S.D. Admin. R. 12:07:12:15

Current through Register Vol. 51, page 71, January 6, 2025

Section 12:07:12:15 - Participation process

Once the secretary has approved the application for participation by the office, the office shall proceed as follows:

(1) The office shall issue a commitment to participate advising the lender that the material submitted is approved subject to the completion of all conditions and requirements set forth in the commitment to participate;

(2) Concurrent with the loan closing or shortly thereafter, the office and the lender shall execute a participation certificate and agreement. The participation certificate and agreement shall include:

(a) The terms of the participation;

(b) The terms for the collection of the proceeds and expenses;

(c) The servicing fees; and

(d) The responsibilities of all parties;

(3) The office shall issue a warrant to the lender in the amount of the office's portion of participation. If the construction or inception will cover more than four months, the office may issue a series of warrants totaling the amount scheduled in the participation agreement.

S.D. Admin. R. 12:07:12:15

17 SDR 141, effective 3/25/1991.

General Authority: SDCL 38-6-8.1.

Law Implemented: SDCL 38-6-3, 38-6-8.