South Dakota § 51A-17-104 Expiration of letter of credit--Funds held in trust by director.

South Dakota Statutes

§ 51A-17-104 — Expiration of letter of credit--Funds held in trust by director.

South Dakota § 51A-17-104

Title 51ABANKS AND BANKING

Ch. 51A-16MONEY TRANSMISSION

This text of South Dakota § 51A-17-104 (Expiration of letter of credit--Funds held in trust by director.) is published on Counsel Stack Legal Research, covering South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.D. Codified Laws § 51A-17-104 (2026).

Text

In the event of any notice of expiration or non-extension of a letter of credit issued under subdivision 51A-17-102 (4), the licensee shall be required to demonstrate to the satisfaction of the director, fifteen days prior to expiration, that the licensee maintains and will maintain permissible investments in accordance with subdivision 51A-17-101 (1) upon the expiration of the letter of credit. If the licensee is not able to do so, the director may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments in accordance with subdivision 51A-17-101 (1). Any such draw shall be offset against the licensee's outstanding money transmission obligations. The drawn funds shall be held in trust by the director or the

Free access — add to your briefcase to read the full text and ask questions with AI

In the event of any notice of expiration or non-extension of a letter of credit issued under subdivision 51A-17-102 (4), the licensee shall be required to demonstrate to the satisfaction of the director, fifteen days prior to expiration, that the licensee maintains and will maintain permissible investments in accordance with subdivision 51A-17-101 (1) upon the expiration of the letter of credit. If the licensee is not able to do so, the director may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments in accordance with subdivision 51A-17-101 (1). Any such draw shall be offset against the licensee's outstanding money transmission obligations. The drawn funds shall be held in trust by the director or the director’s designated agent, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations.