Certain corporations not in the business of making loans

64:26:02:11. Certain corporations not in the business of making loans. A corporation which makes loans to other members of the controlled group and not to unrelated third parties is not considered to be in the business of making installment repayment and open-end loans as described in SDCL chapter 10-43. For purposes of this rule, the term "controlled group" includes any group as defined by SDCL 10-45-20.3 or any group consisting of the corporation and a subsidiary in which the corporation has a 50 percent or greater ownership interest.
This section applies only if the primary business of the controlled group is the production and sale of tangible personal property and the loans are made for the purpose of fiscal control and performance measurement in lieu of capital contributions and not for commercial lending purposes.