reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-2.8 - Investment limits.

51A-17-2.8. Investment limits.
Unless permitted by the director by rule or by order to exceed the limit as set forth in this section, the following investments are permissible under §51A-17-10 to the extent specified:
(1)Receivables that are payable to a licensee from its authorized delegates in the ordinary course of business that are less than seven days old, up to fifty percent of the aggregate value of the licensee's total permissible investments. Receivables that are payable to a licensee from a single authorized delegate in the ordinary course of business may not exceed ten percent of the aggregate value of the licensee's total permissible investments;
(2)The following investments are permissible up to twenty percent per category and combined up to fifty percent of the aggregate value of the licensee's total permissible investments:
(a)A short-term investment bearing an eligible rating. For purposes of this subsection, the term, short-term investment, means an investment made in the previous six months;
(b)Commercial paper bearing an eligible rating;
(c)A bill, note, bond, or debenture bearing an eligible rating;
(d)U.S. tri-party repurchase agreements collateralized at one hundred percent or more with U.S. government or agency securities, municipal bonds, or other securities bearing an eligible rating;
(e)Money market mutual funds rated less than "AAA" and equal to or higher than "A-" by Standard & Poor or the equivalent from any other eligible rating service; and
(f)A mutual fund or other investment fund composed solely and exclusively of one or more permissible investments named in this section.
(3)Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers, at foreign depository institutions are permissible up to ten percent of the aggregate value of the licensee's total permissible investments if the licensee has received a satisfactory rating in its most recent examination, and the foreign depository institution has an eligible rating, is registered under the Foreign Account Tax Compliance Act, is not located in any country subject to sanctions from the Office of Foreign Asset Control, and is not located in a high-risk or non-cooperative jurisdiction as designated by the Financial Action Task Force.
Source: SL 2023, ch 159, §8.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-3 - Entities exempt from chapter.

51A-17-3. Entities exempt from chapter.
This chapter does not apply to:
(1)The United States or any department, agency, or instrumentality thereof;
(2)The United States Post Office;
(3)The state or any political subdivisions thereof;
(4)Banks, bank holding companies, credit unions, building and loan associations, savings and loan associations, savings banks, or mutual banks organized under the laws of any state or the United States, and any subcontractor, agent, or independent contractor that sells payment instruments issued by any such entity or sells such entity's money transmission services on behalf of such entity;
(5)A South Dakota chartered trust company;
(6)The provision of electronic transfer of government benefits for any federal, state, or county governmental agency as defined in Federal Reserve Board Regulation E, by a contractor for and on behalf of the United States or any department, agency, or instrumentality thereof, or any state or any political subdivisions thereof;
(7)An operator of a payment system to the extent that the system provides processing, clearing, or settlement services, between or among persons excluded by this section, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers, or similar funds transfers; and
(8)An agent appointed by a payee to collect and process payment as the agent of the payee, if the agent can demonstrate that:
(a)A written agreement exists between the payee and the agent directing the agent to collect and process payments on the payee's behalf;
(b)The payee holds the agent out to the public as accepting payments on the payee's behalf; and
(c)Payment is treated as received by the payee upon receipt by the agent so there is no risk of loss to the individual initiating the transaction if the agent fails to remit the funds to the payee.
Source:
SL 2008, ch 253, §3; SL 2020, ch 205, § 1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-4 - License to engage in business of money transmission required.

51A-17-4. License to engage in business of money transmission required.
No person, other than a person who is exempt under §51A-17-3, may engage in the business of money transmission in this state without obtaining a license in accordance with this chapter and undergoing a criminal background investigation. A person is engaged in providing money transmission if the person provides those services to residents of this state, including any person who has no physical presence in this state. Each person subject to this section shall be licensed under and maintain a unique identifier through the nationwide mortgage licensing system and registry.
Source:
SL 2008, ch 253, §4; SL 2015, ch 241, §3; SL 2019, ch 206, §1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-5 - Single license to conduct business at multiple locations--Authorized delegates.

51A-17-5. Single license to conduct business at multiple locations--Authorized delegates.
If a licensee has a physical presence in this state, the licensee may conduct its business at one or more locations, directly or indirectly owned, or through one or more authorized delegates, or both, pursuant to the single license granted to the licensee.
Any authorized delegate of a licensee, acting within the scope of authority conferred by a written contract as described in §51A-17-31, is not required to become licensed pursuant to this chapter. However, any such authorized delegate is subject to all other relevant portions of this chapter.
Source:
SL 2008, ch 253, §5.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-6 - Minimum net worth required.

51A-17-6. Minimum net worth required.
Each licensee under this chapter shall maintain at all times a tangible net worth of the greater of one hundred thousand dollars or three percent of total assets for the first one hundred million dollars, two percent of additional assets from one hundred million dollars to one billion dollars, and one-half of one percent of additional assets over one billion dollars. Tangible net worth must be demonstrated in an initial application by the applicant's most recent audited financial statement pursuant to §§51A-17-13(8) and 51A-17-14(5).
The director has the authority to exempt, in whole or in part, any applicant or licensee from the requirements of this section for good cause.
Source: SL 2008, ch 253, §6; SL 2022, ch 178, §4.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-7 - Qualification to do business of corporate and noncorporate applicants and licensees.

51A-17-7. Qualification to do business of corporate and noncorporate applicants and licensees.
Every corporate applicant, at the time of filing of an application for a license under this chapter and at all times after a license is issued, shall be in good standing in the state of its incorporation. All noncorporate applicants shall, at the time of the filing of an application for a license under this chapter and at all times after a license is issued, be registered or qualified to do business in the state.
Source:
SL 2008, ch 253, §7.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-8 - Security device or deposit required.

51A-17-8. Security device or deposit required.
Each application shall be accompanied by a security device acceptable to the director in the amount of one hundred thousand dollars. The director may increase the amount of the security device to a maximum of five hundred thousand dollars upon the basis of the impaired financial condition of a licensee, as evidenced by a reduction in net worth, financial losses, or other relevant criteria. The security device shall be in a form satisfactory to the director and shall run to the state for the benefit of any claimants against the licensee to secure the faithful performance of the obligations of the licensee with respect to the receipt, handling, transmission, and payment of money in connection with the sale and issuance of payment instruments or the transmission of money, or both. In the case of a surety bond, the aggregate liability of the surety may not exceed the principal sum of the bond. Any claimant against the licensee may bring suit directly on the security device or the director may bring suit on behalf of any claimant, either in one action or in successive actions.
In lieu of a security device or of any portion of the principal thereof, as required by this section, the licensee may deposit with the director, or with such banks in this state as the licensee may designate and the director may approve, cash, interest-bearing stocks and bonds, notes, debentures, or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States, or of this state, or of a city, county, school district, or instrumentality of this state, or guaranteed by this state, to an aggregate amount, based upon principal amount or market value, whichever is lower, of not less than the amount of the security device or portion thereof. The securities or cash shall be deposited as provided in this section and held to secure the same obligations as would the security device, but the depositor is entitled to receive all interest and dividends thereon, has the right, with the approval of the director, to substitute other securities for those deposited, and shall be required so to do on written order of the director made for good cause shown.
No security device may be cancelled without thirty days' written notice to the director. Cancellation does not affect any liability incurred or accrued during the period the security device was in effect.
Source:
SL 2008, ch 253, §8.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-9 - Security after licensee ceases operations.

51A-17-9. Security after licensee ceases operations.
The security device shall remain in place for five years after the licensee ceases money transmission operations in the state. However, the director may permit the security device to be reduced or eliminated prior to that time to the extent that the amount of the licensee's payment instruments outstanding in this state are reduced. The director may also permit a licensee to substitute a letter of credit or other form of security device acceptable to the director for the security device in place at the time the licensee ceases money transmission operations in the state.
Source:
SL 2008, ch 253, §9.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-10 - Investments required--Waiver by director.

51A-17-10. Investments required--Waiver by director.
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.
Except for permissible investments enumerated in §51A-17-2, the director, with respect to any licensee, may 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.
Permissible investments, as provided in §51A-17-2, 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, as of January 1, 2023, 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.
Source: SL 2008, ch 253, §10; SL 2022, ch 178, §5; SL 2023, ch 159, §9.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-10.1 - Notification by director to states in which license held--Funds held in statutory trust--Termination of statutory trust.

51A-17-10.1. Notification by director to states in which license held--Funds held in statutory trust--Termination of statutory trust.
Upon the establishment of a statutory trust in accordance with §51A-17-10, or when any funds are drawn on a letter of credit pursuant to this section, 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 is satisfied if performed pursuant to a multistate agreement or through the Nationwide Multistate Licensing System. 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. Any statutory trust established under this section shall be terminated upon extinguishment of all of the licensee's outstanding money transmission obligations.
Source: SL 2023, ch 159, §10.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-10.2 - Other types of investments permissible.

51A-17-10.2. Other types of investments permissible.
The director 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.
Source: SL 2023, ch 159, §11.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-10.3 - Virtual currency transmission.

51A-17-10.3. Virtual currency transmission.
A licensee transmitting virtual currencies shall hold like-kind virtual currencies of the same volume as that held by the licensee but that is obligated to consumers, in lieu of the permissible investments otherwise required in this section.
Source: SL 2023, ch 159, §12.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-11 - Criminal history background check required.

51A-17-11. Criminal history background check required .
Each applicant for licensure under this chapter, except publicly traded corporations and their subsidiaries, shall provide to the nationwide mortgage licensing system and registry a complete set of the applicant's fingerprints for submission to the Federal Bureau of Investigation and any other government agency authorized to receive fingerprints for the purposes of a state, national, and international criminal history background check prior to permanent licensure of the applicant. The division may require a state and federal criminal history background check for any licensee who is the subject of a disciplinary investigation by the division. The failure to submit or cooperate with the criminal history background check under this section may result in denial of an application or revocation of a license. The applicant shall pay for any fees charged for the cost of fingerprinting or the criminal history background check.
Source:
SL 2008, ch 253, §11; SL 2019, ch 206, §2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-12 - Application for license--Form--Contents.

51A-17-12. Application for license--Form--Contents.
Each application for a license under this chapter shall be made in writing on a form prescribed by the director that includes:
(1)The exact name of the applicant, the applicant's principal address, any fictitious or trade name used by the applicant in the conduct of business, and the location of the applicant's business records;
(2)The history of the applicant's material litigation for the preceding five-year period;
(3)A complete set of the applicant's fingerprints and a signed waiver authorizing the division to conduct a criminal history background check of the applicant;
(4)A description of the business activities conducted by the applicant and a history of operations;
(5)A description of the business activities in which the applicant seeks to be engaged in the state;
(6)A list identifying the applicant's proposed authorized delegates in the state, if any, at the time of the filing of the application;
(7)A sample authorized delegate contract, if applicable;
(8)A sample form of payment instrument, if applicable;
(9)Each location at which the applicant and its authorized delegates, if any, propose to conduct the licensed activities in the state; and
(10)The name and address of the clearing bank or banks on which the applicant's payment instruments will be drawn or through which the payment instruments will be payable.
Source:
SL 2008, ch 253, §12; SL 2019, ch 206, §3.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-13 - Corporate applicants--Additional requirements.

51A-17-13. Corporate applicants--Additional requirements.
In addition to the requirements of §51A-17-12, an applicant that is a corporation shall provide:
(1)The date of the applicant's incorporation and state of incorporation;
(2)A certificate of good standing from the state in which the applicant was incorporated;
(3)A description of the corporate structure of the applicant, including the identity of any parent or subsidiary of the applicant, and the disclosure of whether any parent or subsidiary is publicly traded on any stock exchange;
(4)The name, business and residence address, and employment history for the preceding five years of the applicant's executive officers and any officer or manager who will be in charge of the applicant's activities to be licensed;
(5)The name, business and residence address, and employment history for the preceding five years of any key shareholder of the applicant;
(6)The history of material litigation for the preceding five-year period of every executive officer or key shareholder of the applicant;
(7)A complete set of fingerprints and a signed waiver authorizing the division to conduct a criminal history background check of each executive officer or key shareholder of the applicant;
(8)A copy of the applicant's most recent audited financial statement, including balance sheet, statement of income or loss, statement of changes in shareholder equity, and statement of changes in financial position, and, if available, the applicant's audited financial statements for the preceding two-year period. For an applicant that is a wholly owned subsidiary of another corporation, the applicant may submit either the parent corporation's consolidated audited financial statements for the current year and for the preceding two-year period, or the parent corporation's Form 10K reports filed with the United States Securities and Exchange Commission for the preceding three years in lieu of the applicant's financial statements. For an applicant that is a wholly owned subsidiary of a corporation having its principal place of business outside the United States, similar documentation filed with the parent corporation's regulator outside the United States may be submitted to satisfy the requirements of this subdivision; and
(9)A copy of all filings, if any, made by the applicant with the United States Securities and Exchange Commission, or with a similar regulator in a country other than the United States, within the preceding year.
Source:
SL 2008, ch 253, §13; SL 2019, ch 206, §4.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-14 - Noncorporate applicants--Additional requirements.

51A-17-14. Noncorporate applicants--Additional requirements.
In addition to the requirements of §51A-17-12, an applicant that is not a corporation shall provide:
(1)The name, business and residence address, personal financial statement, and employment history for the preceding five years, of each principal of the applicant and the name, business and residence address, and employment history for the preceding five years of any other person who will be in charge of the applicant's activities to be licensed;
(2)The place and date of the applicant's registration or qualification to do business in this state;
(3)The history of material litigation for the preceding five-year period for each individual having any ownership interest in the applicant and each person who exercises supervisory responsibility with respect to the applicant's business activities;
(4)A complete set of fingerprints and a signed waiver authorizing the division to conduct a criminal history background check for each person having any ownership interest in the applicant and each person who exercises supervisory responsibility with respect to the applicant's business activities; and
(5)A copy of the applicant's audited financial statements, including balance sheet, statement of income or loss, and statement of changes in financial position, for the current year and, if available, for the preceding two-year period.
Source:
SL 2008, ch 253, §14; SL 2019, ch 206, §5.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-15 - Waiver of license application requirements.

51A-17-15. Waiver of license application requirements.
The director may, for good cause shown, waive any requirement with respect to any license application or permit a license applicant to submit substituted information in its license application in lieu of the information required. The director may, if the circumstances dictate, require an applicant to provide additional information with respect to any license application.
Source:
SL 2008, ch 253, §15.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-16 - Application fee.

51A-17-16. Application fee .
Each application shall be accompanied by a nonrefundable application fee not to exceed five hundred dollars and a licensee fee not to exceed one thousand dollars. The license fee shall be refunded if the application is denied. The director shall establish the application and license fees by rules promulgated pursuant to chapter 1-26.
Source:
SL 2008, ch 253, §16.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-17 - Applicant--Investigation by director.

51A-17-17. Applicant--Investigation by director.
Upon receiving a complete application, the director shall investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the applicant. The director may conduct an on-site investigation of the applicant, the reasonable cost of which shall be paid by the applicant. If the director finds that the applicant's business will be conducted honestly, fairly, and in a manner commanding the confidence and trust of the community and that the applicant has fulfilled the requirements imposed by this chapter and has paid the required license fee, the director shall issue a license to the applicant authorizing the applicant to engage in the licensed activities in this state until the license expires on the following January first. If these requirements have not been met, the director shall deny the application in writing setting forth the reasons for the denial.
Source:
SL 2008, ch 253, §17; SL 2020, ch 205, § 2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-18 - Denial of application--Request for hearing.

51A-17-18. Denial of application--Request for hearing.
Any applicant aggrieved by a denial issued by the director under this chapter may, at any time within thirty days from the date of written notice of the denial, request a hearing pursuant to chapter 1-26. Any request for hearing shall be made in writing and postmarked within the thirty-day period if sent by way of United States postal mail or actually received by the division within the thirty-day period if sent by way of electronic mail or facsimile.
Source:
SL 2008, ch 253, §18.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-19 - Annual report and renewal fee.

51A-17-19. Annual report and renewal fee.
A licensee shall pay an annual renewal fee not to exceed one thousand dollars. The director shall establish the renewal fee by rules promulgated pursuant to chapter 1-26. The renewal fee shall be accompanied by a report, in a form prescribed by the director, which shall include:
(1)A copy of its most recent audited consolidated annual financial statement, including balance sheet, statement of income or loss, statement of changes in shareholder's equity, and statement of changes in financial position, or, in the case of a licensee that is a wholly owned subsidiary of another corporation, the consolidated audited annual financial statement of the parent corporation may be filed in lieu of the licensee's audited annual financial statement;
(2)The licensee shall provide the number of payment instruments sold by the licensee in the state, the dollar amount of those instruments, and the dollar amount of those instruments currently outstanding, for the calendar year or fiscal year immediately preceding the renewal period, or as much of this information as is available at the time of filing the renewal application;
(3)Any material changes to any of the information submitted by the licensee on its original application which have not previously been reported to the director on any other report required to be filed under this chapter;
(4)A list of the licensee's permissible investments; and
(5)A list of the locations, if any, within this state at which business regulated by this chapter is being conducted by either the licensee or its authorized delegates.
Source:
SL 2008, ch 253, §19.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-20 - Time for filing renewal application, report, and fee.

51A-17-20. Time for filing renewal application, report, and fee.
Any application for renewal of a license in accordance with this chapter shall be filed with the director by December first and shall be accompanied by a fee and report as required under §51A-17-19. Any application for renewal filed with the director after December first and before January first of the next calendar year is subject to the renewal fee and a late fee equal to twenty-five percent of the renewal fee. The director may not issue a license for any application for renewal filed after December thirty-first unless an application is filed in accordance with §51A-17-12.
Source:
SL 2008, ch 253, §20; SL 2015, ch 241, §2; SL 2019, ch 206, §6.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-21 - Limit of licensee's liability.

51A-17-21. Limit of licensee's liability.
A licensee's responsibility to any person for a money transmission conducted on that person's behalf by the licensee or the licensee's authorized delegate is limited to the amount of money transmitted or the face amount of the payment instrument or stored value purchased.
Source:
SL 2008, ch 253, §21.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-22 - Amendment or notice of certain events required.

51A-17-22. Amendment or notice of certain events required.
Within fifteen business days of the occurrence of any one of the events listed in this section, a licensee shall electronically file an amendment or an advance change notice through the nationwide mortgage licensing system and registry describing the event and its expected impact on the licensee's activities in the state. The events include:
(1)Any material changes in information provided in a licensee's application or renewal report;
(2)The filing for bankruptcy or reorganization by the licensee;
(3)The institution of revocation or suspension proceedings against the licensee by any state or governmental authority with regard to the licensees' money transmission activities;
(4)Any felony indictment of the licensee or any of its executive officers, key individuals, or directors related to money transmission activities; and
(5)Any felony conviction of the licensee or any of its executive officers, key individuals, or directors related to money transmission activities.
Source: SL 2008, ch 253, §22; SL 2022, ch 178, §6; SL 2023, ch 159, §13.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-22.1 - Notice by licensee adding or replacing key individual.

51A-17-22.1. Notice by licensee adding or replacing key individual.
A licensee adding or replacing any key individual shall provide notice in a manner prescribed by the director within fifteen days after the effective date of the key individual's appointment and provide information as required by §§51A-17-12, 51A-17-13, and 51A-17-14 within forty-five days of the effective date.
Source: SL 2023, ch 159, §14.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-22.2 - Notice of disapproval of key individual within ninety days--Requirement of notice of disapproval.

51A-17-22.2. Notice of disapproval of key individual within ninety days--Requirement of notice of disapproval.
Within ninety days of the date on which the notice provided pursuant to §51A-17-23 was determined to be complete, the director may issue a notice of disapproval of a key individual if the competence, experience, character, or integrity of the individual would not be in the best interests of the public or the customers of the licensee to permit the individual to be a key individual of such licensee. The key individual is deemed approved if not disapproved within ninety days after the date on which the notice was determined to be complete.
A notice of disapproval shall contain a statement of the basis for disapproval and shall be sent to the licensee and the disapproved individual. A licensee may appeal a notice of disapproval pursuant to chapter 1-26 after receipt of such notice of disapproval.
Source: SL 2023, ch 159, §15.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-22.3 - Acceptance of key individual notice review and disapproval by another state--South Dakota as investigative state.

51A-17-22.3. Acceptance of key individual notice review and disapproval by another state--South Dakota as investigative state.
If a multistate licensing process includes a key individual notice review and disapproval process pursuant to §51A-17-23 and the licensee avails itself or is otherwise subject to the multistate licensing process, the director is authorized and encouraged to accept the determination of another state if the investigating state has sufficient staffing, expertise, and minimum standards for the purposes of §51A-17-23. If South Dakota is the lead investigative state, the director is authorized and encouraged to investigate the applicant pursuant to §51A-17-23 and the timeframes established by agreement through the multistate licensing process.
Source: SL 2023, ch 159, §16.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-23 - Notice of proposed change of control--Investigation--Approval of change.

51A-17-23. Notice of proposed change of control--Investigation--Approval of change.
A licensee shall electronically file an advance change notice through the nationwide mortgage licensing system and registry of a proposed change of control within fifteen days after learning of the proposed change of control and request approval of the acquisition. After review of a request for approval, the director may require the licensee to provide additional information concerning the proposed persons in control of the licensee. The additional information is limited to the same types required of the licensee or persons in control of the licensee as part of its original license or renewal application. The director shall approve a request for change of control if, after investigation, the director determines that the person or group of persons requesting approval has the competence, experience, character, and general fitness to operate the licensee or person in control of the licensee in a lawful and proper manner and that the interests of the public will not be jeopardized by the change of control.
Source: SL 2008, ch 253, §23; SL 2022, ch 178, §7.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-24 - Persons exempt from change of control requirements--Notice.

51A-17-24. Persons exempt from change of control requirements--Notice.
The following persons are exempt from the requirements of §51A-17-23, but the licensee shall notify the director of any such change of control:
(1)A person that acts as a proxy for the sole purpose of voting at a designated meeting of the security holders or holders of voting interests of a licensee or person in control of a licensee;
(2)A person that acquires control of a licensee by devise or descent;
(3)A person that acquires control as a personal representative, custodian, guardian, conservator, or trustee, or as an officer appointed by a court of competent jurisdiction or by operation of law; and
(4)A person that the director by rule or order exempts in the public interest.
Source:
SL 2008, ch 253, §24.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-25 - Public offering of securities exempt from change of control requirements.

51A-17-25. Public offering of securities exempt from change of control requirements.
Section 51A-17-23 does not apply to public offerings of securities.
Source:
SL 2008, ch 253, §25.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-26 - Request for determination on change of control from director.

51A-17-26. Request for determination on change of control from director.
Before filing a request for approval to acquire control, a person may request in writing a determination from the director as to whether the person would be considered a person in control of a licensee upon consummation of a proposed transaction. If the director determines that the person would not be a person in control of a licensee, the director shall enter an order to that effect and the proposed person and transaction is not subject to the requirements of §51A-17-23.
Source:
SL 2008, ch 253, §26.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-27 - Examination or investigation--Acceptance of report by other examining agencies or federal government.

51A-17-27. Examination or investigation--Acceptance of report by other examining agencies or federal government.
The director may conduct an examination or investigation of a licensee or authorized delegate or otherwise take independent action authorized by this chapter, rule adopted under this chapter and promulgated pursuant to chapter 1-26, or order issued under this chapter that is reasonably necessary to administer and enforce this chapter, rules adopted under this chapter and promulgated pursuant to chapter 1-26, and other applicable law. The director may:
(1)Conduct an examination either on-site or off-site;
(2)Conduct an examination in conjunction with an examination conducted by representatives of another state agency, an agency of another state, or the federal government;
(3)Accept the examination report of another state agency, agency of another state, or the federal government, or a report prepared by an independent accounting firm. A report accepted under this subdivision is considered an official report of the director; and
(4)Summon and examine, under oath, a key individual, employee of a licensee, or authorized delegate and require the individual, employee, or delegate to produce records regarding any matter related to the condition and business of the licensee or authorized delegate.
A licensee or authorized delegate shall provide, and the director must have full and complete access to, all records the director may reasonably require to conduct a complete examination. The records must be provided at the location and in the format specified by the director. The director may utilize multistate record production standards and examination procedures when the standards will reasonably achieve the requirements of this section.
Unless otherwise directed by the director, a licensee shall pay all costs reasonably incurred in connection with an examination of the licensee or the licensee's authorized delegates.
Source: SL 2008, ch 253, §27; SL 2022, ch 178, §8.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-28 - Request for financial data or examination upon reasonable basis to believe licensee in noncompliance.

51A-17-28. Request for financial data or examination upon reasonable basis to believe licensee in noncompliance.
The director may request financial data from a licensee in addition to that required under §51A-17-19, or conduct an examination of any authorized delegate or location of a licensee within this state without prior notice to the authorized delegate or licensee only if the director has a reasonable basis to believe that the licensee or authorized delegate is in noncompliance with this chapter. If the director examines an authorized delegate's operations, the authorized delegate shall pay all reasonably incurred costs of such examination. If the director examines a licensee's location within the state, the licensee shall pay all reasonably incurred costs of such examination.
Source: SL 2008, ch 253, §28; SL 2022, ch 178, §9.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-29 - Records required and open to inspection.

51A-17-29. Records required and open to inspection.
Each licensee shall make, keep, and preserve the following books, accounts, and other records for a period of three years and which shall be open to inspection by the director:
(1)A record or records of each payment instrument and stored value sold;
(2)A general ledger, which general ledger shall be posted at least monthly, containing all assets, liabilities, capital, income, and expense accounts;
(3)Bank statements and bank reconciliation records;
(4)Records of outstanding payment instruments and stored value;
(5)Records of each payment instrument and stored value paid within the three-year period;
(6)A list of the names and addresses of all of the licensee's authorized delegates; and
(7)Any other records the director reasonably requires by rule promulgated pursuant to chapter 1-26.
Maintenance of such documents as are required by this section in a photographic, electronic, or other similar form constitutes compliance with this section. Records may be maintained at a location other than within this state if they are made accessible to the director on seven business days written notice.
Source:
SL 2008, ch 253, §29.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-30 - Confidentiality of information--Exception.

51A-17-30. Confidentiality of information--Exception.
All information or reports obtained by the director from an applicant, licensee, or authorized delegate, whether obtained through reports, applications, examination, audits, investigation, or otherwise, including all information contained in or related to examination, investigation, operating, or condition reports prepared by, on behalf of, or for the use of the director, or financial statements, balance sheets, or authorized delegate information, are confidential. However, the director may disclose confidential information to officials and examiners of other state or federal regulatory authorities or to appropriate prosecuting attorneys.
This section does not prohibit the director from disclosing to the public a list of persons licensed under this chapter or the aggregated financial data on those licensees.
Source:
SL 2008, ch 253, §30.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-31 - Authorized delegate--Written contract required--Contents.

51A-17-31. Authorized delegate--Written contract required--Contents.
Any licensee desiring to conduct licensed activities through an authorized delegate shall authorize each delegate to operate pursuant to an express written contract. Any such contract entered into after July 1, 2008, shall provide the following:
(1)That the licensee appoints the person as its delegate with authority to engage in money transmission on behalf of the licensee;
(2)That neither a licensee nor an authorized delegate may authorize subdelegates without the written consent of the director; and
(3)That licensees are subject to supervision and regulation by the director.
Source:
SL 2008, ch 253, §31.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-32 - Standards of conduct of authorized delegate.

51A-17-32. Standards of conduct of authorized delegate.
An authorized delegate shall adhere to the following standards of conduct:
(1)No authorized delegate may make any fraudulent or false statement or misrepresentation to a licensee or to the director;
(2)All money transmission or sale or issuance of payment instrument activities conducted by an authorized delegate shall be strictly in accordance with the licensee's written procedures provided to the authorized delegate;
(3)An authorized delegate shall remit all money owing to the licensee in accordance with the terms of the contract between the licensee and the authorized delegate. The failure of an authorized delegate to remit all money owing to a licensee within the time presented shall result in liability of the authorized delegate to the licensee for the licensee's actual damages. The director may establish, by rules promulgated pursuant to chapter 1-26, the maximum remittance time;
(4)An authorized delegate is deemed to consent to the director's inspection, with or without prior notice to the licensee or authorized delegate, of the books and records of authorized delegates of the licensee if the director has a reasonable basis to believe that the licensee or authorized delegate is in noncompliance with this chapter; and
(5)An authorized delegate is under a duty to act only as authorized under the contract with the licensee. An authorized delegate who exceeds the authority grant under the contract is subject to cancellation of the contract and further disciplinary action by the director.
Source:
SL 2008, ch 253, §32.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-33 - Funds received by authorized delegate constitute trust funds.

51A-17-33. Funds received by authorized delegate constitute trust funds.
Any funds, less fees, received by an authorized delegate of a licensee from the sale or delivery of a payment instrument issued by a licensee or received by an authorized delegate for transmission shall, from the time such funds are received by such authorized delegate until such time when the funds or an equivalent amount are remitted by the authorized delegate to the licensee, constitute trust funds owned by and belonging to the licensee. If an authorized delegate commingles any such funds with any other funds or property owned or controlled by the authorized delegate, any commingled proceeds and other property shall be impressed with a trust in favor of the licensee in an amount equal to the amount of the proceeds due the licensee.
Source:
SL 2008, ch 253, §33.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-34 - Report of theft or loss.

51A-17-34. Report of theft or loss.
An authorized delegate shall report to the licensee the theft or loss of payment instruments and stored value within twenty-four hours from the time the authorized delegate knew or should have known of such theft or loss.
Source:
SL 2008, ch 253, §34.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 17 - Money Transmission › Section 51A-17-35 - Suspension or revocation of license.

51A-17-35. Suspension or revocation of license.
The director may suspend or revoke a licensee's license if the director finds that:
(1)Any fact or condition exists that, if it had existed at the time when the licensee applied for its license, would have been grounds for denying such application;
(2)The licensee's net worth becomes inadequate and the licensee, after ten days written notice from the director, fails to take such steps as the director deems necessary to remedy such deficiency;
(3)The licensee violates any material provision of this chapter or any rule or order promulgated by the director under authority of this chapter;
(4)The licensee is convicted of a violation of a state or federal anti-money laundering statute or is subject to an enforcement action for a violation of a state or federal anti-money laundering statute;
(5)The licensee is conducting its business in an unsafe or unsound manner;
(6)The licensee is insolvent;
(7)The licensee has suspended payment of its obligations, has made an assignment for the benefit of its creditors, or has admitted in writing its inability to pay its debts as they become due;
(8)The licensee has applied for an adjudication of bankruptcy, reorganization, arrangement, or other relief under any bankruptcy;
(9)The licensee refuses to permit the director to make any examination authorized by this chapter;
(10)The licensee fails to make any report required by this chapter; or
(11)The competence, experience, character, or general fitness of the licensee indicates that it is not in the public interest to permit the licensee to conduct its business.
Source:
SL 2008, ch 253, §35.