South Dakota Codified Laws 36-21D-12. Surety bond or irrevocable letter of credit to be filed with application for registration or renewal–Conditions
An applicant for issuance or renewal of an appraisal management company registration shall file with the Department of Labor and Regulation a surety bond with one or more corporate sureties authorized to do business in this state or an irrevocable letter of credit issued by an insured institution authorized to do business in South Dakota in the amount of twenty-five thousand dollars. The surety bond or irrevocable letter of credit shall be conditioned upon the following:
(1) That the appraisal management company pay all amounts owed to a person who performs a real estate appraisal service for the company and pay all amounts adjudged against the company by reason of a negligent or improper real estate appraisal, a negligent or improper appraisal management service, or a breach of contract in performing a real estate appraisal or appraisal management service; and
Terms Used In South Dakota Codified Laws 36-21D-12
- Appraisal: A determination of property value.
- Contract: A legal written agreement that becomes binding when signed.
- Person: includes natural persons, partnerships, associations, cooperative corporations, limited liability companies, and corporations. See South Dakota Codified Laws 2-14-2
- written: include typewriting and typewritten, printing and printed, except in the case of signatures, and where the words are used by way of contrast to typewriting and printing. See South Dakota Codified Laws 2-14-2
(2) That the surety company or insured institution provides written notice to the department, by registered or certified mail, at least thirty days before the surety company or insured institution cancels or revokes a surety bond or irrevocable letter of credit or if the surety company or insured institution pays for a loss under the surety bond or irrevocable letter of credit.
Source: SL 2014, ch 184, § 1.