Updated June 07, 2023
A South Dakota secured promissory note gives structure and legality to a money-lending transaction between two parties. The lender of the monetary balance earns interest on top of being reimbursed the original amount from the borrower. The interest rate is also called the usury rate and has a maximum allowable percentage from the state of South Dakota. To ensure use of a legal rate, check §54-3-16 and §54-3-4.