Who requires it
South Dakota Division of Banking — Money lenders
License & permit · South Dakota
South Dakota Money Lender Bond
South Dakota money lenders—including payday and title lenders licensed under chapter 54-4—must file a surety bond with the license application. SDCL 54-4-42 caps the amount at $10,000 for the first license and $2,500 for each additional license. That is a statutory maximum, not a figure we have verified as the amount Banking currently requires in every case. Confirm the exact amount with the Division of Banking for your location count before filing. The bond protects the state and people with claims under chapter 54-4. Some nonprofit and development entities must still be licensed but are exempt from the bond.
Common bond amount
≤ $10,000 + $2,500 per additional license
SDCL 54-4-42: not to exceed $10,000 for the first license and $2,500 for each additional license. Confirm the amount Banking currently requires. Each location is separately licensed.
How you file
File electronically through NMLS with the Division of Banking
Renewal
Keep the bond active while licensed. Licenses run through December 31 via NMLS.
Who requires it
Applicants for and holders of South Dakota money lender licenses under SDCL chapter 54-4 filing with the Division of Banking through NMLS, other than entities the statute exempts from bonding.
How much is required
SDCL 54-4-42 says the bond may not exceed $10,000 for the first license and $2,500 for each additional license. Confirm the amount the Division of Banking expects for your location count before you order coverage.
How to get and file it
Ask the Division of Banking what amount to file for your first license and any additional locations, then arrange a surety bond the director will accept and file proof with the NMLS money-lender application as Banking instructs. Licenses expire December 31 and renew through NMLS. Keep bond proof current for every licensed location. Nonprofit partial exemptions still require registration but not the bond.
Cost note
The amount Banking requires is the bond amount, not the premium you pay. The statute only sets a maximum. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- First license (statutory maximum)
- Bond not to exceed $10,000
- Each additional license / location (statutory maximum)
- Bond not to exceed $2,500
- Confirm before filing
- Ask the Division of Banking for the amount it currently requires
- Partial exemptions
- Listed nonprofits may be licensed without the bond
Official sources
Related resources
Frequently asked questions
Is $10,000 the amount I have to file?
South Dakota requires a money-lender bond, but SDCL 54-4-42 only caps the amount at $10,000 for the first license and $2,500 for each additional license. Confirm the amount the Division of Banking currently requires before you order coverage.
Does every branch need its own bond amount?
Each money-lender location must be separately licensed. The statute allows up to $2,500 more for each additional license beyond the first-license maximum of $10,000. Confirm the amount Banking requires for your location count.
Is this the same bond as the mortgage lender bond?
No. Money lenders bond under chapter 54-4. Mortgage lenders, brokerages, brokers, and originators bond under chapter 54-14 with a different volume schedule.
Related South Dakota bond guides
Mortgage Lender / Broker Bond
$25,000–$50,000
South Dakota mortgage lenders, brokerages, brokers, and originators must keep a surety bond under SDCL 54-14-24. That statute sets a $25,000 floor and requires an amount that reflects loan volume. ARSD 20:07:19:07 provides the current schedule: $25,000 when prior-year South Dakota originated, brokered, or serviced volume is under $25 million; $35,000 from $25 million through $100 million; and $50,000 above $100 million. An employed or exclusive-agent originator or broker may be covered by the employer’s bond. Keep the bond active while licensed. The surety may cancel on 30 days’ notice to you and the director. If a claim is paid, file a replacement right away.
Money Transmitter Bond
$100,000–$500,000
Every South Dakota money transmitter must keep security on file with the Division of Banking. SDCL 51A-17-100 sets the amount as the greater of $100,000 or 100% of average daily South Dakota transmission liability for the latest three-month window, capped at $500,000. Firms whose tangible net worth is more than 10% of total assets post a flat $100,000 instead. With the director’s approval, a deposit can replace the bond. File through NMLS and keep the security active for the license year ending December 31. If you already post $500,000, you do not have to keep recalculating average daily liability.
Motor Vehicle Dealer Bond
$5,000–$25,000
South Dakota vehicle and specialty dealers file a surety bond with the Department of Revenue Motor Vehicle Division before the matching dealer license issues. Amounts are $25,000 for vehicle, used-vehicle, or manufactured/mobile-home licenses; $20,000 for boat; $10,000 for emergency-vehicle or for trailers over 3,000 pounds; and $5,000 for motorcycle/off-road or snowmobile. Boat dealers may use one bond for several dealer licenses if the amount covers every license. The bond protects customers if the dealer fails on title, commits fraud, or breaks a lien warranty. Keep a current bond for each license period. If a claim is paid after a judgment, bring the bond back to the required amount. The surety must notify the department in writing of paid claims or cancellations.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a South Dakota application
South Dakota will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-12. This guide is based on verified educational content and official sources.
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