Secretary of State Certifies Loan Interest Rate Amendment

PIERRE, S.D. (AP) — A constitutional amendment that would cap money lenders' interest rates in South Dakota unless a borrower agreed to a higher rate is on its way to the 2016 ballot.

Secretary of State Shantel Krebs said Monday that her office approved the measure. Krebs' certification can be challenged through Feb. 3.

The office looks at signatures and petition completeness as part of its review before the measures can appear on the ballot.

The amendment would cap interest rates at 18 percent annually unless the borrower agreed to a higher rate in writing. It also says no law capping interest is valid unless the borrower can agree to a different rate.

The measure's sponsor didn't immediately respond to a request for comment. The amendment requires a simple majority of votes to pass.

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