South Dakota — Money Lender - NMLS Bond
South Dakota money lenders apply through NMLS and license each location separately. The bond statute sets a total ceiling of $10,000 for the first license plus $2,500 for each additional license; match the Division's required sum rather than treating that ceiling as a universal fixed purchase amount.
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- Recorded state
- South Dakota
- Bond type
- Consumer Finance / Lender Bond
- Category
- Financial services
What this bond does
File the director-accepted security for the actual Chapter 54-4 money-lending licenses, after checking whether a statutory exemption applies.
- Who needs it
- South Dakota money lenders, including covered retail-installment-contract purchasers and payday or title lenders, identifying their licensed locations and any applicable exemption.
- Who it protects
- Section 54-4-42 makes the bond payable for South Dakota and people with causes of action under Chapter 54-4 against the licensee. It secures faithful performance of that chapter and its rules and payment of amounts due to the State or another person during the calendar year covered.
Your bond option
This is the option on record for this bond.
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The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- South Dakota Division of Banking: Money Lenders (opens in a new tab)Checked October 27, 2026
- South Dakota Legislature: Section 54-4-42 (opens in a new tab)Checked October 27, 2026
Have these ready
- Confirm Chapter 54-4 money-lending activity and any full or partial exemption.
- List the first and additional location licenses and match the requested total to the statutory ceiling.
- Bring the exact company/NMLS record, director-accepted form, sum and dates.
- Confirm execution and bond filing separately from NMLS renewal and financial reports.
Questions about this bond
Does the statute set $10,000 as a minimum for every lender?
Its wording is an amount not exceeding $10,000 for the first license plus $2,500 for each additional license. Use the Division's actual request and applicable exemption, not a minimum inferred from that ceiling.
Does a nonprofit automatically need this bond?
The Division identifies specified nonprofit and community-development organizations that remain licensed but are exempt from the bond requirement. Confirm the business's exact category.
Can retail installment activity fall within this license?
Yes. The Division's program includes creating, holding, purchasing or acquiring retail installment contracts, subject to the applicable exemptions.
Does buying the bond renew all my locations?
No. Each required location license and the separate NMLS renewal remain necessary. Financial-condition and activity reports are also distinct from buying or filing security.