S.D. Admin. R. 20:06:31:18
The letter of credit must be clean, irrevocable, unconditional and issued or confirmed by a qualified United States financial institution as defined in SDCL 58-14-16.18. The letter of credit shall contain an issue date and expiration date and shall stipulate that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds and that no other document need be presented. The letter of credit also shall indicate that it is not subject to any condition or qualifications outside of the letter of credit. The letter of credit may not contain reference to any other agreements, documents or entities, except as provided in § 20:06:31:21.
The letter of credit shall contain a statement to the effect that the obligation of the qualified United States financial institution under the letter of credit is in no way contingent upon reimbursement with respect thereto.
As used in this section, beneficiary, means the domestic insurer for whose benefit the letter of credit has been established and any successor of the beneficiary by operation of law. If a court of law appoints a successor in interest to the named beneficiary, then the named beneficiary includes and is limited to the court appointed domiciliary receiver, including conservator, rehabilitator or liquidator.
S.D. Admin. R. 20:06:31:18
General Authority: SDCL 58-14-17.
Law Implemented: SDCL 58-14-16, 58-14-17.