ARSD 20:69:12:16. Responsible managing employee -- Designation, duties, and change

The commission may not accept the filing of a corporate time-share agent or corporate plan manager unless the corporation has designated a responsible managing employee and prescribed the RME's duties, responsibilities, and obligations. The corporate RME is responsible for the direct management of the corporation's time-share operations. The commission does not consider the corporate RME to have the direct management of the corporation's time-share operation unless the RME meets the following requirements: (1) Is a bona fide employee of the corporation and has direct control, supervision, and management of the corporation's time-share operations; (2) Has full knowledge and control of the corporation's accounting practices; (3) Has full knowledge and control over the moneys belonging to and in the custody of the corporation in connection with the time-share operation; and (4) Has full access to all books, records, and documents materially related to the corporation's part in the time-share operation whether they are kept in the state or out-of-state. The name, address, and telephone number of the RME must be filed with the commission. If there is a change in RME, the name of the new RME must be reported to the commission in writing within ten days after the change. A plan manager may manage one or more time-share plans. A plan manager may have one or more RMEs. If a developer or plan manager of two or more time-share plans, at least one of which includes time-share units located in this state, maintains its principal office or has primary management and accounting functions out-of-state, the duties of the RME specified in this section may be divided between two or more RMEs provided that at least one RME is located in the state.