20 : 06 : 31 : 20 . Letter of credit issued by a financial institution. If the letter of credit is issued by a financial institution authorized to issue letters of credit, other than a qualified United States financial institution as described SDCL 58-14-16.18 , then the following additional requirements shall be met:

1. (1) The issuing financial institution shall formally designate the confirming qualified United States financial institution as its agent for the receipt and payment of the drafts; and
2. (2) The evergreen clause shall provide for thirty days' notice prior to expiration date for nonrenewal.

Source: 44 SDR 71, effective October 23, 2017.

General Authority: SDCL 58-14-17.

Law Implemented: SDCL 58-14-16, 58-14-17 .