20:10:12:15Financial criteria for licensing.

For a class A license, the applicant's balance sheet must show a positive net worth of at least $250,000. However, to offer voluntary credit sale contracts, a class A license applicant's balance sheet must show a positive net worth of at least $500,000. For a class B license, the applicant's balance sheet must show a net worth of at least $100,000. In determining net worth and working capital for a class A or class B applicant, the commission may disallow the following assets if the assets are withdrawals of equity or are uncollectible: (1) Accounts and notes receivable from or advances to stockholders, owners, partners, employees, or affiliates; (2) Accounts receivable over one hundred eighty days old; (3) Investments or equities in cooperatives; or (4) Goodwill. The balance sheet for a class A or class B applicant must show current assets greater than current liabilities.

Source: 24 SDR 190, effective July 15, 1998; 40 SDR 39, effective September 9, 2013; 50 SDR 125, effective May 6, 2024.