51A-17-104. Expiration of letter of credit--Funds held in trust by director.In the event of any notice of expiration or non-extension of a letter of credit issued under subdivision 51A-17-102(4), the licensee shall be required to demonstrate to the satisfaction of the director, fifteen days prior to expiration, that the licensee maintains and will maintain permissible investments in accordance with subdivision 51A-17-101(1) upon the expiration of the letter of credit. If the licensee is not able to do so, the director may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments in accordance with subdivision 51A-17-101(1). Any such draw shall be offset against the licensee's outstanding money transmission obligations. The drawn funds shall be held in trust by the director or the director’s designated agent, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations. Source: SL 2024, ch 196, §53.
South Dakota Legal Code