S.D. Admin. R. 20:18:20.01:02 - Check cashing procedures

The following procedures must be utilized by any licensee accepting checks:

(1) Each check accepted by a licensee at the cashier's cage must be deposited by the next banking day except where the licensee has a contractual agreement to use an Automatic Clearing House (ACH) for electronic funds transfer. An ACH transaction must be initiated within 24 hours of receipt of the check.

(2) A check for participation in limited gaming by a patron may only be accepted at the cage;

(3) Each check receipted or accepted into the cage must be considered received for participation in limited gaming, unless documented and accounted for separately as nongaming funds;

(4) Once receipted into or accepted at the cage, a check may only be repurchased by the maker of the check after the check has been dishonored by the maker's financial institution;

(5) A check may not be accepted under any conditions, terms, or agreements which render the check not payable on demand; and

(6) No licensee may accept a check issued for participation in limited gaming from any patron under the following circumstance:

When the maker (and endorser of a third-party check, if any) of the check has previously issued a check to the licensee for any purpose, and the licensee has actual notice, or 24 hours of constructive notice, from a financial institution or financial transaction agent that the previous check is dishonored, until such time as licensee's claim against the maker of the check, arising from the dishonored check, is satisfied in full, whether by accord and satisfaction, payment, or liquidation of judgment.

A violation of subdivision (4), (5), or (6) of this section constitutes a violation of SDCL 42-7B-45.

Notes

S.D. Admin. R. 20:18:20.01:02

16 SDR 57, effective 10/1/1989; 19 SDR 21, effective 8/20/1992; transferred from

General Authority: SDCL 42-7B-7, 42-7B-11(11)(13).

Law Implemented: SDCL 42-7B-7, 42-7B-11(11).

Extension of credit prohibited -- Violation as felony, SDCL 42-7B-45.