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.