South Dakota Administrative Rules
Title 12 - Department of Agriculture
Article 12:07 - Agriculture enterprise programs
Chapter 12:07:14 - Value adding livestock underwriting
Section 12:07:14:19 - Reserve fund
The department shall establish a pooled reserve fund for guarantee programs administered by the department. Ten percent of each VALU Guaranty made will be deposited into the pooled reserve fund. Interest income shall be maintained in the pooled fund. At a minimum, an amount equal to this deposit (combined with the deposits required by each guarantee program administered by the department) shall be maintained in the reserve fund at all times. If the total maintained in this pooled reserve fund exceeds the minimum required and such additional amounts would not be required for payment on pending defaults, funds may be transferred to other funds or accounts. The VALU Guaranty constitutes a limited obligation of the South Dakota Department of Agriculture, and is payable only from the pooled reserve fund and is not payable out of other revenues or property of the department or any other funds of the State of South Dakota.
General Authority: SDCL 38-6-8.1.
Law Implemented: SDCL 38-6-3, 38-6-8.