In South Dakota, if your business involves lending money, including retail installment contracts, you’re classified as a Money Lender. This designation, governed by South Dakota Codified Law (SDCL) 54-4, necessitates obtaining a Money Lender License to operate legally. This requirement extends to payday and title lenders, ensuring consumer protection and regulatory oversight within the lending industry.
To streamline the application process, South Dakota utilizes the Nationwide Multistate Licensing System & Registry (NMLS). This online platform serves as the central hub for submitting your Money Lender License Application. NMLS offers a standardized and efficient way to manage licenses across multiple states, simplifying the process for businesses operating in various jurisdictions.
Navigating the NMLS system for your Money Lender Application is made easier with the comprehensive resources available on the NMLS website. You’ll find step-by-step instructions guiding you through system access, detailed guides for completing the required MU forms, specific state transition plans and requirements, helpful tutorials, and lists of participating states. The website also provides critical information regarding system alerts, processing fees, and general background details essential for a smooth application process.
Understanding Industrial Hemp Guidance for Money Lenders
For businesses involved in lending related to the burgeoning industrial hemp industry, the South Dakota Division of Banking issued specific guidance on February 9, 2021. This guidance document clarifies regulatory aspects relevant to money lending within this sector. You can access this information directly through the Industrial Hemp Guidance document.
Guidance on Initiated Measure 21
In 2016, South Dakota voters approved Initiated Measure 21 (IM 21), which significantly impacted payday lending practices. The Division of Banking provided initial guidance on November 14, 2016, to help money lenders understand and comply with the new regulations introduced by IM 21. To understand the original interpretation and requirements related to this measure, you can read the original guidance . . ..
A summary of Initiated Measure 21 (IM 21) and further guidance from the Division of Banking is available at summary of Initiated Measure 21 (IM 21). This resource provides crucial context and details regarding the regulations affecting short-term lending in South Dakota.
For further information to assist with your money lender application and ongoing compliance, explore these resources:
Essential Forms for Your Money Lender Application and Operations
The Division of Banking provides necessary forms in Adobe PDF format to facilitate your money lender application and ongoing reporting. These forms are crucial for both initial registration and maintaining compliance.
For non-profit organizations seeking to operate as money lenders, specific registration forms are available:
*[Non-Profit Money Lender Registration Application Form](https://sdeforms.na2.documents.adobe.com/public/esignWidget?wid=CBFCIBAA3AAABLblqZhBoHmr-Dd3NVgxCJ_VjU-__0cnCf7KJn4BaLHuoOqFm3Ip77BT3j4BsRvxLOVeQUCI)**
*[Non-Profit Money Lender Renewal Registration Application](https://sdeforms.na2.documents.adobe.com/public/esignWidget?wid=CBFCIBAA3AAABLblqZhC-LZ24NjxfIoH_Pd-WND_yW_3aU6F1nnyxZDLwsxarYsbiNdPS8rs8Hkdrl43wnfA)** (Renewal period: November 1 – December 31)
Licensees are also required to submit quarterly reports detailing their money lending activities in South Dakota. The Division of Banking will initiate these requests and may also require supplemental data using the Uniform Loan Transaction Request (ULTR).
Uniform Loan Transaction Request (Microsoft Excel)
The ULTR standardizes data collection for consumer finance examiners, ensuring consistency in reporting loan information.
Money Lender Quarterly Report Schedule: Reports are due within 14 days after the quarter ends, while the ULTR, if requested, is due 45 days after the quarter ends. Refer to the schedule below for specific deadlines:
Money Lender Quarterly Report Schedule
| Notification Date | Money Lender Quarterly Report Due | ULTR Due (if required) | |
|---|---|---|---|
| Q1 Data (Jan. 1 – March 31) | April 7 | April 14 | May 14 |
| Q2 Data (April 1 – June 30) | July 7 | July 14 | Aug. 14 |
| Q3 Data (July 1 – Sept. 30) | Oct. 7 | Oct. 14 | Nov. 14 |
| Q4 Data (Oct. 1 – Dec. 31) | Jan. 7 | Jan. 14 | Feb. 14 |
*Important Note*: Any changes to your money lender application** information, such as address, contact person, or ownership, must be reported to the Division of Banking through an application amendment.
Key Laws and Rules Governing Money Lenders
Staying informed about the relevant laws and rules is critical for compliance and successful operation as a money lender in South Dakota. These resources provide the legal framework for your business:
South Dakota Codified Law (SDCL) 54-4 on Money Lending Licenses
Administrative Rules of South Dakota (ARSD) Chapter 20:07:20 on Money Lending Licensees
U.S. Department of Defense Rule on Military Lending (Adobe .pdf format)
Consumer Finance Protection Bureau
By utilizing this guide and the provided resources, you can navigate the money lender application process in South Dakota effectively and ensure your business operates in full compliance with state regulations.
