STATE OF SOUTH DAKOTA
OFFICE OF
THE ATTORNEY GENERAL

September 10, 1971

W. E. Wintrode
Superintendent of Banks
Pierre, South Dakota 57501

OFFICIAL OPINION NO. 71-36

Permissibility of a savings and loan association to do business under Chapter 54-7 "Motor Vehicle Retail Installment Sales Law."

Dear Mr. Wintrode:

You have asked my opinion as follows:

An application has been received by this office from a savings and loan association for a license to do business under Chapter 54-7 "Motor Vehicle Retail Installment Sales Law."

Is it permissible for this department to grant a license to a federal or state chartered savings and loan association to do business under Chapter 54-7 SDCL "Motor Vehicle Retail Installment Sales Law"?

It is my opinion that it would not be permissible. SDCL 52-1-2 states:

No person shall engage in or transact the business of a savings and loan association in South Dakota without first complying with the applicable provisions of this title.

I can find no provision in Chapter 52 SDCL authorizing a savings and loan association to engage in motor vehicle installment sales. It is further my opinion that a specific grant of authority would have to be enacted by the Legislature in order for a savings and loan association to engage in the practices contemplated by SDCL 54-7 "Motor Vehicle Retail Installment Sales Law."

Respectfully submitted,

Gordon Mydland
Attorney General