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South Dakota Interest Rate Laws

South Dakota (“SD”) interest rate laws are stated in SD Codified Laws, Title 54 (Debtors and Creditors), Chapter 54-3 (Interest and Usury).  Under Section 54-3-4, the state legal maximum interest rate is 12 percent per annum in the absence of a written agreement fixing a different rate.  Apart from the 12 percent legal maximum interest rate, Section 54-3-16 has listed various official state interest rates.  Under Section 54-3-5.1, interest rate on a money judgment is ten percent per year.

Real estate mortgages, Uniform Credit Code security agreements, revolving charge accounts under Section 54-11-5, and regulated lenders under Section 54-3-13 are exempted from the state prescribed interest rate.

S.D. Codified Laws § 54-3-16 reads:

§ 54-3-16.    
   The official state interest rates, as referenced throughout the South Dakota Codified Laws, are as follows:
   (1) Category A rate of interest is four and one-half percent per year;
   (2) Category B rate of interest is ten percent per year;
   (3) Category C rate of interest is twelve percent per year;
   (4) Category D rate of interest is one percent per month or fraction thereof;
   (5) Category E rate of interest is four percent per year;
   (6) Category F rate of interest is fifteen percent per year; and
   (7) Category G rate of interest is five-sixth percent per month or fraction thereof.

S.D. Codified Laws § 54-3-5.1 reads:
§ 54-3-5.1.    
   Interest is payable on all judgments and statutory liens, exclusive of real estate mortgages and security agreements under Title 57A, and exclusive of support debts or judgments under § 25-7A-14, at the Category B rate of interest as established in § 54-3-16 from and after the date of judgment and date of filing statutory lien. On all judgments arising from inverse condemnation actions, interest is payable at the Category A rate of interest as established by § 54-3-16.

S.D. Codified Laws § 54-3-13 reads:
§ 54-3-13.    
   Regulated lenders are exempt from all limitations on the rate of interest which they may charge and are further exempt from the operation and effect of all usury statutes, except as is otherwise provided in § 54-3-14. Regulated lenders and their assignees are further exempt from the prohibition, operation, and effect of § 15-17-39, and regulated lenders and their assignees may recover reasonable attorney’s fees in the case of default of payment if provided for in the note, bond, mortgage, or other evidence of debt.

Inside South Dakota Interest Rate Laws