20:36:04:01.  General requirements for books, records, and indexes. Before any person is entitled to a certificate of registration to engage in abstracting under the laws of this state, the person shall have an approved abstract plant containing the following:

          (1)  A complete index showing every instrument recorded in the register of deeds office in the county in which the person proposes to operate, properly listed against the specific property which it affects; a separate miscellaneous index showing all recorded instruments which do not affect specific property; a general index showing all county aid, state, and federal tax liens as recorded in the Register of Deeds Office in the county in which the person proposes to operate; and all unsatisfied judgments as filed with the South Dakota Unified Judicial System in the county in which the person proposes to operate. Each index may be compiled on cards, in bound books, in electronic form, or a loose leaf form, but must be made from an actual check of each page of each book of recorded instruments in said office, and in no case will a copy or film of the numerical index in the office of the Register of Deeds be accepted;

          (2)  If a numerical index is used showing only the book and page of each instrument, the index must be supplemented by a take-off of each instrument properly arranged in the abstract plant so it can be located from the person's numerical index. Such take-off shall be sufficiently complete to show all essential parts of each instrument, such names, dates, descriptions, acknowledgments, filings, and any special or unusual recitals, covenants, warranties, exceptions, or reservations. Such take-off may be made on cards on loose leaf form or in bound books or film or any other archivable form as approved by the board;

          (3)  If the form of index is a card, a loose leaf sheet, an electronic form, or the page of a bound book showing all instruments affecting a particular piece of farm land, or town lot or block, then such index must be in such form as to show all names, dates, acknowledgments, seals, and filings, and indicating any special or unusual recitals in each instrument.

          Source: SL 1975, ch 16, § 1; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 34 SDR 73, effective September 17, 2007; 46 SDR 42, effective October 3, 2019.

          General Authority: SDCL 36-13-6.1(7).

          Law Implemented: SDCL 36-13-10.

          20:36:04:01.01.  Penalty for failure to comply with § 20:36:04:01. Failing to comply with § 20:36:04:01 shall result in the suspension or denial of a certificate of registration until such time as compliance is demonstrated.

          Source: 7 SDR 72, effective February 1, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 46 SDR 42, effective October 3, 2019.

          General Authority: SDCL 36-13-6.1(7).

          Law Implemented: SDCL 36-13-10.

          20:36:04:04.  Examination of new and purchased plants. Before any person begins assembly of an abstract plant for the purpose of qualifying for a certificate of registration the person shall contact the board. The board shall advise the person as to procedure and shall observe the methods used during the construction of the plant. Whenever any person has completed assembly of an abstract plant or intends to purchase an already registered plant the person shall notify the board in writing that the plant is ready for examination and state the place at which the plant may be examined. The executive secretary shall immediately communicate the writing's contents to all members of the board and the board shall fix a date for examination of the plant, within 60 days of notification, with notice to the applicant of the examination. The examination may be conducted by one or more members of the board as may be ordered by the board and such member or members shall then make their examinations and report within 60 days after date of the order. During the 60-day period different examinations may be made at different times by the member or members of the board, and the applicant shall cooperate fully in showing the condition of the plant and explaining anything required of the applicant in connection with the examination. The applicant shall afford the member or members full opportunity to examine the plant privately and without the applicant's presence if any of the members so desire. After the member or members of the board have completed their examination of the plant they shall make a joint report or individual reports in writing to the board together with their recommendations, and the reports shall be filed with and become an official record of the board. The board shall make its official decisions as to the sufficiency of the plant, and file the decision in the office of the board and a copy of the report and the decision shall then be sent by certified mail, return receipt requested, to the address where the plant was located at the time of examination. If the decision of the board requires certain corrections or additions, or both, to the plant are necessary, the decision shall specify the necessary changes and may fix additional time for the applicant to become compliant and notify the board. Upon notification, the board shall then examine the plant and make its decision as provided under this section.

          Source: SL 1975, ch 16, § 1; 3 SDR 49, effective January 17, 1976; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 34 SDR 73, effective September 17, 2007; 46 SDR 42, effective October 3, 2019.

          General Authority: SDCL 36-13-6.1(7).

          Law Implemented: SDCL 36-13-10.

          20:36:04:04.03.  Grading of plant examination. Plants shall be graded on a scale of percentage, with 80 percent being required for approval. If the plant fails in any of the areas set forth in § 20:36:04:04.01, the board may establish the plant's sufficiency in the areas in which it passed and permit it to be reexamined only in the areas in which it failed.

          When grading areas in subdivisions 20:36:04:04.01(1) and (2), the board shall use the following criteria: If there are any discrepancies between the indexes in the plant and those in the office of the register of deeds or another registered plant in the county, the board shall check the recorded instruments in question to see whether the error or discrepancy is in the office of the register of deeds or in the plant. If an error is found in the chain from the plant being examined, it will result in a reduction in the credit given for that chain. If a chain from the plant being examined shows an instrument properly posted which is not shown on the chain from the office of the register of deeds, additional credit will be given to the plant which will be used to offset a reduction in the credit given for that chain.

          Source: 3 SDR 49, effective January 17, 1976; 6 SDR 11, effective August 14, 1979; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 46 SDR 42, effective October 3, 2019.

          General Authority: SDCL 36-13-6.1(7).

          Law Implemented: SDCL 36-13-10.

          20:36:04:04.04.  Fee for plant examination. An examination fee of $500 shall be charged for each examination of new and purchased plants for the purpose of qualifying for a certificate of registration. The fee shall be payable to the board when application is made for a certificate of registration.

          Source: 7 SDR 72, effective February 1, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 34 SDR 73, effective September 17, 2007; 46 SDR 42, effective October 3, 2019.

          General Authority: SDCL 36-13-6.1(2).

          Law Implemented: SDCL 36-13-10.

          20:36:04:05.  Examination for upkeep and maintenance of existing plants. The board may, upon its own election, not more often than once each year, or at any time whenever a sworn complaint is deemed by the board to be sufficient for the purpose filed with it, examine or reexamine any existing abstract plant for the purpose of ascertaining whether it is being kept current and maintained in accordance with the laws and rules of this state. In such cases the board shall fix a time and place for such examination and the method of examination and notify the person, firm, or corporation in charge of the examination. At least 10 days' notice shall be given to such person and if the examination is being made pursuant to a sworn complaint a copy of the complaint shall be furnished to the applicant with the notice. Thereafter the board shall make its examination to whatever extent it deems advisable and the persons in charge of the plant shall cooperate with the board. The decision of the board shall be made and served upon the persons in charge of the plant in accordance with the provisions of SDCL 36-13-10.

          Source: SL 1975, ch 16, § 1; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 46 SDR 42, effective October 3, 2019.

          General Authority: SDCL 36-13-6.1(7).

          Law Implemented: SDCL 36-13-10.

          20:36:04:06.  Examinations upon request --  When made -- Fees and expense. Any person, firm, or corporation in charge of an abstract plant that has previously been approved for operation by the board may file with the board a written request for a reexamination of the plant, stating the reasons for requesting the examination and the board shall grant the request upon condition that the applicant pay the per diem and expense of the members of the board required to make the examination.

          Source: SL 1975, ch 16, § 1; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 46 SDR 42, effective October 3, 2019.

          General Authority: SDCL 36-13-6.1(7).

          Law Implemented: SDCL 36-13-10.

          20:36:04:07.  Certificate of qualification of plant. Whenever the board has examined or reexamined any abstract plant after the effective date of these rules and has approved the plant, it shall issue and deliver to the person in charge of the plant by registered mail to the business address of the plant, person, firm, or corporation as registered with the board a certificate in appropriate form for public display, signed by the president, if all concur, or a majority of the members of the board, and attested by the secretary-treasurer under the seal of the board, whether or not the secretary-treasurer agrees with the decision. The certificate shall state the date on which the plant was found to be complete, the date of the examination, the date of issue of the certificate, and any other matters as the board deems advisable to establish the legal qualification of the plant.

          Source: SL 1975, ch 16, § 1; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 46 SDR 42, effective October 3, 2019.

          General Authority: SDCL 36-13-6.1(7).

          Law Implemented: SDCL 36-13-10.