S.D. Admin. R. 12:07:12:21

Current through Register Vol. 51, page 67, December 16, 2024

Section 12:07:12:21 - Lender's responsibilities for a participation loan

During the application process, the lender shall ensure that the loan proposal receives the same degree of analysis as any other loan proposal. Upon approval of loan participation by the secretary, the lender shall:

(1) Execute the initial loan and disburse the proceeds;

(2) Execute and retain the loan documentation and furnish a copy of the loan documentation to the office;

(3) Obtain and maintain documentation necessary for the perfection of a security interest and furnish copies to the office;

(4) Serve as the point of contact for the administration of the loan and the participation and apprise the office of the loan status; and

(5) Service and manage the loan and the participation in accordance with its usual practices and exercise the same degree of care as it does with other loans. The lender may request loan servicing assistance from the office.

S.D. Admin. R. 12:07:12:21

17 SDR 141, effective 3/25/1991.

General Authority: SDCL 38-6-8.1.

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