The borrower shall provide written notice to the board with ten business days of any:

1. (1) Change in top level management of the borrower's business;
2. (2) Change in ownership of ten percent or more of the business's stock, membership interests, or ownership interests; or

3. (3) Plans for sale, public offering, or lease of the business.

   The sale, public offering, or lease of the business requires prior written approval of the board. If the notification and prior approval requirements of this section are not satisfied, the board may call the loan immediately due and payable.

Source: 34 SDR 68, effective September 13, 2007 ; 52 SDR 49, effective November 17, 2025 .

General Authority: SDCL 1-16G-5 , 1-16G-8 (5).

Law Implemented: SDCL 1-16G-5 .

Prior versions effective: 2007-09-13.