S.D. Admin. R. 20:10:12:15

Current through Register Vol. 50, page 159, June 17, 2024

Section 20:10:12:15 - Financial criteria for licensing

At a minimum, for a class A license the applicant's balance sheet must show a positive net worth of at least $250,000. However, in order to offer voluntary credit sale contracts, a class A license applicant's balance sheet must show a positive net worth of $500,000. At a minimum, for a class B license the applicant's balance sheet must show a net worth of at least $100,000. In determining net worth for a class A or class B applicant, the commission may disallow the following assets if the assets are withdrawals of equity or are uncollectible:

(1) Accounts and notes receivable from or advances to stockholders, owners, partners, employees, or affiliates;

(2) Accounts receivable over 180 days old;

(3) Investments or equities in cooperatives; or

(4) Goodwill.

At a minimum, the balance sheet for a class A or class B applicant must show current assets greater than current liabilities. In determining working capital, the commission may disallow the following assets if the assets are withdrawals of equity or are uncollectible:

(1) Accounts and notes receivable from or advances to stockholders, owners, partners, employees, or affiliates;

(2) Accounts receivable over 180 days old;

(3) Investments or equities in cooperatives; or

(4) Goodwill.

S.D. Admin. R. 20:10:12:15

24 SDR 190, effective 7/15/1998; 40 SDR 39, effective 9/9/2013; 50 SDR 125, effective 5/6/2024

General Authority: SDCL 49-45-6(5).

Law Implemented: SDCL 49-45-7.