For any series of bonds for which a loan reserve account is required, the borrower must deposit in the loan reserve account, as of the date of calculation, one of the following amounts, as applicable:

1. (1) If the series of bonds is issued on a tax-exempt basis, an amount equal to ten percent of the original principal amount of the series of bonds or the lesser amount required under 26 U.S.C. § 148(d)(1) (December 31, 2024), to preserve the tax-exempt status of interest on the series of bonds;
2. (2) If the series of bonds is issued on a taxable basis, the maximum debt service, assuming no acceleration of maturity, for the bond year; or
3. (3) An amount as determined by the authority.

Source: 13 SDR 134, effective March 31, 1987; 21 SDR 14, effective August 3, 1994 ; 52 SDR 49, effective November 17, 2025 .

General Authority: SDCL 1-16B-70 .

Law Implemented: SDCL 1-16B-14 (7), 1-16B-15 , 1-16B-18 .

Prior versions effective: 1994-08-03.