37-25A-1. Definitions. Terms used in this chapter, unless the context otherwise requires, mean: (1)”Advertising,” any circular, prospectus, advertisement, or other material or any communication by radio, television, pictures, or similar means used in connection with an offer or sale of any business opportunity; (2)”Business opportunity,” a contract or agreement, between a seller and purchaser, express […]
37-25A-10. Fee for registration. A registration fee of one hundred dollars shall accompany the application for registration. Source: SL 1985, ch 305, §10.
37-25A-11. Effective date of registration. A registration is automatically effective upon the expiration of the tenth full business day after a complete filing if no order is issued or proceeding is pending under §37-25A-18. The director of the Division of Insurance may by order waive or reduce the time period prior to effectiveness if a […]
37-25A-12. Term of registration–Renewal statement and fee–Sales report. The registration is effective for one year commencing on the date of effectiveness and may be renewed annually upon the filing of a current disclosure document accompanied by any document or information that the director of the Division of Insurance required. The registration renewal statement shall be […]
37-25A-13. Rule requiring filing of advertising and literature authorized. The director of the Division of Insurance may by rule or order require the filing of all proposed literature or advertising prior to its use. Source: SL 1985, ch 305, §13; SL 2017, ch 231 (Ex. Ord. 17-2), §19, eff. Apr. 13, 2017.
37-25A-14. Delivery of written disclosure document to purchaser required. No person may offer or sell any business opportunity required to be registered under this chapter unless a written disclosure document as filed under §37-25A-8 is delivered to each purchaser at least ten business days prior to the execution by a purchaser of any contract or […]
37-25A-15. Form and content of disclosure statement. The disclosure document shall have a cover sheet entitled, in at least ten-point bold type, “DISCLOSURE REQUIRED BY SOUTH DAKOTA.” Under the title shall appear the statement in at least ten-point type that “THE REGISTRATION OF THIS BUSINESS OPPORTUNITY DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY SOUTH […]
37-25A-16. Business opportunity contract to be written–Copy to purchaser. No person may offer or sell any business opportunity required to be registered unless the business opportunity contract or agreement is in writing and a copy of the contract or agreement is given to the purchaser at the time the purchaser signs the contract or agreement. […]
37-25A-17. Required contract provisions. Any contract or agreement shall set forth in at least ten-point type or equivalent size, if handwritten, the following: (1)The terms and condition of any payments due to the seller; (2)The seller’s principal business address and the name and address of the seller’s agent in this state authorized to receive service […]
37-25A-18. Denial, revocation, or suspension of registration–Grounds. The director of the Division of Insurance may issue an order denying, suspending or revoking the effectiveness of any registration if the director finds that the order is in the public interest and that: (1)The registration as of its effective date or as of any earlier date in […]
37-25A-19. Limitation of revocation, suspension, or denial proceeding. The director of the Division of Insurance may not institute a proceeding under §37-25A-18 against an effective registration on the basis of a fact or transaction known to the director when the registration became effective unless the proceeding is instituted within the next thirty days. Source: SL […]
37-25A-2. Exclusions from definition of business opportunity. For the purposes of this chapter, the term, business opportunity, does not include: (1)Any offer or sale of an on-going business operated by the seller and sold in its entirety; (2)Any offer or sale of a business opportunity to an on-going business if the seller provides products, equipment, […]
37-25A-20. Summary suspension or postponement of effectiveness of registration–Notice–Hearing–Modification. The director of the Division of Insurance may by order summarily postpone or suspend the effectiveness of the registration pending final determination of any proceeding under this chapter. Upon the entry of the order, the director shall promptly notify the seller that the order has been […]
37-25A-21. Prerequisites to entry of stop order. No stop order may be entered under any part of this chapter, except under §37-25A-20, without appropriate prior notice to the seller, opportunity for hearing, and written findings of fact and conclusions of law. Source: SL 1985, ch 305, §21.
37-25A-22. Vacation or modification of orders–Grounds. The director of the Division of Insurance may vacate or modify an order issued under this chapter if the director finds that the conditions which prompted its entry have changed or that it is otherwise in the public interest to do so. Source: SL 1985, ch 305, §22; SL […]
37-25A-23. Net worth or bond requirements for use of income, refund, or repurchase representations. In connection with the offer or sale of a business opportunity, no seller may make or use any of the representations set forth in subsections 37-25A-1(2)(d) and (2)(e) unless the seller has at all times a minimum net worth of twenty-five […]
37-25A-24. Period bond required–Notice required prior to lapse. If the seller is required to obtain a surety bond, the seller shall maintain a surety bond for the duration of the guarantee or representation giving rise to the surety bond requirement. Upon expiration of the period of the guarantee, the seller may allow the surety bond […]
37-25A-25. Use or disclosure of information by director restricted. The director of the Division of Insurance may not use for personal benefit any information which is filed with or obtained by the director and which is not made public. The director may not disclose any information except if necessary or appropriate in a proceeding or […]
37-25A-26. Investigatory powers of director–Publication of information concerning violations. The director of the Division of Insurance may: (1)Make public or private investigations within or outside of this state to determine if any person has violated or is about to violate any provision of this chapter or any rule or order hereunder, or to aid in […]
37-25A-27. Administration of oaths–Subpoena power–Taking evidence. For the purpose of any investigation or proceeding under this chapter, the director of the Division of Insurance or any officer designated by the director may administer oaths and affirmations, subpoena witnesses, compel the attendance of witnesses, take evidence and require the production of any books, papers, correspondence, memoranda, […]
