<html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 51A-17-101 - Maintenance of permissible investments.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s9e70bc52b1074434bc9acafd7d0ccb5aNormal { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s9e70bc52b1074434bc9acafd7d0ccb5aSENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s9e70bc52b1074434bc9acafd7d0ccb5aCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s9e70bc52b1074434bc9acafd7d0ccb5aStatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; 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margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 51A-17-101 - Maintenance of permissible investments."><meta property="og:description" content="SDLRC Codified Law 51A-17-101 - Maintenance of permissible investments."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/51A-17-101"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="s9e70bc52b1074434bc9acafd7d0ccb5aNormal"><a href="https://sdlegislature.gov/Statutes?Statute=51A-17-101" rel="noopener"><span class="s9e70bc52b1074434bc9acafd7d0ccb5aSENU">51A-17-101</span></a><span xml:space="preserve" class="s9e70bc52b1074434bc9acafd7d0ccb5aSENU">. </span><span class="s9e70bc52b1074434bc9acafd7d0ccb5aCL">Maintenance of permissible investments.</span></p><p dir="ltr" class="s9e70bc52b1074434bc9acafd7d0ccb5aStatuteNumber1"><span class="s9e70bc52b1074434bc9acafd7d0ccb5aDefaultParagraphFont">(1)    A licensee shall maintain at all times permissible investments that have a market value computed in accordance with United States generally accepted accounting principles of not less than the aggregate amount of all of its outstanding money transmission obligations.</span></p><p dir="ltr" class="s9e70bc52b1074434bc9acafd7d0ccb5aStatuteNumber1"><span xml:space="preserve" class="s9e70bc52b1074434bc9acafd7d0ccb5aDefaultParagraphFont">(2)    Except for permissible investments enumerated in § </span><a href="https://sdlegislature.gov/Statutes?Statute=51A-17-102" rel="noopener"><span class="s9e70bc52b1074434bc9acafd7d0ccb5aDefaultParagraphFont">51A-17-102</span></a><span class="s9e70bc52b1074434bc9acafd7d0ccb5aDefaultParagraphFont">, the director, with respect to any licensee, may by rule or order limit the extent to which a specific investment maintained by a licensee within a class of permissible investments may be considered a permissible investment, if the specific investment represents undue risk to customers, not reflected in the market value of investments.</span></p><p dir="ltr" class="s9e70bc52b1074434bc9acafd7d0ccb5aStatuteNumber1"><span class="s9e70bc52b1074434bc9acafd7d0ccb5aDefaultParagraphFont">(3)    Permissible investments, even if commingled with other assets of the licensee, are held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations in the event of insolvency, the filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. § 101 to 110 (January 1, 2024) for bankruptcy or reorganization, the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or in the event of an action by a creditor against the licensee who is not a beneficiary of this statutory trust. No permissible investments impressed with a trust pursuant to this section shall be subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiary of this statutory trust.</span></p><p dir="ltr" class="s9e70bc52b1074434bc9acafd7d0ccb5aStatuteNumber1"><span xml:space="preserve" class="s9e70bc52b1074434bc9acafd7d0ccb5aDefaultParagraphFont">(4)    Upon the establishment of a statutory trust in accordance with subdivision (3) of this section or when any funds are drawn on a letter of credit pursuant to subdivision </span><a href="https://sdlegislature.gov/Statutes?Statute=51A-17-102" rel="noopener"><span class="s9e70bc52b1074434bc9acafd7d0ccb5aDefaultParagraphFont">51A-17-102</span></a><span class="s9e70bc52b1074434bc9acafd7d0ccb5aDefaultParagraphFont">(4), the director shall notify the applicable regulator of each state in which the licensee is licensed to engage in money transmission, if any, of the establishment of the trust or the funds drawn on the letter of credit, as applicable. Notice shall be deemed satisfied if performed pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and any other permissible investments held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations, are deemed held in trust for the benefit of such purchasers and holders on a pro rata and equitable basis in accordance with statutes pursuant to which permissible investments are required to be held in this state, and other states, as applicable. Any statutory trust established hereunder shall be terminated upon extinguishment of all of the licensee's outstanding money transmission obligations.</span></p><p dir="ltr" class="s9e70bc52b1074434bc9acafd7d0ccb5aStatuteNumber1"><span class="s9e70bc52b1074434bc9acafd7d0ccb5aDefaultParagraphFont">(5)    The director, by rule or by order, may allow other types of investments that the director determines are of sufficient liquidity and quality to be a permissible investment. The director is authorized to participate in efforts with other state regulators to determine that other types of investments are of sufficient liquidity and quality to be a permissible investment.</span></p><p dir="ltr" class="s9e70bc52b1074434bc9acafd7d0ccb5aNormal"><span xml:space="preserve" class="s9e70bc52b1074434bc9acafd7d0ccb5a000000"> </span></p><p dir="ltr" class="s9e70bc52b1074434bc9acafd7d0ccb5aNoIndent"><span xml:space="preserve" class="s9e70bc52b1074434bc9acafd7d0ccb5aDefaultParagraphFont-000001">Source: </span><span class="s9e70bc52b1074434bc9acafd7d0ccb5aSCL">SL 2024, ch 196, § 50.</span></p></div></body></html>