<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.s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0 { 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.s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2127edbf-4455-44b4-9a93-1c9be5cdbcd6000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0-000003 { 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="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0"><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=20:10:12:15"><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0-000000">20:10:12:15</span></a><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0-000001">.  Financial criteria for licensing.</span><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0"> </span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">F</span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">or a class A license</span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">,</span><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0"> the applicant's balance sheet must show a positive net worth of </span><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">at least </span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">$</span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">250</span><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">,000. </span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">However, to offer voluntary credit sale contracts, a class A license applicant's balance sheet must show a positive net worth of at least $500,000. F</span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">or a class B license</span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">,</span><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0"> the applicant's balance sheet must show a net worth</span><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0"> of at least $100,000</span><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">. In determining net worth </span><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">and working capital </span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">for a class A or class B applicant, the commission may disallow the following assets if the assets are withdrawals of equity or are uncollectible:</span></p><p dir="ltr" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0"><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6000002"> </span></p><p dir="ltr" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0"><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">    (1)  Accounts and notes receivable from or advances to stockholders, owners, partners, employees, or affiliates;</span></p><p dir="ltr" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0"><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">    (2)  Accounts receivable over </span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">one hundred eighty</span><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0"> days old;</span></p><p dir="ltr" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0"><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">    (3)  Investments or equities in cooperatives; or</span></p><p dir="ltr" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0"><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">    (4)  Goodwill.</span></p><p dir="ltr" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0"><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6000002"> </span></p><p dir="ltr" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0"><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">    </span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">T</span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">he balance sheet for a class A or class B applicant must show current assets greater than current liabilities.</span></p><p dir="ltr" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0"><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6000002"> </span></p><p dir="ltr" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0"><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">    </span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0-000001">Source:</span><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0"> 24 SDR 190, effective July 15, 1998; 40 SDR 39, effective September 9, 2013</span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">; 50 SDR 125, effective May 6, 2024</span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">.</span></p><p dir="ltr" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0"><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">    </span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0-000001">General Authority:</span><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=49-45-6"><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0-000003">49-45-6</span></a><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">(5).</span></p><p dir="ltr" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0"><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">    </span><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0-000001">Law Implemented:</span><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=49-45-7"><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0-000003">49-45-7</span></a><span class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6C0">.</span></p><p dir="ltr" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6P0"><span xml:space="preserve" class="s2127edbf-4455-44b4-9a93-1c9be5cdbcd6000002"> </span></p></div></body></html>