S.D. Admin. R. 20:18:20.01:00

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

Section 20:18:20.01:00 - Definitions

Terms used in this chapter mean:

(1) "Check," a written, unconditional order to pay or deliver a sum certain in money, drawn on a financial institution, payable on demand, and signed by one or more drawer, whether negotiable or nonnegotiable. A check includes drafts, checks issued through credit institutions (also known as credit card checks and Com-Checks), warrants, negotiable orders of withdrawal, counter checks, and any other means of ordering the payment of money;

(2) "Dishonored," any check which is returned to a licensee (whether actually, or constructively, by delivery to a financial transaction agent) by the financial institution upon which the check was drawn, for any reason pertaining to the inability to honor or pay the instrument;

(3) "Financial institution," a bank, depository, or other person which provides financial, banking, and similar services for investors, depositors, and debtors;

(4) "Financial transaction agent," a factor, collection agent or agency, accounts receivable agent or agency, accountant, or any other type of financial institution, which acts pursuant to an agreement with a licensee whereby the financial transaction agent is charged with securing the collection of any dishonored check from its maker, by any means whether with or without recourse to return the collection account to the licensee as uncollectible.

S.D. Admin. R. 20:18:20.01:00

25 SDR 172, effective 7/11/1999.

General Authority: SDCL 42-7B-7, 42-7B-11(11)(13).

Law Implemented: SDCL 42-7B-7, 42-7B-11(11).