The Authority
The Authority is a body politic and corporate and public
instrumentality of the State of South Dakota created in 1972
by Chapter 1-16A of the South Dakota Codified Laws “SDCL”
(the Act). The purpose of the Authority is to (i) assist
private nonprofit health and educational institutions in
South Dakota in the construction, acquisition, financing and
refinancing of projects to be undertaken for health care and
higher education programs, (ii) assist South Dakota school
districts and public bodies to alleviate cash flow shortages
and reduce short-term borrowing costs, (iii) finance capital
improvements for vocational education, (iv) assist public
bodies in the financing of real property, equipment or other
personal property and (v) assist public bodies, health
institutions and educational institutions in the investment
of funds intended for use or application in connection with
any purpose, project or program authorized by the Act.
Under the Act, the Authority is authorized and empowered,
among other things: to issue bonds, notes and other
obligations for any of its corporate purposes and to refund
the same; to charge and collect rates, rents, fees and
charges for the use of projects or for services furnished by
facilities in relation thereto; to construct, reconstruct,
renovate, replace, maintain, repair, operate, lease or
regulate projects for participating health institutions or
participating educational institutions and to enter into
contracts for the management or operation of projects; to
refinance indebtedness of participating health institutions
or participating educational institutions incurred with
respect to the construction or acquisition of facilities by
such institutions; to establish or cause to be established
rules and regulations for the use of projects; to receive in
relation to a project, loans or grants from any public
agency or other source; to make loans to participating
health institutions or participating educational
institutions for costs of projects; to mortgage any project
and the site thereof for the benefit of the holders of bonds
issued to finance such project; and to do all things
necessary or convenient to carry out the purpose of the Act.
The Act provides that the Authority shall consist of seven
members serving five-year terms who shall be appointed by
the Governor. All members of the Authority serve without
compensation but are entitled to reimbursement for actual or
necessary expenses incurred in the performance of their
duties under the Act. The Authority annually elects one
member to serve as Chairman, one member to serve as Vice
Chairman and one member to serve as Treasurer.
