S.D. Codified Laws § 47-16-53
Application of proceeds to prior losses
All or any part of the net proceeds of a cooperative may be applied to losses incurred in prior years, and the bylaws may also include any reasonable provisions for the apportionment of losses.
Source: SDC 1939, § 11.1131 (6) as enacted by SL 1965, ch 23, § 1.