<html> <head> <title>Rule 06:01:06:05 Oversight of financial institutions.</title> <META NAME="Keywords" Content="Administrative Rules 06:01:06:05"> <META NAME="Description" Content="Administrative Rules 06:01:06:05 Oversight of financial institutions."> <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>6:01:06:05.&nbsp;&nbsp;Oversight of financial institutions.</b> The financial institutions shall provide the following:</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;Disclaimer of state liability. The principal and earnings of accounts established under this plan are not guaranteed by any state or the financial institution selected for this investment program. Each document pertaining to the higher education savings plan shall clearly indicate in a typeface and a location that are readily visible that &quot;NOTICE: The account is not insured by any state and neither the principal deposited nor the investment return is guaranteed by any state.&quot;;</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;Investment direction. A financial institution may not permit an account holder to move funds, once deposited, that in any way results in investment direction under IRC; and</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;Reporting requirements. At least annually, each financial institution shall provide each account holder with a statement. The statement shall list a beginning balance, all activity during the year, including any interest paid or dividends earned and any penalties charged, and an ending balance.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 28 SDR 47, effective October 7, 2001.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b>SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=13-63-23">13-63-23.</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=13-63-18">13-63-18</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=13-63-23">13-63-23</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=13-63-30">13-63-30.</A></p> </div> </body> </html>