<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.sebb1ba6a-d975-4f73-b916-b286ed7e2df0P0 { 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.sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sebb1ba6a-d975-4f73-b916-b286ed7e2df0000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0-000003 { 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="sebb1ba6a-d975-4f73-b916-b286ed7e2df0P0"><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=12:03:03:05"><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0-000000">12:03:03:05</span></a><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0-000001">.  Approval procedure for loan application.</span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0"> Upon approval of a loan application</span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0"> by the commission and the signature of the commission's chair or designated signatory</span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">, the commission shall </span><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">provide the district with</span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0"> a promissory note containing the terms and conditions of the loan. If the </span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">purpose of the </span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">loan is to purchase equipment, a security agreement and Uniform Commercial Code (UCC) financing statement </span><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">must also be provided</span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">. The chair of the board of supervisors </span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">or the designated signatory </span><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">shall sign the promissory note and the security agreement and UCC financing statement, if applicable, in the name of the district</span><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">,</span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0"> at a district meeting. The district shall submit the promissory note, security agreement, </span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">and </span><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">UCC financing statement to the division</span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0"> for the disbursal of</span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0"> funds.</span></p><p dir="ltr" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0P0"><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0000002"> </span></p><p dir="ltr" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0P0"><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">    </span><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0-000001">Source:</span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0"> 11 SDR 59, effective October 29, 1984; 12 SDR 128, 12 SDR 154, effective July 1, 1986</span><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">; 49 SDR 48, effective November 23, 2022</span><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">.</span></p><p dir="ltr" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0P0"><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">    </span><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0-000001">General Authority:</span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=38-8-53"><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0-000003">38-8-53</span></a><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">.</span></p><p dir="ltr" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0P0"><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">    </span><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0-000001">Law Implemented:</span><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=38-8-53"><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0-000003">38-8-53</span></a><span class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0C0">.</span></p><p dir="ltr" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0P0"><span xml:space="preserve" class="sebb1ba6a-d975-4f73-b916-b286ed7e2df0000002"> </span></p></div></body></html>