Loan requirements

12:21:01:09. Loan requirements. The authority may take security for a loan in the form of a promissory note, security agreement, mortgage, or similar agreement. A loan may not be assumed without the prior written consent of the authority. The authority may not consent to an assumption of its loan or the conveyance of property subject to its mortgage or security agreement unless the purchaser of the property financed by the loan is an eligible applicant for an authority loan and the program. Any change in collateral for the loan in conjunction with an assumption, including the disposition of the property subject to a mortgage or security agreement, must be approved by the authority. Source: 22 SDR 97, effective January 22, 1996; 29 SDR 135, effective April 13, 2003; 52 SDR 49, effective November 17, 2025. General Authority: SDCL 1-16B-70. Law Implemented: SDCL 1-16B-1(3), 1-16B-57.