ENTITLED, An Act to authorize counties to borrow money using promissory notes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 7-21 be amended by adding thereto a NEW SECTION to read as follows:
The provisions of § 7-21-16 or any other provision of law notwithstanding, a county may borrow
money from any source willing to lend the money by issuing a promissory note subject to the
limitations set in sections 2 to 5, inclusive, of this Act. Notes issued pursuant to this section are
payable solely from the sources provided in section 2 of this Act and do not constitute an
indebtedness of the county within the meaning of any constitutional or statutory provisions or
limitations. The notes shall specify the authority under which the notes are issued and shall state that
the notes are issued in conformity with the provisions, restrictions, and limitations of sections 2 to
5, inclusive, of this Act and that the notes and the interest on the notes are payable from the sources
specified in sections 2 to 5, inclusive, of this Act. The notes shall be authorized, issued, and sold in
accordance with chapter 6-8B. No election is required, and the notes may not be issued for a term
in excess of five years.
Section 2. That chapter 7-21 be amended by adding thereto a NEW SECTION to read as follows:
The money borrowed pursuant to section 1 of this Act may not exceed the sum of ninety-five
percent of the amount of uncollected taxes levied by the county for the current fiscal year plus other
receivables of the fund, including state or federal grant moneys, that have been earned by the county
or committed by the state or federal governments but not collected at the date of borrowing.
Section 3. That chapter 7-21 be amended by adding thereto a NEW SECTION to read as follows:
If any registered warrants or promissory notes are outstanding against the fund for which the
money is to be borrowed, the borrowing limit specified in section 2 of this Act is reduced by the
amount of the outstanding warrants or promissory notes.
Section 4. That chapter 7-21 be amended by adding thereto a NEW SECTION to read as follows:
The rate of interest for a promissory note authorized by section 1 of this Act shall be stated on
the note. The note shall be signed by the chair of the board of county commissioners and by the
Section 5. That chapter 7-21 be amended by adding thereto a NEW SECTION to read as follows:
If a note authorized by sections 1 to 4, inclusive, of this Act has been issued and not paid in full
within the term provided in section 1 of this Act, no cash receipts may be expended for any purpose
except the retirement of principal and interest of notes outstanding against that fund, until all such
notes are retired.
An Act to authorize counties to borrow money using promissory notes.
I certify that the attached Act
originated in the
SENATE as Bill No. 101
Secretary of the Senate
President of the Senate
Secretary of the Senate
Speaker of the House
Senate Bill No. 101
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
STATE OF SOUTH DAKOTA,
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
Secretary of State
Asst. Secretary of State