If the system is terminated, or if contributions to the system are discontinued, the rights of all members to benefits that have accrued as of the date of termination or discontinuation of contributions shall vest. A member’s recourse against the fund shall be limited by the extent to which the member’s benefits are funded.

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Terms Used In South Dakota Codified Laws 3-12C-221

  • Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC

Source: SL 1984, ch 23, § 4; SDCL § 3-12-72.2; SL 2019, ch 22, §§ 13, 45.