S.D. Admin. R. 20:10:12:15 - Financial criteria for licensing

At a minimum, for a class A license the applicant's balance sheet must show a positive net worth of $100,000. At a minimum, for a class B license the applicant's balance sheet must show a positive net worth. In determining net worth for a class A or class B applicant, the commission may disallow the following assets if the assets are withdrawals of equity or are uncollectible:

(1) Accounts and notes receivable from or advances to stockholders, owners, partners, employees, or affiliates;

(2) Accounts receivable over 180 days old;

(3) Investments or equities in cooperatives; or

(4) Goodwill.

At a minimum, the balance sheet for a class A or class B applicant must show current assets greater than current liabilities. In determining working capital, the commission may disallow the following assets if the assets are withdrawals of equity or are uncollectible:

(1) Accounts and notes receivable from or advances to stockholders, owners, partners, employees, or affiliates;

(2) Accounts receivable over 180 days old;

(3) Investments or equities in cooperatives; or

(4) Goodwill.

Notes

S.D. Admin. R. 20:10:12:15

24 SDR 190, effective July 15, 1998; 40 SDR 39, effective September 9, 2013.

General Authority: SDCL 49-45-6(5).

Law Implemented: SDCL 49-45-7.