Regulatory Alerts2020-01-01
South Dakota Division of Banking Memorandum on House Bill 1082
The South Dakota Division of Banking issued a memorandum to clarify that House Bill 1082 excludes lending between family members from the statutory definition of the business of lending money. The regulation further establishes that money lending licenses are not required when an individual or business provides financing for the sale of assets or real estate, such as through a contract for deed. This exemption applies provided that the interest rate charged does not exceed the maximum rate permitted under South Dakota Codified Laws section 54-4-44.
DIVISION OF BANKING 1601 N. Harrison Avenue, Suite 1, Pierre, SD 57501 MEMORANDUM 605-773-3421 NUMBER: 20-022 DATE: June 15, 2018 TO: SOUTH DAKOTA MONEY LENDERS FROM: BRET AFDAHL, Director RE: HOUSE BILL 1082 House Bill 1082 (HB 1082) seeks to clarify that the “business of lending money” as defined in SDCL 54-4-36(2) does not include lending between family members. Further, HB 1082 clarifies that a money lending license is not necessary in situations of an individual or business selling assets or real estate and providing financing for the same, such as a contract for deed so long as the interest rate for the transaction does not exceed the rate permitted under SDCL 54-4-44. If you would like additional information regarding this bill, or if you have any questions, please do not hesitate to contact the South Division of Banking at 605-773-3421.