<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>p.sb6372f33-357e-4c60-8055-60b8a8c6a169P0 { 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.sb6372f33-357e-4c60-8055-60b8a8c6a169C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sb6372f33-357e-4c60-8055-60b8a8c6a169C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sb6372f33-357e-4c60-8055-60b8a8c6a169C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sb6372f33-357e-4c60-8055-60b8a8c6a169000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sb6372f33-357e-4c60-8055-60b8a8c6a169C0-000003 { 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="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=70:05:03:09"><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0-000000">70:05:03:09</span></a><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0-000001">.  Borrower reporting requirements.</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0"> </span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">Until the prinicipal and any interest is paid in full, t</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">he borrower shall submit an annual report </span><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">to the department </span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">containing the following information:</span></p><p dir="ltr" class="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169000002"> </span></p><p dir="ltr" class="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">    (1)  A summary of </span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">the status of</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0"> the project;</span></p><p dir="ltr" class="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">    (2)  </span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">An update concerning the borrower's ability to comply with the loan agreement</span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">; and</span></p><p dir="ltr" class="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">    (3)  </span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">Any o</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">ther information requested by the board concerning the financial condition of the borrower </span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">and the benefitted entity</span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">.</span></p><p dir="ltr" class="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169000002"> </span></p><p dir="ltr" class="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">    The board may require that financial statements be audited at the expense of the </span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">benefitted entity</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">, if the board reasonably believes the financial statements provided do not clearly or completely state the </span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">benefitted entity</span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">'s financial condition, or are not prepared according to generally accepted accounting principles.</span></p><p dir="ltr" class="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169000002"> </span></p><p dir="ltr" class="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">    </span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0-000001">Source:</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0"> 19 SDR 107, effective January 24, 1993</span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">; 49 SDR 47, effective November 21, 2022</span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">.</span></p><p dir="ltr" class="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">    </span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0-000001">General Authority:</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=49-16C-3"><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0-000003">49-16C-3</span></a><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">.</span></p><p dir="ltr" class="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">    </span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0-000001">Law Implemented:</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=49-16C-3"><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0-000003">49-16C-3</span></a><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">.</span></p><p dir="ltr" class="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169000002"> </span></p><p dir="ltr" class="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">    </span><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0-000001">Cross-Reference:</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0"> Certified Public Accountants and Public Accountants, art </span><a href="https://sdlegislature.gov/Rules?Rule=20:37"><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0-000003">20:37</span></a><span style="white-space: pre-wrap;" class="sb6372f33-357e-4c60-8055-60b8a8c6a169C0">.</span></p><p dir="ltr" class="sb6372f33-357e-4c60-8055-60b8a8c6a169P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sb6372f33-357e-4c60-8055-60b8a8c6a169000002"> </span></p></div></body></html>