MARTY J. JACKLEYATTORNEYGENERALSTATE OFSOUTH DAKOTAOFFICEOF
ATTORNEY GENERAL13O2East Highway14, Suite1Pierre,
SouthDakota57501-85O1Phone 16051773-3215Fax1605)773-41OGTTY (605)
773-6585http://atg.sd.gov/RECEIVEDAU6 t0
ailsS.D.SEC.OFSTATECHARLESD.McGUIGANCHIEF DEPUTYATTORNEYGENERALRe:
Attorney General'sstatement-Amendment limitingthe abilityto
setstatutory interestratesfor loansDearSecretary Krebs,This
officereceived an initiated constitutionai amendmentlimiting the
abilitytoset statutory interestrates for loans. The sponsoris
LisaFurlong. Enclosedis acopyof theconstitutional amendment, in
final form, that was su6mitted to thisoffice.In accordancewith
SDCL12-13-2s.l,l hereby submittheAttorneyGeneral's Statementwith
respectto thisamendment.By copyof this letter,I am providing a
copyof theAttorneyGeneral'sstatementto thesponsorpursuant to SDCL
12-13-25.1.HAND DELIVEREDAugust 10,2015Hon. Shantel KrebsSecretary
of State500 E. CapitolPicrre,SD 5750IMarty J. JackleyAT'IORNEY
GENERALMJ.l/PA/ldeEnc.cc w/ enc.: Lisa
FurlongJasonHancock,&nLK^,/rJDirector of
LRCSECSENRY(rSTAIECONSTITUTIONALAMENDMENTATTORNEYGENERAL'SSTATEMENTRECEIVEDAUG
r O eOUS.D.SEC. OFSIAIETitle: An initiated amendmentto the
SouthDakotaConstitutionlimiting theability to set
statutoryinterestrates for loansExplanation:Under this
constitutionalamendment,there is no limit on the amount ofinterest
a lender maychargefor a loan of moneyif the interest rate is
agreedtoin writing by the borrower. If there is no
writtenagreement,however,alendermaynot chargemore
than18%ointerestper year. A law settingan interest ratefor loans is
not valid unlessthe law gives the lender and borrowerthe
abilitytoagreeto a different rate. If an interestrate for loans is
establishedbv law. iimustapplyto everytypeof lender.The
amendmenteliminatesthe ability to setstatutoryinterest ratesthatare
inconsistent with thisamendment.g.fr,C,r
