Banking

Money Lenders

The State of South Dakota considers anyone engaged in the business of lending money, including creating and holding or purchasing or acquiring retail installment contracts, to be a Money Lender and subject to the licensing requirements of South Dakota Codified Laws (SDCL) Chapter 54-4.

Payday and title lenders are also licensed as Money Lenders under SDCL Chapter 54-4. The Money Lender License Application can be submitted through the Nationwide Multistate Licensing System & Registry (NMLS).

The NMLS website provides step-by-step instructions on how to access the system, guides on how to complete the MU forms, each state's transition plans and requirements, tutorials, current and future participating states, system alerts, system processing fees and general background information.

Industrial Hemp Guidance

On Feb. 9, 2021, the Division of Banking offered guidance on Industrial Hemp. Read the guidance.

Original Guidance on Initiated Measure 21

On Nov. 14, 2016, the Division of Banking also offered guidance on Initiated Measure 21. Read the original guidance.

Find a summary of Initiated Measure 21 (IM 21) which was approved by voters on Nov. 8, 2016 and related guidance from the Division of Banking.

Requirements for Licensure

Each money lender location must be separately licensed.

All licenses expire on December 31 of each year and a renewal application must be submitted through NMLS. The initial and annual renewal fees are set by Administrative Rules of South Dakota (ARSD) Chapter 20:07:20:01 and ARSD Chapter 20:07:20:02.

Foreign corporations applying for licensure should contact the Secretary of State's office at 605.773.3537 to determine if a Certificate of Authority is required to do business in South Dakota.

Money Lenders are subject to the South Dakota bank franchise tax. The bank franchise tax is a net income tax under SDCL Chapter 10-43. If you have questions about the bank franchise tax you may contact the Special Taxes office at 605.773.3311.

Any changes to application data, should be submitted via an amendment submitted through NMLS.

Exemptions

Entities that are exempt from SDCL Chapter 54-4 are:

Any state bank and its subsidiary;
Any national bank and its subsidiary;
Any bank holding company and its subsidiary;
Any other federally insured financial institution, its holding company and subsidiary; and
Any South Dakota charted trust company.
Any person selling goods or services and providing financing for such goods or services are exempt from the licensing requirements of SDCL Chapter 54-4.
The State of South Dakota, any political subdivision of the state, and any quasi-governmental organization created by South Dakota law or an executive order of the State of South Dakota and any subsidiary of such organization is exempt from the requirements of this chapter.

Partial Exemptions

Any nonprofit corporation formed pursuant to the provisions of SDCL Chapter 47-22; any nonprofit United States Treasury Community Development Financial Institution, Small Business Administration Certified Development Company, or Regional Revolving Loan Fund; or any commercial club, chamber of commerce, or industrial development corporation formed pursuant to the provisions of SDCL 9-12-11 or SDCL 9-27-37 is subject to the licensure requirements of SDCL Chapter 54-4 but is exempt from initial license fees, renewal fees, and surety bond requirements.

Forms

The following forms are available in Adobe PDF format unless otherwise indicated.

Exempt Lender Annual Reporting Form

Non-Profit Money Lender Registration Application Form

Non-Profit Money Lender Renewal Registration Application (Renewal period begins Nov. 1–Dec. 31.)

Ongoing Reporting Requirements

Annual Financial Condition Reporting:

All South Dakota money lenders are required to complete and submit the Annual Financial Condition Report by March 1 of each year. South Dakota money lenders are also required to upload an annual financial statement using the NMLS by March 31 each year. South Dakota money lenders are not able to request license renewal if their annual financial statements are not uploaded by November 1 each year.

Quarterly Reporting of Money Lending Activity:

The Division will send quarterly requests for all licensees to report their money lending activity in South Dakota by submitting the “Money Lender License Quarterly Questions”. After responses to the quarterly requests are received, the Division may send supplemental requests for account level data using the Uniform Loan Transaction Request (ULTR). ULTR is a standard information request used for quarterly reviews and examination planning.

Uniform Loan Transaction Request (Microsoft Excel) The uniform loan transaction request is a standard set of field names and definitions for consumer finance examiners to use when collecting loan lists from consumer finance companies. The standard is limited to field names and definitions.

Money Lender Quarterly Report Schedule:

Report is due within 14 days after the quarter end. The ULTR, if required, is due 45 days after quarter end.

Money Lender Quarterly Report Schedule

Money Lender Quarterly Report Schedule

	Notification Date	Money Lender Quarterly Report Due	ULTR Due (if required)
Q1 Data (Jan. 1 – March 31)	April 7	April 14	May 14
Q2 Data (April 1 – June 30)	July 7	July 14	Aug. 14
Q3 Data (July 1 – Sept. 30)	Oct. 7	Oct. 14	Nov. 14
Q4 Data (Oct. 1 – Dec. 31)	Jan. 7	Jan. 14	Feb. 14

Laws and Rules

SDCL Chapter 54-4

ARSD Chapter 20:07:20

U.S. Department of Defense Rule on Military Lending (in Adobe .pdf format)

Consumer Finance Protection Bureau

Federal Trade Commission (FTC) on Standards for Safeguarding Customer Information - 16 CFR 314

Marcia Hultman

Cabinet Secretary