South Dakota Defines Written Agreement
Effective July 1, 2016 the legislature of South Dakota defined written agreements between debtors and creditors as documents in writing, whether in physical or electronic form. Furthermore, the written agreement must evidence a demonstration by the parties’ agreement to the terms, conditions of an extension of credit, and the rate of interest. Written agreements also include contracts created by section 54-11-9 (the section governs credit card holder agreements).
Though the definition of “written agreement” has been clarified the rest of the section remains unchanged. Namely, the maximum interest rate, charge, or usury rate is still allowed to be agreed upon by parties on a written agreement without any restrictions – unless specifically codified.
LEGISLATION EFFECTIVE JULY 1, 2016
For ease, the updated piece of legislation reads as follows:
54-3-1.1. Unless a maximum interest rate or charge is specifically established elsewhere in the code, there is no maximum interest rate or charge, or usury rate restriction between or among persons, corporations, limited liability companies, estates, fiduciaries, associations or any other entities if they establish the interest rate or charge by written agreement. A written agreement is a document in writing, whether in physical or electronic form, in which the parties have demonstrated their agreement to the terms and conditions of an extension of credit, including the rate of interest. A written agreement includes the contract created by section 54-11-9.
LEGISLATION CURRENTLY EFFECTIVE
View the legislation as it currently stands:http://legis.sd.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&Statute=54-3-1.1
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