B-20"><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0-000003">45-6B-20</span></a><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=45-6B-20.1"><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0-000003">45-6B-20.1</span></a><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=45-6B-21"><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0-000003">45-6B-21</span></a><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=45-6B-23"><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0-000003">45-6B-23</span></a><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=45-6B-24"><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0-000003">45-6B-24</span></a><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=45-6B-55"><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0-000003">45-6B-55</span></a><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5C0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=45-6B-91"><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0-000003">45-6B-91</span></a><span class="s669b2244-7464-4471-86db-60ed33bee7a5C0">.</span></p><p dir="ltr" class="s669b2244-7464-4471-86db-60ed33bee7a5P0"><span xml:space="preserve" class="s669b2244-7464-4471-86db-60ed33bee7a5000002"> </span></p></div></body></html>