S.D. Codified Laws § 51A-1-9 — SD Code / Title 51A / Chapter 1 / Section 51A-1-9
Concealment of bank transactions as misdemeanor
Status: in_force

It is a Class 1 misdemeanor for an officer, director, employee or agent of a bank to conceal or endeavor to conceal any transaction of the bank from any officer, director or employee of the bank or any official or employee of the division to whom it should properly be disclosed.

Source: SL 1969, ch 11, § 1.8; SL 1970, ch 265, § 2; SL 1980, ch 24, § 81; SL 1988, ch 377, § 7; SDCL, § 51-15-8.
S.D. Codified Laws § 51A-15-32 — SD Code / Title 51A / Chapter 15 / Section 51A-15-32
Fiduciary positions of bank terminated after commencement of liquidation
Status: in_force

As soon after the commencement of involuntary liquidation as is practicable, the director or receiver shall take the necessary steps to terminate all fiduciary positions held by a bank and take such action as may be necessary to surrender all property held by such bank as a fiduciary and to settle its fiduciary accounts.

Source: SL 1969, ch 11, § 13.15; SL 1970, ch 265, § 70; SL 1988, ch 377, § 175; SDCL, § 51-27-24.
S.D. Codified Laws § 51A-6A-50 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-50
Procedure for merger, consolidation, conversion, or transfer of assets and liabilities to another bank or trust company
Status: in_force

Before any trust company can merge, consolidate with, convert from a corporation to a limited liability company or from a limited liability company to a corporation under § 47-1A-950 or 47-1A-950.1 , or transfer its assets and liabilities to another trust company or bank, it shall file with the director, certified copies of all proceedings of its governing board and owners relating to the merger, consolidation, conversion, or transfer. The owners' proceedings shall show that a majority of the owners voted in favor of the merger, consolidation, conversion, or transfer. The owners' proceedings shall contain a complete copy of the agreement made and entered into, with reference to the merger, consolidation, conversion, or transfer. Upon the filing of the owners' and governing board's proceedings, the director shall make an investigation to determine whether:

(1) The interests of the clients, creditors, and owners of each are protected;

(2) The merger, consolidation, conversion, or transfer is in the public interest; and

(3) The merger, consolidation, conversion, or transfer is made for legitimate purposes.

The director's consent to or rejection of a merger, consolidation, conversion, or transfer shall be based upon the investigation. No merger, consolidation, conversion, or transfer may be made without the consent of the director. The expense of the investigation shall be paid by the persons filing the request.

Source: SL 1995, ch 268, § 48; SL 2012, ch 252, § 20.
S.D. Codified Laws § 51A-17-55 — SD Code / Title 51A / Chapter 17 / Section 51A-17-55
Confidentiality--Disclosure of information
Status: in_force

(1) Except as otherwise provided in this section, all information or reports obtained by the director from an applicant, licensee, or authorized delegate and all information contained in or related to an examination, investigation, operating report, or condition report prepared by, on behalf of, or for the use of the director, or financial statements, balance sheets, or authorized delegate information are confidential and are not subject to disclosure under this state's open records law.

(2) The director may disclose information not otherwise subject to disclosure under this section to representatives of state or federal agencies who promise in a record that they will maintain the confidentiality of the information or where the director finds that the release is reasonably necessary for the protection and interest of the public in accordance with this state’s open records law.

(3) This section does not prohibit the director from disclosing to the public a list of all licensees or the aggregated financial or transactional data concerning those licensees.

(4) Information contained in the records of the division that is not confidential and may be made available to the public either on the division website, upon receipt by the division of a written request, or in NMLS must include:

(a) The name, business address, telephone number, and unique identifier of a licensee;

(b) The business address of a licensee's registered agent for service;

(c) The name, business address, and telephone number of all authorized delegates;

(d) The terms of or a copy of any bond filed by a licensee, provided that confidential information, including, but not limited to, prices and fees for the bond is redacted; and

(e) Copies of any non-confidential final orders of the division relating to any violation of this chapter or regulations implementing this chapter; and

(f) Imposition of a non-confidential administrative fine or penalty under this chapter.

Source: SL 2024, ch 196, § 4.
S.D. Codified Laws § 51A-6A-11.1 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-11.1
Public trust companies to maintain office and perform trust administration in South Dakota
Status: in_force

A public trust company shall:

(1) Maintain office space in South Dakota for trust company business and for the storage of, and access to, trust company records required by § 51A-6A-30 ;

(2) Hold no less than two quarterly governing board meetings with a majority physically present in South Dakota each calendar year;

(3) Employ, engage, or contract with at least one trust officer or key employee to provide services for the trust company in South Dakota related to the powers of the company in § 51A-6A-29 and to facilitate the examinations required by § 51A-6A-31 ; and

(4) Perform trust administration in South Dakota.

The commission may promulgate rules, pursuant to chapter 1-26 , to establish additional guidelines regarding what constitutes trust administration in South Dakota for purposes of this section.

Source: SL 2010, ch 232, § 18; SL 2012, ch 233, § 2; SL 2015, ch 240, § 3; SL 2016, ch 231, § 4.
S.D. Codified Laws § 51A-3-1 — SD Code / Title 51A / Chapter 3 / Section 51A-3-1
Corporation laws applicable to banks
Status: in_force

All provisions of law applicable to corporations generally shall be applicable to banks, except where inconsistent with this title, in which case this title shall govern.

Source: SL 1969, ch 11, § 3.1; SDCL, § 51-17-1.
S.D. Codified Laws § 51A-6A-38 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-38
Hearing on revocation of trust authority
Status: in_force

A trust company subject to revocation of trust authority shall be afforded the right to a hearing in accordance with the provisions of chapter 1-26 . Any revocation of authority to transact trust business is subject to review in accordance with chapter 1-26 .

Source: SL 1995, ch 268, § 36.
S.D. Codified Laws § 51A-12-9 — SD Code / Title 51A / Chapter 12 / Section 51A-12-9
Nonrisk and government guaranteed loans not included in loan limits
Status: in_force

For the purpose of determining whether a loan is within the loan limits established by this chapter, that portion of a loan described in subdivisions (1), (2) and (3) of this section may not be considered as part of the loan:

(1) That portion of a loan which is secured by a certificate of deposit, time savings certificate or prior evidence of obligation from the bank to the borrower, which obligation is not payable on demand by the borrower;

(2) That portion of a loan secured by bonds, notes, certificates of indebtedness or treasury bills of the United States or by other such obligations, which are backed by the full faith and credit of any department, agency, bureau, board, commission or establishment of the United States or any corporation owned directly or indirectly by the United States;

(3) That portion of a loan secured by unconditional takeout commitments or guarantees of any department, agency, bureau, board, commission or establishment of the state of South Dakota, or of the United States or any corporation owned directly or indirectly by the United States.

Source: SL 1981, ch 346, § 60; SL 1986, ch 402; SDCL, § 51-24-14; SL 1988, ch 377, § 152; SL 1989, ch 411, § 3; SDCL, § 51-24-9.1.
S.D. Codified Laws § 51A-15-22 — SD Code / Title 51A / Chapter 15 / Section 51A-15-22
Applications to enjoin director from suspending activities and taking possession of bank
Status: in_force

Within three days after the director has suspended and taken possession of the property and business of a bank, that bank may apply to the circuit court to enjoin further proceedings. The court, after requiring the director to show cause why further proceedings should not be enjoined and after a hearing and a determination upon the merit of the facts, may dismiss the application, or may enjoin the director from further proceedings, and may void any appointment of a receiver, and direct him or the receiver to surrender the property and business to the bank. This section provides the exclusive method for challenging the actions of the director under this chapter.

Source: SL 1969, ch 11, § 13.7 (2); SL 1970, ch 265, § 66; SL 1982, ch 336, § 4; SL 1988, ch 377, § 169; SDCL, § 51-27-15.
S.D. Codified Laws § 51A-17-101 — SD Code / Title 51A / Chapter 17 / Section 51A-17-101
Maintenance of permissible investments
Status: in_force

(1) A licensee shall maintain at all times permissible investments that have a market value computed in accordance with United States generally accepted accounting principles of not less than the aggregate amount of all of its outstanding money transmission obligations.

(2) Except for permissible investments enumerated in § 51A-17-102 , the director, with respect to any licensee, may by rule or order limit the extent to which a specific investment maintained by a licensee within a class of permissible investments may be considered a permissible investment, if the specific investment represents undue risk to customers, not reflected in the market value of investments.

(3) Permissible investments, even if commingled with other assets of the licensee, are held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations in the event of insolvency, the filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. § 101 to 110 (January 1, 2024) for bankruptcy or reorganization, the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or in the event of an action by a creditor against the licensee who is not a beneficiary of this statutory trust. No permissible investments impressed with a trust pursuant to this section shall be subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiary of this statutory trust.

(4) Upon the establishment of a statutory trust in accordance with subdivision (3) of this section or when any funds are drawn on a letter of credit pursuant to subdivision 51A-17-102 (4), the director shall notify the applicable regulator of each state in which the licensee is licensed to engage in money transmission, if any, of the establishment of the trust or the funds drawn on the letter of credit, as applicable. Notice shall be deemed satisfied if performed pursuant to a multistate agreement or through NMLS. Funds drawn on a letter of credit, and any other permissible investments held in trust for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations, are deemed held in trust for the benefit of such purchasers and holders on a pro rata and equitable basis in accordance with statutes pursuant to which permissible investments are required to be held in this state, and other states, as applicable. Any statutory trust established hereunder shall be terminated upon extinguishment of all of the licensee's outstanding money transmission obligations.

(5) The director, by rule or by order, may allow other types of investments that the director determines are of sufficient liquidity and quality to be a permissible investment. The director is authorized to participate in efforts with other state regulators to determine that other types of investments are of sufficient liquidity and quality to be a permissible investment.

Source: SL 2024, ch 196, § 50.
S.D. Codified Laws § 51A-6A-44 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-44
Appointment of receiver--Bond--Qualifications--Report--Removal
Status: in_force

When the director takes charge of any trust company, the director shall ascertain its actual condition as soon as possible by making a thorough investigation into its affairs and condition. If the director is satisfied that the trust company cannot resume business or liquidate its indebtedness to the satisfaction of its creditors, the director shall appoint a receiver and require the receiver to give such bond as the director considers proper. The director also shall fix reasonable compensation for the receiver, but the compensation for the receiver is subject to the approval of the circuit court of the county in which the trust company is located upon the application of any party in interest.

Any receiver shall have had at least five years of experience with financial institutions. However, upon written application made within thirty days after the findings of insolvency, the director shall appoint as receiver any person whom the holders of more than sixty percent of the claims against the trust company agree upon in writing. The creditors may also agree upon the compensation and charges to be paid the receiver. Any receiver so appointed shall make a complete report to the director covering the receiver's acts and proceedings as a receiver. The director may remove for cause any receiver and appoint the receiver's successor.

Source: SL 1995, ch 268, § 42; SL 2005, ch 260, § 10.
S.D. Codified Laws § 51A-18-1 — SD Code / Title 51A / Chapter 18 / Section 51A-18-1
Definitions
Status: in_force

Terms used in this chapter mean:

(1) "Charges," fees charged to a user for a virtual currency transaction, plus the difference between the market price of virtual currency at the time of the transaction and the price charged to the user;

(2) "Distributed ledgers," a digital system maintained across multiple computers for recording virtual currency transactions using blockchain technology, as defined in § 53-12-1 , or substantially similar technology;

(3) "Licensee," a person that:

(a) Is licensed pursuant to chapter 51A-17 ; and

(b) Operates a virtual currency kiosk in this state;

(4) "User," a person that uses a virtual currency kiosk for a virtual currency transaction;

(5) "Virtual currency," a natively electronic asset that confers access, economic, or proprietary powers or rights and is recorded using cryptographically secured distributed ledgers, or substantially similar technology; and

(6) "Virtual currency kiosk," an:

(a) Application or product that directs a user to remit payment in person, including through a clerk or other intermediary, for the purpose of completing a virtual currency transaction; or

(b) Electronic terminal operated by or on behalf of a licensee engaged in virtual currency business activities, or a person acting on behalf of a licensee engaged in virtual currency business activities, whether or not the licensee owns the kiosk or provides custodial services, provided the terminal facilitates the exchange of virtual currency for bank credit, money, or other virtual currency by:

(i) Connecting to a virtual currency exchange that performs a virtual currency transaction; or

(ii) Drawing upon virtual currency or funds maintained by the licensee; and

(7) "Virtual currency transaction," a form of money transmission in which a person, in whole or in part, through a virtual currency kiosk or by other electronic means, exchanges, purchases, sells, or transfers virtual currency.

Source: SL 2026, ch 193, § 1.
S.D. Codified Laws § 51A-2-8 — SD Code / Title 51A / Chapter 2 / Section 51A-2-8
Terms of commission members--Vacancies--Removal for cause
Status: in_force

The term of office of members of the commission as created by this chapter is three years each. However, the term of office of only one member who is a director or officer of a bank may expire each year.

Vacancies arising other than from the natural expiration of a term shall be appointed for the remainder of the unexpired term only and such appointees shall meet the qualifications prescribed by law for the vacated position. All appointments to the commission are effective on the thirty-first day of October in which the Governor appoints the member, unless otherwise designated by the Governor. Members shall serve until their successors are appointed and qualified. Any member may be removed by the Governor for cause. The three-year terms expire on October thirtieth in the third year of appointment.

Any member's term ending June 30, 2013, or thereafter is extended to October thirtieth in the year the term is to expire.

Source: SL 1933, ch 47, § 1; SDC 1939, § 6.0201; SL 1941, ch 13; SL 1945, ch 26; SL 1966, ch 11; SDCL § 51-2-10; SL 1969, ch 11, § 2.8; SL 1970, ch 265, § 4; SL 1975, ch 7, § 3; SL 1988, ch 377, § 23; SDCL § 51-16-8; SL 2012, ch 16, § 2; SL 2013, ch 176, § 2.
S.D. Codified Laws § 51A-2-1 — SD Code / Title 51A / Chapter 2 / Section 51A-2-1
Establishment of Division of Banking
Status: in_force

The Division of Banking is established and shall be administered under the direction and supervision of the Department of Labor and Regulation. The division is charged with supervision and control over the activities set forth in this title, and it shall exercise such other jurisdiction over such other activities as shall be conferred upon it by the Legislature.

Source: SL 1909, ch 222, art 1, § 1; SL 1915, ch 102, art 1, § 1; SL 1917, ch 256, § 1; RC 1919, § 8917; SL 1933, ch 47, § 5; SDC 1939, § 6.0205 (1); SDCL § 51-2-18; SL 1969, ch 11, § 2.1; SL 1988, ch 377, § 13; SDCL § 51-16-1; SL 2004, ch 17, § 299; SL 2011, ch 1 (Ex. Ord. 11-1 ), § 162, eff. Apr. 12, 2011.
S.D. Codified Laws § 51A-7-28 — SD Code / Title 51A / Chapter 7 / Section 51A-7-28
Prohibitions concerning bank names
Status: in_force

No provision of this chapter permits any person, partnership, association, or corporation to identify a newly formed bank, to rename an existing bank, or to open a branch of a newly formed or existing bank, if the effect of such formation, opening, or renaming would be likely to create confusion between the trade name, trademark, service mark, or trade identity of such bank or branch and an existing bank or branch having prior trade name, trademark, service mark, or trade identity rights in the trade area sought to be entered by such newly formed or renamed bank or branch.

Source: SL 1996, ch 281.
S.D. Codified Laws § 51A-17-86 — SD Code / Title 51A / Chapter 17 / Section 51A-17-86
Report of licensee's authorized delegates
Status: in_force

(1) Each licensee must submit a report of authorized delegates within forty-five days of the end of the calendar quarter. The director is authorized and encouraged to utilize NMLS for the submission of the report required by this section provided that such functionality is consistent with the requirements of this section.

(2) The authorized delegate report must include, at a minimum, each authorized delegate's:

(a) Company legal name;

(b) Taxpayer employer identification number;

(c) Principal provider identifier;

(d) Physical address;

(e) Mailing address;

(f) Any business conducted in other states;

(g) Any fictitious or trade name;

(h) Contact person name, phone number, and email;

(i) Start date as licensee’s authorized delegate;

(j) End date acting as licensee’s authorized delegate, if applicable;

(k) Court orders pursuant to § 51A-17-92 ; and

(l) Any other information the director reasonably requires with respect to the authorized delegate.

Source: SL 2024, ch 196, § 35.
S.D. Codified Laws § 51A-17-61 — SD Code / Title 51A / Chapter 17 / Section 51A-17-61
Application for license--Fee--Waiver
Status: in_force

(1) Applicants for a license must apply in a form and in a medium as prescribed by the director. Each form must contain content as set forth by rule, regulation, instruction, or procedure of the director and may be changed or updated by the director in accordance with applicable law in order to carry out the purposes of this chapter and maintain consistency with NMLS licensing standards and practices. The application must state or contain, as applicable:

(a) The legal name and residential and business addresses of the applicant and any fictitious or trade name used by the applicant in conducting its business;

(b) A list of any criminal convictions of the applicant and any material litigation in which the applicant has been involved in the ten-year period next preceding the submission of the application;

(c) A description of any money transmission previously provided by the applicant and the money transmission that the applicant seeks to provide in this state;

(d) A list of the applicant's proposed authorized delegates and the locations in this state where the applicant and its authorized delegates propose to engage in money transmission;

(e) A list of other states in which the applicant is licensed to engage in money transmission and any license revocations, suspensions, or other disciplinary action taken against the applicant in another state;

(f) Information concerning any bankruptcy or receivership proceedings affecting the licensee or a person in control of a licensee;

(g) A sample form of contract for authorized delegates, if applicable;

(h) A sample form of payment instrument or stored value, as applicable;

(i) The name and address of any federally insured depository financial institution through which the applicant plans to conduct money transmission; and

(j) Any other information the director or NMLS reasonably requires with respect to the applicant.

(2) If an applicant is a corporation, limited liability company, partnership, or other legal entity, the applicant must also provide:

(a) The date of the applicant's incorporation or formation and state or country of incorporation or formation;

(b) If applicable, a certificate of good standing from the state or country in which the applicant is incorporated or formed;

(c) A brief description of the structure or organization of the applicant, including any parents or subsidiaries of the applicant, and whether any parents or subsidiaries are publicly traded;

(d) The legal name, any fictitious or trade name, all business and residential addresses, and the employment, as applicable, in the ten-year period next preceding the submission of the application of each key individual and person in control of the applicant;

(e) A list of any criminal convictions and material litigation in which a person in control of the applicant that is not an individual has been involved in the ten-year period preceding the submission of the application;

(f) A copy of audited financial statements of the applicant for the most recent fiscal year and for the two-year period next preceding the submission of the application or, if determined to be acceptable to the director, certified unaudited financial statements for the most recent fiscal year or other period acceptable to the director;

(g) A certified copy of unaudited financial statements of the applicant for the most recent fiscal quarter;

(h) If the applicant is a publicly traded corporation, a copy of the most recent report filed with the United States Securities and Exchange Commission under Section 13 of the federal Securities Exchange Act of 1934, 15 U.S.C. § 78m (January 1, 2024);

(i) If the applicant is a wholly owned subsidiary of a corporation publicly traded in the United States, a copy of audited financial statements for the parent corporation for the most recent fiscal year or a copy of the parent corporation's most recent report filed under Section 13 of the U.S. Securities Exchange Act of 1934, 15 U.S.C. § 78m (January 1, 2024) or for a corporation publicly traded outside the United States, a copy of similar documentation filed with the regulator of the parent corporation's domicile outside the United States;

(j) The name and address of the applicant's registered agent in this state; and

(k) Any other information the director reasonably requires with respect to the applicant.

(3) Each application must be accompanied by a nonrefundable application fee not to exceed five hundred dollars and a license fee not to exceed one thousand dollars. The license fee must be refunded if the application is denied. The director shall establish the application and license fees by rules promulgated pursuant to chapter 1-26 .

(4) The director may waive one or more requirements of this section or permit an applicant to submit other information in lieu of the required information.

Source: SL 2024, ch 196, § 10.
S.D. Codified Laws § 51A-12-2.4 — SD Code / Title 51A / Chapter 12 / Section 51A-12-2.4
Derivative transaction defined
Status: in_force

For purposes of § 51A-12-2.3 , a derivative transaction is any transaction that is a contract, agreement, swap, warrant, note, or option that is based in whole, or in part, on the value of any interest in, or any quantitative measure or the occurrence of any event relating to interest rates.

Source: SL 2013, ch 240, § 2.
S.D. Codified Laws § 51A-1-20 — SD Code / Title 51A / Chapter 1 / Section 51A-1-20
Central bank digital currency--Private transaction--Alternative required
Status: in_force

A person engaging in the purchase or sale of any goods or services or trading in financial products or services and who accepts central bank digital currency must also accept another form of legal tender.

Source: SL 2024, ch 195, § 2.
S.D. Codified Laws § 51A-6A-31 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-31
Periodic examination of trust company--Report of examination--Cooperative, coordinating and information-sharing agreements among agencies
Status: in_force

The director shall examine each trust company at least once every thirty-six months or more frequently if the director considers it necessary to make a full and careful examination and inquiry into the condition of the affairs of the trust company. For purposes of the examination, the director may administer oaths and examine under oath the board members, officers, employees, and agents of any trust company. The examination shall be reduced to writing by the person making it, and the person's reports shall contain a full, true, and careful statement of the condition of the trust company. The director, in lieu of making a direct examination and inquiry at the trust company office, may examine the trust company in whole or in part by examining the trust company records or documents off-site. For an examination conducted wholly or partially off-site, the director may require production of any records or documents of the trust company at the director's office. The director shall provide a copy of the written examination report to the governing board of the trust company. Neither the director nor any employee of the Division of Banking may have any ownership interest in a trust company.

The director may examine an out-of-state trust institution's trust service offices either on- or off-site to determine whether such offices are being operated in compliance with the laws of this state and in accordance with safe and sound practices.

The director may enter into cooperative, coordinating, and information-sharing agreements with any other supervisory agency or any organization affiliated with or representing one or more supervisory agencies with respect to the periodic examination or other supervision of any trust company or out-of-state trust institution, and the director may accept such agency's or organization's report of examination or investigation in lieu of conducting an examination or investigation.

Source: SL 1995, ch 268, § 29; SL 2006, ch 243, § 1.
S.D. Codified Laws § 51A-17-81 — SD Code / Title 51A / Chapter 17 / Section 51A-17-81
Acquisition of control--Application--Determination
Status: in_force

Before filing an application for approval to acquire control of a licensee a person may request in writing a determination from the director as to whether the person would be considered a person in control of a licensee upon consummation of a proposed transaction. If the director determines that the person would not be a person in control of a licensee, the proposed person and transaction is not subject to the requirements of subdivisions 51A-17-72 (1) and (2).

Source: SL 2024, ch 196, § 30.
S.D. Codified Laws § 51A-5-15 — SD Code / Title 51A / Chapter 5 / Section 51A-5-15
Records of depositor to show ownership of securities--Transfers by book entries
Status: in_force

The records of the bank must at all times show the ownership of the securities held in such account. Ownership of, and other interests in, the securities credited to such account may be transferred by entries on the books of the federal reserve bank without physical delivery of any securities.

Source: SDCL, § 51-19-7 as added by SL 1975, ch 292, § 1; SDCL, § 51-19-7.2; SL 1995, ch 268, § 72; SL 1997, ch 272, § 10; SL 2021, ch 203, § 3.
S.D. Codified Laws § 51A-18-8 — SD Code / Title 51A / Chapter 18 / Section 51A-18-8
Transaction limits
Status: in_force

A licensee shall establish:

(1) A daily transaction limit not exceeding one thousand dollars, or the equivalent in virtual currency, for any user; and

(2) A thirty-day virtual currency transaction limit not exceeding ten thousand dollars, or the equivalent in virtual currency, for any user.

The transaction limits and protections provided for in this chapter apply to all products and services offered through the licensee's virtual currency kiosk. Any alternative product or service of the licensee, including affiliated kiosks, online portals for purchases, and over-the-counter transactions, may not be used to circumvent or exceed the prescribed limits.

Source: SL 2026, ch 193, § 8.
S.D. Codified Laws § 51A-17-78 — SD Code / Title 51A / Chapter 17 / Section 51A-17-78
Acquisition of control--Exceptions
Status: in_force

The requirements of subdivisions 51A-17-72 (1) and (2) do not apply to any of the following:

(1) A person that acts as a proxy for the sole purpose of voting at a designated meeting of the shareholders or holders of voting shares or voting interests of a licensee or a person in control of a licensee;

(2) A person that acquires control of a licensee by devise or descent;

(3) A person that acquires control of a licensee as a personal representative, custodian, guardian, conservator, or trustee, or as an officer appointed by a court of competent jurisdiction or by operation of law;

(4) A person that is exempt under subdivision 51A-17-53 (7);

(5) A person that the director determines is not subject to subdivision 51A-17-72 (1) based on the public interest;

(6) A public offering of securities of a licensee or a person in control of a licensee; or

(7) An internal reorganization of a person in control of the licensee where the ultimate person in control of the licensee remains the same.

Source: SL 2024, ch 196, § 27.
S.D. Codified Laws § 51A-2-26 — SD Code / Title 51A / Chapter 2 / Section 51A-2-26
Permanent order of commission against unsound practice
Status: in_force

The commission may enter, subject to chapter 1-26 , a permanent order, upon the return to it of a temporary order, issued by the director pursuant to § 51A-2-25 and a showing that the bank has engaged in unsound or unlawful practices.

Source: SL 1981, ch 346, § 13; SL 1988, ch 377, § 42; SDCL, § 51-16-27.1.
S.D. Codified Laws § 51A-4-43 — SD Code / Title 51A / Chapter 4 / Section 51A-4-43
Access to motor vehicle title and lien information on state's computer system
Status: in_force

Any bank may be provided access to motor vehicle title and lien information maintained on the state's computer system via a modem and terminal owned by the bank. The Department of Labor and Regulation shall promulgate rules pursuant to chapter 1-26 to specify access availability. The secretary of state shall promulgate rules pursuant to chapter 1-26 to specify cost of access. The Department of Revenue may deny or revoke authority previously granted for accessing this information if the information accessed is used for any reason unrelated to the business of the bank.

Source: SL 1994, ch 363, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1 ), § 162, eff. Apr. 12, 2011.
S.D. Codified Laws § 51A-12-2.3 — SD Code / Title 51A / Chapter 12 / Section 51A-12-2.3
Loan defined
Status: in_force

For the purpose of calculating loan or credit limitations pursuant to § 51A-12-2 , a loan includes any credit exposure to a borrower arising from a derivative transaction, repurchase agreement, reverse repurchase agreement, securities lending transaction, or securities borrowing transaction between a bank and that borrower.

Source: SL 2013, ch 240, § 1.
S.D. Codified Laws § 51A-4-1.1 — SD Code / Title 51A / Chapter 4 / Section 51A-4-1.1
Banking with industrial hemp or marijuana licensees and associated persons authorized
Status: in_force

A bank may, directly or through subsidiaries, carry on the business of banking, pursuant to § 51A-4-1 , with any person licensed in this state to engage in the business of industrial hemp or marijuana, or with any person engaging in legal business dealings with such licensee.

Source: SL 2021, ch 202, § 1.
S.D. Codified Laws § 51A-19-7 — SD Code / Title 51A / Chapter 19 / Section 51A-19-7
Actions not wrongful dishonor
Status: in_force

Notwithstanding any other law, the refusal by a financial institution to engage in a transaction in accordance with this chapter does not constitute the wrongful dishonor of an item under § 57A-4-402 .

Source: SL 2026, ch 194, § 7.
S.D. Codified Laws § 51A-6A-37 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-37
Revocation of franchise for failure to comply with lawful requirements
Status: in_force

Any trust company which refuses or neglects to comply with any requirement lawfully made upon it by the director for a period of ninety days after demand in writing is made forfeits its franchise, and the director shall thereupon revoke its authority to transact business. The director shall give notice of the revocation to the president or other managing officer of the trust company. The attorney general, upon the request of the director, then shall begin action for the appointment of a receiver for the trust company and to dissolve the trust company.

Source: SL 1995, ch 268, § 35.
S.D. Codified Laws § 51A-3-23 — SD Code / Title 51A / Chapter 3 / Section 51A-3-23
Extension of charter
Status: in_force

Within one year prior to the expiration of the period for which it was incorporated a bank may, with the approval of at least a majority of the capital stock of such corporation, extend its corporate existence for an additional period, not to exceed twenty years, by amending its articles of incorporation as provided in § 51A-3-22 .

Source: SL 1903, ch 80, §§ 1 to 3; RC 1919, § 8964; SDC 1939, § 6.0308; SL 1941, ch 16; SDCL, § 51-3-10; SL 1969, ch 11, § 3.20; SL 1972, ch 254; SL 1980, ch 332, § 1; SDCL, § 51-17-22.
S.D. Codified Laws § 51A-6A-27 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-27
Dividends not permitted from required capital
Status: in_force

A trust company may not permit to be withdrawn, in the form of dividends, any portion of its capital required under §§ 51A-6A-19 and 51A-6A-19.1 .

Source: SL 1995, ch 268, § 25; SL 2015, ch 240, § 6; SL 2019, ch 205, § 4.
S.D. Codified Laws § 51A-5-5 — SD Code / Title 51A / Chapter 5 / Section 51A-5-5
Deposit available for satisfaction of claims upon liquidation, abandonment of trust powers, or resignation from fiduciary positions
Status: in_force

Upon liquidation, abandonment of trust powers, or resignation from all fiduciary positions, the deposit shall be made available for the reasonable satisfaction of claims involving fiduciary accounts. Any surplus remaining after the satisfaction of all such claims shall be returned to the bank or trust company.

Source: SL 1969, ch 11, § 5.3; SDCL, § 51-19-4; SL 1995, ch 268, § 66.
S.D. Codified Laws § 51A-15-27 — SD Code / Title 51A / Chapter 15 / Section 51A-15-27
Expenses of director paid from assets
Status: in_force

All necessary and reasonable expenses of the director's suspension and taking possession of a bank and of its reorganization or liquidation shall be paid from the assets thereof.

Source: SL 1911, ch 256, § 15; SL 1915, ch 102, art 1, § 14; SL 1917, ch 140, § 4; RC 1919, § 8930; SL 1925, ch 93, § 2; SDC 1939, § 6.0619; SL 1941, ch 18; SDCL, § 51-14-51; SL 1969, ch 11, § 13.10; SL 1970, ch 265, § 67; SL 1988, ch 377, § 171; SDCL, § 51-27-19.
S.D. Codified Laws § 51A-5-4 — SD Code / Title 51A / Chapter 5 / Section 51A-5-4
Deposit required to do trust business--Amount and form of deposit--Disposition of income
Status: in_force

Any bank empowered by its articles of incorporation to do trust business, shall, before transacting any such business, deposit and keep on deposit with the division evidences of indebtedness acceptable to the director which are payable to bearer or recorded in the name of the division and which constitute readily marketable legal investments for funds held by a bank as fiduciary in the amount of one hundred thousand dollars. Such deposit shall be for the security of the trust creditors of such bank or trust company, and shall be in bonds or notes and mortgages on real property within this state worth double the amount secured thereby, or insured by the federal housing administration, or bonds of the United States, or any state of the United States that has not defaulted on its principal or interest within ten years, or any organized county or township or first or second class municipality or school district in this state or some other state, and upon which there has been no default in payment of interest or principal. Income from such securities shall belong to and be paid the bank or trust company as long as it continues to conduct its business in the ordinary course and so long as authorized by the director.

Source: SDC 1939, § 6.0502; SDCL § 51-7-2; SL 1969, ch 11, § 5.3; SL 1970, ch 265, § 36; SL 1988, ch 377, § 112; SDCL § 51-19-3; SL 1992, ch 60, § 2; SL 1994, ch 364, § 2; SL 2010, ch 232, § 23.
S.D. Codified Laws § 51A-17-74 — SD Code / Title 51A / Chapter 17 / Section 51A-17-74
Acquisition of control--Application--Completion meaning
Status: in_force

A determination by the director that an application for acquisition of control under § 51A-17-72 is complete and is accepted for processing means only that the application, on its face, appears to include all of the items and address all of the matters that are required, and is not an assessment of the substance of the application or of the sufficiency of the information provided.

Source: SL 2024, ch 196, § 23.
S.D. Codified Laws § 51A-10-4 — SD Code / Title 51A / Chapter 10 / Section 51A-10-4
Deposits in trust for another
Status: in_force

Whenever any deposit is made in a bank by a person which in form is in trust for another, but no other or further notice of the existence and terms of a legal and valid trust is given in writing to the bank, in the event of the death of the trustee, the deposit or any part thereof, may be paid to the person for whom the deposit was made, together with the dividends or interest thereon, whether or not such person is a minor.

Source: SL 1969, ch 11, § 8.5; SDCL, § 51-22-6.
S.D. Codified Laws § 51A-6A-25 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-25
Rights and liability of preferred stockholders--Dividends
Status: in_force

The holders of preferred stock are not liable for assessments to restore any impairment in the capital stock of a trust company. The holders of preferred stock are entitled to receive cumulative dividends, have voting and conversion rights, and have control of management, as may be provided in the articles of incorporation and upon the written approval of the director. The preferred stock shall be retired as provided in the articles of incorporation.

No dividends may be declared or paid on common stock until all cumulative dividends, if any, on the preferred stock have been paid, and if the trust company is dissolved or placed in liquidation, no payments may be made to the holders of common stock until the holders of the preferred stock first have been paid in full for any sums due upon the preferred stock.

Source: SL 1995, ch 268, § 23.
S.D. Codified Laws § 51A-6A-15 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-15
Meetings of governing board--Examination and audit of books and records
Status: in_force

The governing board shall hold at least four regular meetings each year, at least one of which shall be held during each calendar quarter. Unless otherwise provided in the trust company's organizational documents, the governing board or an authorized committee may conduct, or permit any member to participate in, a regular or special meeting through the use of any means of communication by which all members participating may simultaneously hear each other during the meeting. A member participating in a meeting by this means is considered present in person at the meeting. The governing board or an auditor selected by them shall make a thorough examination of the books, records, funds, and securities held by the trust company at each of the quarterly meetings. The result of the examination shall be recorded in detail. If the governing board selects an auditor, the auditor's findings shall be reported directly to the governing board. In lieu of the required four quarterly examinations, the governing board may accept one annual audit by a certified public accountant or an independent auditor approved by the director.

The provisions of this section do not alter, amend, or change the requirement of a public trust company to hold no less than two quarterly governing board meetings with a majority physically present in South Dakota each calendar year pursuant to § 51A-6A-11.1 .

Source: SL 1995, ch 268, § 12; SL 2016, ch 231, § 7.
S.D. Codified Laws § 51A-2-19 — SD Code / Title 51A / Chapter 2 / Section 51A-2-19
Subpoena power--Witness fees and mileage
Status: in_force

The director may issue subpoenas and subpoenas duces tecum returnable to any place within this state relating to any matter under investigation. He may administer oaths and examine witnesses under oath for like purposes and to that end may invoke the aid of any circuit court of this state pursuant to chapter 21-34 in enforcing the provisions of this section. Witness fees and mileage are the same as are allowed in the circuit courts of this state and are a proper charge against the assets of the bank examined, payable immediately upon the order of the director.

Source: SDCL, § 51-16-21; SL 1988, ch 377, § 34; SDCL, § 51-16-21.1.
S.D. Codified Laws § 51A-6A-12 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-12
List of owners--Annual submission to director--Verification of list
Status: in_force

Every trust company shall keep a full and correct list of names and addresses of all of its owners and the number of shares owned by each. This list of owners shall be kept and maintained in the office where its business is transacted, and during the business hours of the trust company, the list is subject to the inspection of all owners. The president or cashier of any trust company shall submit to the director on or before the thirty - first day of January of each year a list of owners as of the first day of the calendar year. The president or cashier shall verify the correctness of the list under oath.

Source: SL 1995, ch 268, § 9.
S.D. Codified Laws § 51A-17-60 — SD Code / Title 51A / Chapter 17 / Section 51A-17-60
Licensing--Director authority
Status: in_force

(1) To establish consistent licensing between this state and other states, the director is authorized and encouraged to:

(a) Implement all licensing provisions of this chapter in a manner that is consistent with other states that have adopted this chapter or multistate licensing processes; and

(b) Participate in nationwide protocols for licensing cooperation and coordination among state regulators provided that such protocols are consistent with this chapter.

(2) In order to fulfill the purposes of this chapter, the director is authorized and encouraged to establish relationships or contracts with NMLS or other entities designated by NMLS to enable the director to:

(a) Collect and maintain records;

(b) Coordinate multistate licensing processes and supervision processes;

(c) Process fees; and

(d) Facilitate communication between the division and licensees or other persons subject to this chapter.

(3) The director is authorized and encouraged to utilize NMLS for all aspects of licensing in accordance with this chapter, including, but not limited to, license applications, applications for acquisitions of control, surety bonds, reporting, criminal history background checks, credit checks, fee processing, and examinations.

(4) The director is authorized and encouraged to utilize NMLS forms, processes, and functionalities in accordance with this chapter. In the event NMLS does not provide functionality, forms, or processes for a provision of this chapter, the director is authorized and encouraged to strive to implement the requirements in a manner that facilitates uniformity with respect to licensing, supervision, reporting, and regulation of licensees which are licensed in multiple jurisdictions.

(5) For the purpose of participating in the Nationwide Multistate Licensing System and Registry, the director is authorized to waive or modify, in whole or in part, by rule, regulation or order, any or all of the requirements and to establish new requirements as reasonably necessary to participate in the Nationwide Multistate Licensing System and Registry.

Source: SL 2024, ch 196, § 9.
S.D. Codified Laws § 51A-6A-13 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-13
Governing board--Membership--Election--Vacancies
Status: in_force

The business of any trust company shall be managed and controlled by its governing board and includes the authority to provide for bonus payments, in addition to ordinary compensation, for any of its officers and employees. The governing board of a private trust company shall consist of not less than three nor more than twelve members, all of whom shall be elected by the owners of the trust company at any regular annual meeting, with terms not to exceed three years. The governing board of a public trust company shall consist of not less than five nor more than twelve members, all of whom shall be elected by the owners of the trust company at any regular meeting held during each calendar year. If the number of board members elected is less than twelve, the number of board members may be increased so long as the total number does not exceed twelve. If the number is increased, the first additional board members may be elected at a special meeting of the owners. The board members shall be elected and any vacancies filled in the manner as provided in the provisions regarding general corporations or limited liability companies, as applicable. At all times one of the directors shall be a resident of this state and at least one-half of the directors shall be citizens of the United States. Any board member of any trust company who becomes indebted to the trust company on any judgment forfeits the position of board member, and the vacancy shall be filled as provided by law.

Source: SL 1995, ch 268, § 10; SL 1998, ch 282, § 32; SL 2006, ch 243, § 11; SL 2007, ch 276, § 1; SL 2009, ch 252, § 1; SL 2011, ch 212, § 11; SL 2015, ch 240, § 4.
S.D. Codified Laws § 51A-11-9 — SD Code / Title 51A / Chapter 11 / Section 51A-11-9
Adverse claims to safe deposit
Status: in_force

Adverse claims to the contents of a safe deposit box shall be governed by § 51A-1-3 , insofar as such section may be applicable to this chapter.

Source: SL 1969, ch 11, § 9.9; SDCL, § 51-23-9.
S.D. Codified Laws § 51A-12-5 — SD Code / Title 51A / Chapter 12 / Section 51A-12-5
Discounting not considered as money borrowed for purposes of loan limitation
Status: in_force

For the purposes of § 51A-12-2 , the discount of bills of exchange drawn in good faith against actual existing values, and the discount of commercial paper actually owned by the person negotiating the same shall not be considered as money borrowed.

Source: SL 1909, ch 222, art 2, § 29; SL 1915, ch 102, art 2, § 33; RC 1919, § 8980; SL 1923, ch 114; SL 1927, ch 59, § 1; SDC 1939, § 6.0428; SL 1943, ch 18; SL 1947, ch 27; SL 1957, ch 14; SL 1961, ch 19; SL 1963, ch 27; SDCL, § 51-11-9; SL 1969, ch 11, § 10.3; SDCL, § 51-24-5.
S.D. Codified Laws § 51A-7-11 — SD Code / Title 51A / Chapter 7 / Section 51A-7-11
Construction or operation of detached drive-in facility--Approval required
Status: in_force

No detached drive-in facility may be constructed or operated without the prior written approval of the director, in the case of a state bank, or the appropriate federal regulatory authority in the case of a national bank.

Source: SL 1965, ch 21, § 7; SDCL § 51-8-9; SL 1969, ch 11, § 6.12; SDCL § 51-20-12; SL 2008, ch 252, § 33.
S.D. Codified Laws § 51A-15-4 — SD Code / Title 51A / Chapter 15 / Section 51A-15-4
Resignation of fiduciary positions and settlement of accounts on voluntary liquidation
Status: in_force

As soon after approval as may be practicable the bank shall resign all fiduciary positions and take such action as may be necessary to settle its fiduciary accounts.

Source: SL 1969, ch 11, § 13.2 (3); SDCL, § 51-27-4.
S.D. Codified Laws § 51A-4-19 — SD Code / Title 51A / Chapter 4 / Section 51A-4-19
Change in banking hours--Notice to division
Status: in_force

If any bank adopts new hours of operation for its daily business to customers, it shall inform the division prior to the effective date of the change.

Source: SL 1969, ch 11, § 4.13; SL 1981, ch 346, § 34; SL 1988, ch 377, § 90; SDCL, § 51-18-14.
S.D. Codified Laws § 51A-12-17 — SD Code / Title 51A / Chapter 12 / Section 51A-12-17
Maintenance of deposit as condition for loan
Status: in_force

A bank may require a borrower to maintain funds on deposit as a condition precedent to the granting of credit or any loan.

Source: SL 1983, ch 359, § 2; SDCL, § 51-24-18.
S.D. Codified Laws § 51A-3-8 — SD Code / Title 51A / Chapter 3 / Section 51A-3-8
Acceptance of application for charter
Status: in_force

The director shall notify the incorporators of his acceptance for filing of an application. If the application and accompanying documents required in § 51A-3-7 do not conform to the requirements of this title, or the rules of the commission, the director shall return the application calling attention to the defects therein. However, if the director does not act within twenty days of his receipt thereof, the application is considered to have been accepted by him.

Source: SL 1969, ch 11, § 3.13; SL 1988, ch 377, § 64; SDCL, § 51-17-14.
S.D. Codified Laws § 51A-4-46 — SD Code / Title 51A / Chapter 4 / Section 51A-4-46
Debt cancellation contracts and debt suspension contracts--Fee
Status: in_force

A bank may enter into debt cancellation contracts and debt suspension contracts and charge a fee for those contracts in connection with any extension of credit that it makes to its customers.

Source: SL 2004, ch 290, § 2.
S.D. Codified Laws § 51A-6A-30 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-30
Retention of records--Promulgation of rules--Reproduction of records--Duty of confidentiality
Status: in_force

A trust company shall retain its business records in accordance with the provisions of this section. Each trust company shall retain permanently the minute books of meetings of its owners and governing board, its capital stock and ownership unit ledger and capital stock or ownership unit certificate ledger or stubs, its general ledger or the record kept in lieu of a general ledger, its daily statements of condition, and all records which the director shall, in accordance with the provisions of this section, require to be retained permanently. All other records of a trust company shall be retained for such periods as the commission prescribes. The commission shall promulgate rules pursuant to chapter 1-26 classifying all records kept by trust companies, prescribing the period for which records of each class shall be retained, and requiring a record of destruction of records as the commission deems advisable. The periods may be permanent or for a term of years. Before adoption, amendment, or revocation of the rules the commission shall consider:

(1) Actions and administrative proceedings in which the production of trust company records might be necessary or desirable;

(2) State and federal statutes of limitation applicable to such actions or proceedings;

(3) The availability of information contained in trust company records from other sources; and

(4) Any other matters as the commission considers pertinent to the interest of customers and owners of trust companies and of the people of this state having the records available.

Any trust company may destroy any record which has been retained for the period prescribed, in accordance with the terms of this section for retention of records of its class, and is, after it has destroyed a record, under no duty to produce the record.

Instead of retention of the original records, any trust company may cause any of its records in its custody, including those held by it as a fiduciary, to be photographed or otherwise reproduced to permanent form. Any photograph or reproduction has the same force and effect as the original and may be admitted in evidence equally with the original.

Any trust company may cause any transactions, information, and data occurring in the regular course of its operations to be recorded and maintained by electronic means. When the electronic records of the transactions, information, and data are converted to writing, the writings shall constitute the original records of the transactions, information, and data and have the force and effect of the original records.

Nothing in this section may be construed to affect any duty of a trust company to preserve the confidentiality of its records.

Source: SL 1995, ch 268, § 28.
S.D. Codified Laws § 51A-6A-32 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-32
Examination of fiduciary affairs of officers or employees--Examination of affiliated companies or corporations
Status: in_force

If upon the examination of any trust company, the director considers it necessary, the director may examine the fiduciary affairs of any officer or employee of any trust company; and upon similar determination, the director may examine any investment company or holding company or corporation that is affiliated with any trust company as to matters relevant to the safety and soundness of the trust company. Determinations by the director pursuant to this section are subject to review by the commission pursuant to chapter 1-26 .

Source: SL 1995, ch 268, § 30; SL 2014, ch 226, § 3.
S.D. Codified Laws § 51A-17-90 — SD Code / Title 51A / Chapter 17 / Section 51A-17-90
Requirements for licensee to conduct business through authorized delegate--Licensee to notify delegates of license
Status: in_force

(1) In this section, "remit" means to make direct payments of money to a licensee or its representative authorized to receive money or to deposit money in a bank in an account specified by the licensee.

(2) Before a licensee is authorized to conduct business through an authorized delegate or allows a person to act as the licensee's authorized delegate, the licensee must:

(a) Adopt, and update as necessary, written policies and procedures reasonably designed to ensure that the licensee's authorized delegates comply with applicable state and federal law;

(b) Enter into a written contract that complies with subdivision (4) of this section; and

(c) Conduct a reasonable risk-based background investigation sufficient for the licensee to determine whether the authorized delegate has complied and will likely comply with applicable state and federal law.

(3) An authorized delegate must operate in full compliance with this chapter.

(4) The written contract required by subdivision (2) of this section must be signed by the licensee and the authorized delegate and, at a minimum, must:

(a) Appoint the person signing the contract as the licensee's authorized delegate with the authority to conduct money transmission on behalf of the licensee;

(b) Set forth the nature and scope of the relationship between the licensee and the authorized delegate and the respective rights and responsibilities of the parties;

(c) Require the authorized delegate to agree to fully comply with all applicable state and federal laws, rules, and regulations pertaining to money transmission, including this chapter and regulations implementing this chapter, relevant provisions of the Bank Secrecy Act and the other federal and state laws pertaining to money laundering;

(d) Require the authorized delegate to remit and handle money and monetary value in accordance with the terms of the contract between the licensee and the authorized delegate;

(e) Impose a trust on money and monetary value net of fees received for money transmission for the benefit of the licensee;

(f) Require the authorized delegate to prepare and maintain records as required by this chapter or regulations implementing this chapter, or as reasonably requested by the director;

(g) Acknowledge that the authorized delegate consents to examination or investigation by the director;

(h) State that the licensee is subject to regulation by the director and that, as part of that regulation, the director may suspend or revoke an authorized delegate designation or require the licensee to terminate an authorized delegate designation; and

(i) Acknowledge receipt of the written policies and procedures required under subsection 2(a) of this section.

(5) If the licensee's license is suspended, revoked, surrendered, or expired, the licensee must, within five business days, provide documentation to the director that the licensee has notified all applicable authorized delegates of the licensee whose names are in a record filed with the director of the suspension, revocation, surrender, or expiration of a license. Upon suspension, revocation, surrender, or expiration of a license, applicable authorized delegates shall immediately cease to provide money transmission as an authorized delegate of the licensee.

(6) An authorized delegate of a licensee holds in trust for the benefit of the licensee all money net of fees received from money transmission. If any authorized delegate commingles any funds received from money transmission with any other funds or property owned or controlled by the authorized delegate, all commingled funds and other property shall be considered held in trust in favor of the licensee in an amount equal to the amount of money net of fees received from money transmission.

(7) An authorized delegate may not use a subdelegate to conduct money transmission on behalf of a licensee.

Source: SL 2024, ch 196, § 39.
S.D. Codified Laws § 51A-2-5 — SD Code / Title 51A / Chapter 2 / Section 51A-2-5
Deputy director--Appointment--Powers and duties
Status: in_force

The secretary of labor and regulation may appoint a deputy director who shall devote all of his time to the duties of the office.

During the absence or disqualification of the director or during a vacancy in such office, the deputy, as acting director, shall perform the duties of the director.

Source: SL 1909, ch 222, art 1, § 2; SL 1911, ch 256, § 2; SL 1915, ch 102, art. 1, § 2; SL 1917, ch 140, § 1; RC 1919, § 8918; SL 1921, ch 135; SL 1933, ch 56; SDC 1939, § 6.0207; SDCL § 51-2-2; SL 1969, ch 11, § 2.3; SL 1979, ch 322; SL 1988, ch 377, § 19; SDCL § 51-16-3; SL 2003, ch 272 (Ex. Ord. 03-1), § 24; SL 2011, ch 1 (Ex. Ord. 11-1 ), § 162, eff. Apr. 12, 2011.
S.D. Codified Laws § 51A-17-54 — SD Code / Title 51A / Chapter 17 / Section 51A-17-54
Director's authority
Status: in_force

(1) In order to carry out the purposes of this chapter, the director may, subject to the provisions of subdivisions 51A-17-55 (1) and (4):

(a) Enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory associations in order to improve efficiencies and reduce regulatory burden by standardizing methods or procedures, and sharing resources, records, or related information obtained under this chapter;

(b) Use, hire, contract, or employ analytical systems, methods, or software to examine or investigate any person subject to this chapter;

(c) Accept, from other state or federal government agencies or officials, licensing, examination, or investigation reports made by the other state or federal government agencies or officials; and

(d) Accept audit reports made by an independent certified public accountant or other qualified third-party auditor for an applicant or licensee and incorporate the audit report in any report of examination or investigation.

(2) The director has the broad administrative authority to administer, interpret, and enforce this chapter and to recover the cost of administering and enforcing this chapter by imposing and collecting proportionate and equitable fees and costs associated with applications, examinations, investigations, and other actions required to achieve the purpose of this chapter.

Source: SL 2024, ch 196, § 3.
S.D. Codified Laws § 51A-19-2 — SD Code / Title 51A / Chapter 19 / Section 51A-19-2
Reasonable belief of exploitation--Authorized actions
Status: in_force

If a financial institution, or an employee of a financial institution, reasonably believes, or has received information from a state agency or a law enforcement agency demonstrating that it is reasonable to believe financial exploitation of a consenting, senior, or vulnerable adult may have occurred, may have been attempted, is occurring, or is being attempted, the financial institution may:

(1) Delay or refuse a transaction with or involving the consenting, senior, or vulnerable adult;

(2) Delay or refuse to permit the withdrawal or disbursement of funds contained in the account of the consenting, senior, or vulnerable adult;

(3) Prevent a change in ownership of the account of a consenting, senior, or vulnerable adult;

(4) Prevent a transfer of funds from the account of the consenting, senior, or vulnerable adult to an account owned wholly or partially by another person;

(5) Refuse to comply with instructions given to the financial institution by an agent or a person acting for or with an agent under a power of attorney signed or purported to have been signed by the consenting, senior, or vulnerable adult; or

(6) Prevent the designation or change the designation of beneficiaries to receive any property, benefit, or contract rights for a consenting, senior, or vulnerable adult at death.

Source: SL 2026, ch 194, § 2.
S.D. Codified Laws § 51A-6A-62 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-62
Depositing securities into federal reserve bank
Status: in_force

Any trust company when acting as fiduciary, and any trust company when holding securities as custodian for a fiduciary, may deposit, or arrange for the deposit, with the federal reserve bank in its district, of any securities the principal and interest of which the United States or any department, agency, or instrumentality of the United States has agreed to pay, or has guaranteed payment, to be credited to one or more accounts on the books of the federal reserve bank in the name of the trust company. Any account used for this purpose shall be designated as a fiduciary or safekeeping account, and other similar securities may be credited to the account. A trust company depositing securities with a federal reserve bank is subject to any rules with respect to the making and maintenance of the deposits as the director may promulgate pursuant to chapter 1-26 . The records of the trust company shall always show the ownership of the securities held in the account.

Source: SL 1995, ch 268, § 60.
S.D. Codified Laws § 51A-6A-47 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-47
Acquisition of trust company--Notice to director--Approval--Order of disapproval--Hearing
Status: in_force

A person acquiring control through direct or indirect ownership by an owner or an affiliated group of owners shall give the director at least sixty days prior written notice of any proposed trust company acquisition. If the director does not issue an order disapproving the proposed acquisition within that time or extend the period during which a disapproval may be issued, the proposed acquisition is approved. The period for disapproval shall be thirty days after notice is received by the director and may be further extended only if the director determines that any acquiring person has not furnished all the information required under § 51A-6A-48 or if in the director's judgment, any material information submitted is substantially inaccurate. An acquisition may be made prior to expiration of the disapproval period if the director issues written notice of the director's intent not to disapprove the action.

If the director disapproves an acquisition, the director shall serve the acquiring person with an order of disapproval. The order shall provide a statement of the basis for the disapproval. Within thirty days after service of an order of disapproval, the acquiring person may request a hearing on the proposed acquisition with the commission. Upon receipt of a timely request, the commission shall conduct a hearing in accordance with the provisions of chapter 1-26 . Any disapproval by the commission of a proposed acquisition is subject to review in accordance with chapter 1-26 .

Actual expenses incurred by the director or commission in carrying out any investigation that may be necessary or required by statute shall be paid by the person submitting the proposed acquisition.

Source: SL 1995, ch 268, § 45; SL 2013, ch 239, § 6.
S.D. Codified Laws § 51A-9-5 — SD Code / Title 51A / Chapter 9 / Section 51A-9-5
Examination of bank services
Status: in_force

Any bank services performed by a bank service corporation for any bank, whether on or off the premises of such bank, shall, as to such bank, be subject to regulation and examination to the same extent as if such bank services were performed by the bank itself on the premises of such bank.

Source: SL 1963, ch 29, § 6; SDCL, § 51-9-4; SL 1969, ch 11, § 7.4; SDCL, § 51-21-4.
S.D. Codified Laws § 51A-5-25 — SD Code / Title 51A / Chapter 5 / Section 51A-5-25
Approval or ratification of acceptance or relinquishment of fiduciary accounts by board of directors or committee
Status: in_force

No bank shall accept or voluntarily relinquish a fiduciary account without the approval or ratification of the board of directors, or a committee of officers or directors designated by the board for that purpose, but the board or the committee may prescribe general rules governing acceptance or relinquishment of fiduciary accounts, and action taken by an officer in accordance with these rules is sufficient approval.

Source: SL 1969, ch 11, § 5.10; SDCL, § 51-19-11.
S.D. Codified Laws § 51A-17-66 — SD Code / Title 51A / Chapter 17 / Section 51A-17-66
Complete application--Investigation
Status: in_force

When an application is filed and considered complete under §§ 51A-17-64 and 51A-17-65 , the director must investigate the applicant's financial condition and responsibility, financial and business experience, character, and general fitness. The director may conduct an on-site investigation of the applicant, the reasonable cost of which the applicant must pay. The director must issue a license to an applicant under §§ 51A-17-64 to 51A-17-69 , inclusive, if the director finds that all of the following conditions have been fulfilled:

(1) The applicant has complied with §§ 51A-17-61 to 51A-17-63 , inclusive; and

(2) The financial condition and responsibility, financial and business experience, competence, character, and general fitness of the applicant; and the competence, experience, character, and general fitness of the key individuals and persons in control of the applicant indicate that it is in the interest of the public to permit the applicant to engage in money transmission.

Source: SL 2024, ch 196, § 15.
S.D. Codified Laws § 51A-2-24 — SD Code / Title 51A / Chapter 2 / Section 51A-2-24
Accounting practices--Valuation of assets--Required practices to protect loans
Status: in_force

The director may require any bank:

(1) To maintain its accounts in a prescribed manner having regard for the size of the bank;

(2) To observe methods and standards for determining the value of various types of assets;

(3) To charge off the whole or part of any asset which could not then be lawfully acquired;

(4) To write down an asset to its market value;

(5) To record liens and other interests in property;

(6) To obtain a financial statement and adequate credit information from borrowers;

(7) To require borrowers to obtain insurance against damage to real or personal property taken as security;

(8) To require borrowers to search or obtain insurance of title to real estate or chattels taken as security;

(9) To maintain adequate insurance against such other risks relating to the bank premises, its deposits, vaults and offices as he may determine to be necessary and appropriate for the protection of deposits and the public.

Source: SL 1915, ch 102, art 2, § 21; RC 1919, § 8968; SDC 1939, § 6.0434; SDCL, § 51-12-1; SL 1969, ch 11, § 2.17 (3); SL 1970, ch 265, § 11; SL 1988, ch 377, § 40; SDCL, § 51-16-26.
S.D. Codified Laws § 51A-15-7 — SD Code / Title 51A / Chapter 15 / Section 51A-15-7
Distribution of assets after discharge of obligations on voluntary liquidation--Disposition of unclaimed distributions
Status: in_force

Any assets remaining after the discharge of all obligations shall be distributed to the stockholders in accordance with their respective interests. No such distribution shall be made before:

(1) All claims of depositors and creditors have been paid, or, in the case of any disputed claim, the bank has transmitted to the director a sum adequate to meet any liability that may be judicially determined;

(2) Any funds payable to a depositor or creditor and unclaimed have been transmitted to the state treasurer; and

(3) Approved by the director.

Any unclaimed distribution to a stockholder or depositor shall be held until ninety days after the final distribution and then transmitted to the state treasurer for disposition pursuant to chapter 43-41B .

Source: SL 1969, ch 11, § 13.2 (6); SL 1970, ch 265, § 63; SL 1974, ch 301, § 4; SDCL, § 51-27-7.
S.D. Codified Laws § 51A-18-7 — SD Code / Title 51A / Chapter 18 / Section 51A-18-7
User refund for fraud--Conditions--Deadline to refund
Status: in_force

A licensee shall issue a full refund to any user that:

(1) Is the victim of a fraudulent virtual currency transaction involving a virtual currency kiosk operated by the licensee;

(2) Within ninety days after the last occurrence of fraud or of becoming aware of the fraud, informs the licensee of all fraudulent transactions at issue; and

(3) Within one hundred twenty days after contacting the licensee, submits to the licensee a copy of any police report or government agency report or a sworn statement detailing all known fraudulent activity.

Within seventy-two hours of the user's satisfaction of all conditions in this section, the licensee must issue a full refund to the user, including all charges paid by the user in connection with the fraudulent transaction.

Source: SL 2026, ch 193, § 7.
S.D. Codified Laws § 51A-6A-36 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-36
Service of notice of charges--Contents of notice--Temporary cease and desist order
Status: in_force

If the director determines that any trust company is engaging or has engaged, or the director has reasonable cause to believe that the trust company is about to engage, in an unsafe or unsound practice in conducting the business of the trust company, or if the director determines that any trust company is violating or has violated, or the director has reasonable cause to believe that the trust company is about to violate a law, rule, or order of the director or the commission, the director may issue and serve upon the trust company a notice of charges. The notice shall contain a statement of the facts constituting any alleged unsafe or unsound practice or any alleged violation and shall state the time and place at which a hearing will be held by the commission to determine whether an order to cease and desist should be issued by the commission against the trust company. The hearing shall be fixed for a date not earlier than thirty days nor later than sixty days after service of the notice. The hearing shall be conducted pursuant to chapter 1-26 . Any determination by the director or the commission under this section is subject to review under chapter 1-26 .

Unless the trust company appears at the hearing, the trust company is considered to have consented to the issuance of the cease and desist order. In the event of such consent, or if upon the record made at the hearing, the commission finds that any unsafe or unsound practice or violation specified in the notice of charges has been established, the commission may issue and serve upon the trust company an order to cease and desist from any such practice or violation. The order may, by provisions which may be mandatory or otherwise, require the trust company and its board members, officers, employees, and agents to cease and desist from the practice or violation and to take affirmative action to correct the conditions resulting from the practice or violation. A cease and desist order becomes effective at the time specified in the order, and remains effective and enforceable as provided in the order, except to such extent as it is stayed, modified, terminated, or set aside by action of the commission.

If the director determines that any unsafe or unsound practice or violation specified in the notice of charges served upon the trust company, or the continuation of the practice or violation, is likely to cause insolvency or substantial dissipation of assets or earnings of the trust company, or is likely to otherwise seriously prejudice the interests of its customers, the director may issue a temporary order requiring the trust company to cease and desist from the practice or violation. The order is effective upon service upon the trust company and shall remain effective and enforceable pending the completion of the proceedings pursuant to the notice and until the commission dismisses the charges specified in the notice, or if a cease and desist order is issued against the trust company, until the effective date of the order.

Source: SL 1995, ch 268, § 34.
S.D. Codified Laws § 51A-6A-19.2 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-19.2
Investments pledged to division for security of trust creditors of trust company--Amount--Income from investments--Pledge increase--Hearing
Status: in_force

Before any trust company authorized by this title transacts any trust company business, the trust company shall pledge to the division, and maintain at all times, investments for the security of the trust creditors of the trust company, including as a priority claim costs incurred by the division in a receivership or liquidation of the trust company if the trust company should fail. The director shall determine the amount of the pledge in an amount deemed appropriate to defray the costs incurred by the division in a receivership or liquidation of the trust company, but the amount of the pledge may not be less than a market value of one hundred thousand dollars, nor exceed five hundred thousand dollars for a private trust company or one million dollars for a public trust company. Notwithstanding the maximum pledge amount allowed under this section, the director may require a public trust company to maintain a pledge of greater than one million dollars if the director finds that an increased pledge amount is required based upon consideration of the factors in § 51A-6A-19.1 . The director may authorize a reduction of any previously established pledge, provided that no pledge may be less than a market value of one hundred thousand dollars. All investments pledged to the division shall be held at a depository institution in this state and all costs associated with pledging and holding the investments are the responsibility of the trust company.

The investments pledged to the division shall be of the same nature and quality as those required for public funds under §§ 4-5-6 , 4-5-6.1 , and 4-5-6.2 .

The commission may promulgate rules, pursuant to chapter 1-26 , to establish additional investment guidelines or investment options for purposes of the pledge required by this section.

In the event of a receivership of a trust company, the director may, without regard to priorities, preferences, or adverse claims, reduce the pledged investments to cash and, as soon as practicable, utilize the cash to defray the costs associated with the receivership.

Income from the investments pledged shall belong to and be paid to the trust company so long as the trust company continues to conduct its business in the ordinary course and so long as authorized by the director.

If the director requires a trust company to increase its pledge, the director shall provide the trust company with notice and an order setting forth the amount of the pledge. The proposed effective date of the order setting forth the amount of the pledge shall be stated in the order as on or after the thirty-first day after the date of the order. Unless the trust company requests a hearing before the commission in writing before the proposed effective date of the order, the order is effective and final on the proposed effective date. Any hearing before the commission shall be held pursuant to chapter 1-26 .

Source: SL 2010, ch 232, § 21; SL 2012, ch 233, § 1; SL 2015, ch 240, § 5; SL 2019, ch 205, § 2.
S.D. Codified Laws § 51A-4-12 — SD Code / Title 51A / Chapter 4 / Section 51A-4-12
Checks settled at par--Payment from reserve deposits
Status: in_force

Except as to any check sent to it as a special collection item, no bank shall settle any check drawn on it otherwise than at par. Any check bearing an out - of - town endorsement shall be, at the option of the drawee bank, payable by draft drawn on the reserve deposits of the drawee bank when any such check is presented by or through any bank, banker, trust company, federal reserve bank, post office, express company, or collective agency, or agents of any of the foregoing.

Source: SL 1920 (SS), ch 31, § 1; SDC 1939, § 6.0421; SL 1947, ch 26; SDCL, § 51-6-8; SL 1968, ch 7, § 1; SL 1969, ch 11, § 4.8; SDCL, § 51-18-8.
S.D. Codified Laws § 51A-1-2 — SD Code / Title 51A / Chapter 1 / Section 51A-1-2
Definition of terms
Status: in_force

Terms used in this title mean:

(1) "Articles of incorporation," articles of incorporation for a bank organized by incorporators as a corporation pursuant to chapter 47-1A and articles of organization for a bank organized by organizers or members as a limited liability company pursuant to chapter 47-34A ;

(2) "Bank," any corporation or limited liability company, organized pursuant to chapter 47-34A , authorized under this title to engage in the business of banking or in the combined business of a bank and trust company or in the combined business of a bank with trust powers;

(3) "Bank holding company," a bank holding company as defined in 12 U.S.C. 1841, as amended as of January 1, 1988;

(4) "Banking," the business of receiving deposits, discounting commercial paper, or buying and selling exchange, and any other activity authorized by this title;

(5) "Banking day," that part of any day on which a bank is open to the public for carrying on substantially all of its banking functions;

(6) "Board of directors," board of directors for a bank organized by incorporators as a corporation pursuant to chapter 47-1A and a manager for a manager-managed bank or a member for a member-managed bank organized as a limited liability company pursuant to chapter 47-34A ;

(7) "Branch bank," a branch place of business maintained by a bank to conduct its banking business;

(8) "By-laws," by-laws for a bank organized by incorporators as a corporation pursuant to chapter 47-1A and operating agreement for a bank organized by organizers or members as a limited liability company pursuant to chapter 47-34A ;

(9) "Commission," the State Banking Commission;

(10) "Debt cancellation contract," a loan term or contractual arrangement modifying loan terms under which a bank agrees to cancel all or part of a customer's obligation to repay an extension of credit from the bank upon the occurrence of a specified event. The contract may be separate from or a part of other loan documents. The term, debt cancellation contract, does not include loan payment deferral arrangements in which the triggering event is the borrower's unilateral election to defer repayment, or the bank's unilateral decision to allow a deferral of repayment;

(11) "Debt suspension contract," a loan term or contractual arrangement modifying loan terms under which a bank agrees to suspend all or part of a customer's obligation to repay an extension of credit from the bank upon the occurrence of a specified event. The contract may be separate from or a part of other loan documents. The term, debt suspension contract, does not include loan payment deferral arrangements in which the triggering event is the borrower's unilateral election to defer repayment, or the bank's unilateral decision to allow a deferral of repayment.

(12) "Deputy director," the deputy director of the Division of Banking;

(13) "Director," the director of the Division of Banking;

(14) "Dividends," distributions for a corporation organized pursuant to chapter 47-1A and distributions for a limited liability company organized pursuant to chapter 47-34A .

(15) "Division," the Division of Banking of the Department of Labor and Regulation;

(16) "Executive officer," every officer who participates or has authority to participate, otherwise than in the capacity of a director, in major policy-making functions of the bank, regardless of whether the officer has an official title or whether the officer's title contains a designation of assistant and regardless of whether the officer is serving without salary or other compensation. The chairman of the board, the president, every vice-president, the cashier, secretary, and treasurer of a bank are assumed to be executive officers, unless, by resolution of the board of directors or by the bank's bylaws, any such officer is excluded from participation in major policy-making functions, otherwise than in the capacity of a director of the bank, and the officer does not actually participate therein;

(17) "Fully defeased bonds or notes," obligations issued by any state, or municipal or school district subdivision the repayment of which has been irrevocably guaranteed by other securities which securities are issued by or are fully guaranteed by the United States Government;

(18) "Loan production office," an office which is apart from its main bank or branch which is staffed or controlled by a bank and is where loans are solicited but are not approved or disbursed;

(19) "Mobile branch bank," a branch bank that does not have a single, permanent site and uses a vehicle that travels to various locations to enable the public to conduct banking business. A mobile branch bank may serve defined locations on a regular schedule or may serve a defined area at varying times and locations;

(20) "National bank," any corporation organized pursuant to 12 U.S.C. § 21, as amended as of January 1, 1990;

(21) "Stock," shares for a bank organized by incorporators as a corporation pursuant to chapter 47-1A and member equity for a bank organized as a limited liability company pursuant to chapter 47-34A ;

(22) "Stockholder," a shareholder of a bank organized by incorporators as a corporation pursuant to chapter 47-1A and a member for a bank organized by organizers or members as a member as a limited liability company pursuant to chapter 47-34A .

Source: SDC 1939, § 6.0101; SDCL § 51-1-1; SL 1969, ch 11, § 1.1; SL 1978, ch 352, § 3; SL 1979, ch 321, § 1; SL 1981, ch 346, § 1; SL 1984, ch 314, § 1; SL 1986, ch 399, § 2; SL 1988, ch 377, § 1; SL 1990, ch 379; SDCL § 51-15-1; SL 1995, ch 268, § 63; SL 1998, ch 278, § 1; SL 2004, ch 17, § 298; SL 2004, ch 289, §§ 1, 6; SL 2004, ch 290, § 1; SL 2008, ch 252, § 1; SL 2011, ch 1 (Ex. Ord. 11-1 ), § 162, eff. Apr. 12, 2011; SL 2018, ch 270, § 1.
S.D. Codified Laws § 51A-3-21 — SD Code / Title 51A / Chapter 3 / Section 51A-3-21
Net profits defined
Status: in_force

Net profits shall be equal to the net income or loss as reported by a bank in its reports of condition and income. In computing its net profits under this section, a bank may not add its provision for loan and lease losses to, nor deduct net charge offs from, its reported net income.

Source: SDCL, § 51-15-1(9); SL 1988, ch 377, § 1; SDCL, § 51-17-20.6; SL 1991, ch 390, § 3.
S.D. Codified Laws § 51A-17-53 — SD Code / Title 51A / Chapter 17 / Section 51A-17-53
Exemptions to chapter
Status: in_force

This chapter does not apply to:

(1) An operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons exempted by this section or licensees, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers, or similar funds transfers;

(2) A person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than the money transmission itself, provided to the payor by the payee, provided that:

(a) There exists a written agreement between the payee and the agent directing the agent to collect and process payments from payors on the payee's behalf;

(b) The payee holds the agent out to the public as accepting payments for goods or services on the payee's behalf; and

(c) Payment for the goods and services is treated as received by the payee upon receipt by the agent so that the payor's obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the funds to the payee;

(3) A person that acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender, and the sender's designated recipient, provided that the entity:

(a) Is properly licensed or exempt from licensing requirements under this chapter;

(b) Provides a receipt, electronic record, or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction; and

(c) Bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the funds to the sender's designated recipient;

(4) The United States, a department, agency, or instrumentality thereof, or its agent;

(5) Money transmission by the United States Postal Service or by an agent of the United States Postal Service;

(6) A state, county, city, or any other governmental agency or governmental subdivision or instrumentality of a state, or its agent;

(7) A federally insured depository financial institution, bank holding company, office of an international banking corporation, foreign bank that establishes a federal branch pursuant to the International Bank Act, 12 U.S.C. § 3102 (January 1, 2024), corporation organized pursuant to the Bank Service Corporation Act, 12 U.S.C. §§ 1861-1867 (January 1, 2024), or corporation organized under the Edge Act, 12 U.S.C. §§ 611-633 (January 1, 2024);

(8) Electronic funds transfer of governmental benefits for a federal, state, county, or governmental agency by a contractor on behalf of the United States or a department, agency, or instrumentality thereof, or on behalf of a state or governmental subdivision, agency, or instrumentality thereof;

(9) A board of trade designated as a contract market under the federal Commodity Exchange Act, 7 U.S.C. §§ 1-25 (January 1, 2024), or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for the board;

(10) A registered futures commission merchant under the federal commodities laws to the extent of its operation as a merchant;

(11) A person registered as a securities broker-dealer under federal or state securities laws to the extent of its operation as a broker-dealer;

(12) An individual employed by a licensee, authorized delegate, or any person exempted from the licensing requirements of this chapter when acting within the scope of employment and under the supervision of the licensee, authorized delegate, or exempted person as an employee and not as an independent contractor;

(13) A person expressly appointed as a third-party service provider to or agent of an entity exempt under subdivision (7) of this section, solely to the extent that:

(a) The service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform; and

(b) The exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations upon receipt of the purchaser's or holder's money or monetary value by the service provider or agent;

(14) A person exempt by regulation or order if the director finds the exemption to be in the public interest and that the regulation of the person is not necessary for the purposes of this chapter;

(15) A South Dakota chartered trust company; and

(16) A person appointed as an agent of a payor for purposes of providing payroll processing services for which the agent would otherwise need to be licensed, provided all of the following apply:

(a) There is a written agreement between the payor and the agent that directs the agent to provide payroll processing services on the payor’s behalf;

(b) The payor holds the agent out to employees and other payees as providing payroll processing services on the payor’s behalf; and

(c) The payor’s obligation to a payee, including an employee or any other party entitled to receive funds via the payroll processing services provided by the agent, shall not be extinguished if the agent fails to remit the funds to the payee.

The director may require that any person claiming to be exempt from licensing pursuant to this section provide information and documentation to the director demonstrating that it qualifies for any claimed exemption.

Source: SL 2024, ch 196, § 2.
S.D. Codified Laws § 51A-1-19 — SD Code / Title 51A / Chapter 1 / Section 51A-1-19
Central bank digital currency--Public transaction prohibited
Status: in_force

Neither the state nor any of its agencies or subdivisions may accept a central bank digital currency, whether foreign or domestic, as payment for taxes, fees, tuition, admission, the settlement of any account or debt, or any other purpose.

For the purposes of this chapter, the term "central bank digital currency" means a national digital currency issued by a central bank that is widely available to the general public.

Source: SL 2024, ch 195, § 1.
S.D. Codified Laws § 51A-17-98 — SD Code / Title 51A / Chapter 17 / Section 51A-17-98
Payroll processing services requirements
Status: in_force

(1) A licensee that provides payroll processing services must:

(a) Issue reports to clients detailing client payroll obligations in advance of the payroll funds being deducted from an account; and

(b) Make available worker paystubs or an equivalent statement to workers.

(2) Subdivision (1) of this section does not apply to a licensee providing payroll processing services where the licensee’s client designates the intended recipients to the licensee and is responsible for providing the disclosures required by subsection 1(b) of this section.

Source: SL 2024, ch 196, § 47.
S.D. Codified Laws § 51A-10-5 — SD Code / Title 51A / Chapter 10 / Section 51A-10-5
Tax liability on payments to survivors of deposits in name of two or more persons or in trust for another
Status: in_force

No bank so paying any such survivor or survivors under §§ 51A-10-3 and 51A-10-4 is liable for any estate, inheritance, or succession taxes due this state.

Source: SL 1969, ch 11, § 8.6; SL 1970, ch 265, § 44; SDCL, § 51-22-7; SL 1992, ch 88, § 13; SL 1993, ch 94, § 7.
S.D. Codified Laws § 51A-10-1 — SD Code / Title 51A / Chapter 10 / Section 51A-10-1
"Deposit" or "deposits" defined
Status: in_force

The word "deposit" or "deposits" shall be construed to be the unpaid balance of money or its equivalent, including "deposits subject to check"; "dividends unpaid"; "savings deposits"; "special deposits"; "trust deposits"; "certified checks" and "cashier's checks outstanding"; "demand certificates of deposit"; "time certificates of deposit"; "collections made but not remitted"; and "due to other banks," on which the bank is primarily liable except "overdrafts on correspondents"; or other terms of like import. If any bank has borrowed money on its bills payable, pursuant to a contract which grants permission to the loaning bank to appropriate and to apply any credit balance which the books of the loaning bank show to be due or owing to the borrowing bank, to be credited on such bills payable without regard to the date of maturity thereof, the money received on such bills payable by such borrowing banks shall be deemed "deposits."

Source: SL 1915, ch 102, art 2, § 30; RC 1919, § 8977; SDC 1939, § 6.0412; SDCL, § 51-10-1; SL 1969, ch 11, § 8.1; SL 1970, ch 265, § 42; SL 1988, ch 377, § 134; SDCL, § 51-22-1.
S.D. Codified Laws § 51A-12-13 — SD Code / Title 51A / Chapter 12 / Section 51A-12-13
Collection of certain credit service charges by bank
Status: in_force

Notwithstanding any other provisions of law, a bank may contract for and collect the following credit service charges in connection with the extensions of credit made pursuant to § 51A-12-12 , in an amount agreed to by the bank and the debtor either initially or pursuant to a change in terms authorized in § 54-11-12 :

(1) Membership fees, whether assessed on an annual or other periodic basis;

(2) Transaction fees;

(3) Interest charges permitted by § 54-3-1.1 ;

(4) Charges for exceeding a designated credit limit;

(5) Charges for stopping payment;

(6) Charges for each return of a dishonored check, negotiable order of withdrawal or draft; and

(7) Other charges made in connection with the revolving loan or charge account arrangement.

All of the fees and charges permitted by this section shall be deemed interest. No fee, expense or other charge whatsoever may be taken or received by a bank under a revolving loan or charge account arrangement except as provided in this section.

Source: SL 1987, ch 360, § 2; SDCL, § 51-24-12.1; SL 2021, ch 204, § 6.
S.D. Codified Laws § 51A-4-9 — SD Code / Title 51A / Chapter 4 / Section 51A-4-9
Real property authorized to be held by bank--Maximum book value of premises
Status: in_force

Except as provided in §§ 51A-4-10 , a bank may lease, purchase, hold, and convey in its own name, or through investment in a corporation organized solely to lease such property to it, only the following real property:

(1) That which it occupies or intends to occupy for the transaction of its business or which it partly so occupies and partly rents or leases to others;

(2) That which is used for accommodation in the transaction of the bank's business, including parking, storage and preservation of records, and data processing facilities; or

(3) That which is used for housing or recreation accommodations for attracting and retaining employees.

All such accommodations shall be of a reasonable nature.

The book value of a bank's premises may not exceed in the aggregate one hundred percent of the bank's capital stock and surplus. However, the director may authorize a larger investment, upon formal application and after an investigation, if the sound conduct of banking will not be adversely affected by the larger investment. For the purposes of this section, book value includes those amounts which are to be reported as premises and fixed assets according to the instructions for consolidated reports of condition filed with the division.

Source: SDC 1939, §§ 6.0410 (1), 6.0430; SL 1964, ch 12; SDCL §§ 51-11-17, 51-11-18; SL 1969, ch 11, § 4.4; SL 1981, ch 346, § 29; SL 1986, ch 400, § 13; SL 1988, ch 377, § 84; SDCL § 51-18-4; SL 1991, ch 390, § 5; SL 1999, ch 235, § 1; SL 2012, ch 252, § 13; SL 2020, ch 4, § 27.
S.D. Codified Laws § 51A-6A-29.1 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-29.1
Permissible business of trust companies
Status: in_force

A trust company may only carry on a trust company business, as provided in § 51A-6A-29 , and such business as is incidental thereto.

Source: SL 2021, ch 203, § 30.
S.D. Codified Laws § 51A-3-24 — SD Code / Title 51A / Chapter 3 / Section 51A-3-24
Reporting transfers of stock
Status: in_force

All transfers of shares of bank stock in excess of five percent of the voting stock of a bank or of its parent holding company shall be immediately reported to the director. The transfer of such shares is not valid against a bank until recorded in the transfer books, but none may be recorded while the bank is subject to an order of the director to make good an impairment of capital. Any transfer shall be reported to the director if, after the transfer, the acquiring shareholder owns, directly or indirectly, twenty - five percent or more of the common stock of a bank or bank holding company unless notice of such fact had previously been reported to the director.

Source: SL 1909, ch 222, art 2, § 43; SL 1911, ch 255, § 22; SL 1915, ch 102, art 2, § 47; RC 1919, §§ 8995, 9052; SDC 1939, § 6.0310; SDCL, § 51-4-16; SL 1969, ch 11, § 3.21; SL 1981, ch 346, § 25; SL 1988, ch 377, § 69; SDCL, § 51-17-23.
S.D. Codified Laws § 51A-6A-20 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-20
Payment of subscriptions--Reduction of common stock
Status: in_force

All subscriptions to the stock or ownership units shall be paid in cash. If a trust company in corporate form reduces its common stock and issues preferred stock in lieu of the reduction, it may reduce the par value of the common stock in the proportion that the total amount of capital stock is reduced, but when the preferred stock is retired the par value of the common shares shall be restored.

Source: SL 1995, ch 268, § 18; SL 2012, ch 252, § 17.
S.D. Codified Laws § 51A-6A-64 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-64
Common trust funds and collective investment funds
Status: in_force

Any trust company qualified to act as a fiduciary in this state may establish common trust funds or collective investment funds for the purpose of furnishing investments to itself as fiduciary, or to itself and others, as co-fiduciaries. Any trust company qualified to act as fiduciary in this state may, as such fiduciary or co-fiduciary, invest funds that it lawfully holds for investment in the common trust funds or collective investment funds, if the investment is not prohibited by the instrument, judgment, decree, or order creating the fiduciary relationship. Any common trust fund or collective investment funds shall be established and maintained according to the provisions of chapter 55-6 .

Source: SL 1995, ch 268, § 62; SL 2011, ch 212, § 22; SL 2014, ch 226, § 2.
S.D. Codified Laws § 51A-6A-34 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-34
Annual report of trust company to director--Form of report--Request for additional reports
Status: in_force

Each trust company shall make at least one report to the director during each year, at a time determined by the director. The director may require additional reports from each trust company if the director considers it advisable. The form of all the reports shall be prescribed by the director. If the director considers it necessary, the director may call upon any trust company for a report of its condition upon any given day. A copy of each request made by the director for a statement from all trust companies doing business under this chapter shall be mailed to each trust company. The copy of the request shall be considered to be legal notice to a trust company.

Source: SL 1995, ch 268, § 32.
S.D. Codified Laws § 51A-14-1 — SD Code / Title 51A / Chapter 14 / Section 51A-14-1
Merger or consolidation of banks
Status: in_force

A bank authorized under this title may merge or consolidate with another state bank, national bank or savings and loan association organized pursuant to 12 U.S.C. § 1464 as amended as of January 1, 1990. The provisions of §§ 51A-2-16 and 51A-3-7 to 51A-3-12 , inclusive, govern applications for mergers and consolidations.

Source: SL 1909, ch 222, art 2, § 24; SL 1911, ch 255, § 31; SL 1915, ch 102, art 2, § 27; RC 1919, §§ 8974, 9061; SDC 1939, § 6.0404; SDCL § 51-13-1; SL 1969, ch 11, § 12.1; SL 1979, ch 325; SL 1981, ch 346, § 64; SL 1988, ch 377, § 156; SL 1990, ch 383, § 1; SDCL § 51-26-1; SL 2012, ch 252, § 22.
S.D. Codified Laws § 51A-6A-9 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-9
Starting date of trust company existence--Commencement of business
Status: in_force

The existence of any trust company shall date from the filing of its articles from which time it shall have and may exercise the incidental powers conferred by law upon corporations or limited liability companies, as applicable. However, no trust company may transact any business except the election of officers, the taking and approving of their official bonds, the receipts of payment upon stock subscriptions, and other business incidental to its organization, until it has secured the required approval and the authorization of the director to commence business.

Source: SL 1995, ch 268, § 6; SL 2008, ch 258, § 6.
S.D. Codified Laws § 51A-2-34 — SD Code / Title 51A / Chapter 2 / Section 51A-2-34
Interest in bank by division officers or employees prohibited--Relinquishment of interest by director or deputy for term of office
Status: in_force

No officer or employee of the division may be an officer, director, trustee, attorney, owner, shareholder or partner in any state bank, nor receive any payment or gratuity directly or indirectly from that organization, nor be indebted to any state bank, nor engage in negotiation of loans for others with any such bank.

The director or the deputy director shall have a reasonable length of time after his appointment to sell or to relinquish any interest he owns in a state - chartered bank in this state by transferring that interest to a nonrelated trustee for the tenure of his office.

Source: SL 1909, ch 222, art 1, § 2; SL 1911, ch 256, § 2; SL 1915, ch 102, art 1, § 2; SL 1917, ch 140, § 1; RC 1919, § 8918; SL 1921, ch 135; SL 1925, ch 102, § 2; SL 1927, ch 56; SL 1933, ch 56; SDC 1939, § 6.0210; SDCL, §§ 51-2-26, 51-2-27; SL 1969, ch 11, § 2.24; SL 1970, ch 265, § 13; SL 1983, ch 355; SL 1988, ch 377, § 49; SDCL, § 51-16-34.
S.D. Codified Laws § 51A-7-16 — SD Code / Title 51A / Chapter 7 / Section 51A-7-16
Restrictions on branches by other states
Status: in_force

To the extent another state imposes a restriction on the ability of a South Dakota bank to establish, acquire, or retain a branch in that state, the other state's restriction shall apply to the establishment, acquisition, or retention of a branch in South Dakota by a bank from that state.

Source: SL 1996, ch 280, § 4; SL 2008, ch 252, § 37.
S.D. Codified Laws § 51A-6A-19.1 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-19.1
Additional capital requirements--Safety and soundness factors to be considered--Effective date of order--Hearing
Status: in_force

The director may require additional capital for an existing trust company if the director finds the condition and operations of an existing trust company requires additional capital consistent with the safety and soundness of the trust company. The safety and soundness factors to be considered by the director in the exercise of such discretion include:

(1) The nature and type of business conducted;

(2) The nature and degree of liquidity in assets held in a corporate capacity;

(3) The amount of fiduciary assets under management or administration;

(4) The type of fiduciary assets held and the depository of such assets;

(5) The complexity of fiduciary duties and degree of discretion undertaken;

(6) The competence and experience of management;

(7) The extent and adequacy of internal controls;

(8) The presence or absence of annual unqualified audits by an independent certified public accountant;

(9) The reasonableness of business plans for retaining or acquiring additional capital;

(10) The existence and adequacy of insurance obtained or held by the trust company for the purpose of protecting its clients, beneficiaries, and grantors; and

(11) Any other factor deemed relevant by the director.

The proposed effective date of an order requiring an existing trust company to increase its capital must be stated in the order as on or after the thirty-first day after the date of the proposed order. Unless the trust company requests a hearing before the commission in writing before the effective date of the proposed order, the order becomes effective and is final. Any hearing before the commission shall be held pursuant to chapter 1-26 .

Source: SL 2010, ch 232, § 20.
S.D. Codified Laws § 51A-2-25 — SD Code / Title 51A / Chapter 2 / Section 51A-2-25
Temporary order of director against unsound practice
Status: in_force

The director may issue a temporary order having force until the next regular meeting of the commission, or special meeting of the commission if requested by the director or by a member of the commission, requiring that any person cease and desist from engaging in any unsound or unlawful banking practice.

Source: SL 1969, ch 11, § 2.17 (4); SL 1970, ch 265, § 12; SL 1981, ch 346, § 10; SL 1988, ch 377, § 41; SDCL § 51-16-27; SL 2008, ch 252, § 9.
S.D. Codified Laws § 51A-17-68 — SD Code / Title 51A / Chapter 17 / Section 51A-17-68
Written denial of decision--Appeal
Status: in_force

The director shall issue a formal written notice of the denial of a license application within thirty days of the decision to deny the application. The director shall set forth in the notice of denial the specific reasons for the denial of the application. An applicant whose application is denied by the director under this section may appeal within thirty days after receipt of the written notice of the denial pursuant to chapter 1-26 .

Source: SL 2024, ch 196, § 17.
S.D. Codified Laws § 51A-17-52 — SD Code / Title 51A / Chapter 17 / Section 51A-17-52
Definitions
Status: in_force

Terms used in this chapter mean:

(1) "Acting in concert," persons knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement;

(2) "Authorized delegate," a person a licensee designates to engage in money transmission on behalf of the licensee;

(3) "Average daily money transmission liability," the amount of the licensee's outstanding money transmission obligations in this state at the end of each day in a given period of time, added together, and divided by the total number of days in the given period of time. For purposes of calculating average daily money transmission liability under this chapter for any licensee required to do so, the given period of time is the quarters ending March thirty-first, June thirtieth, September thirtieth, and December thirty-first;

(4) "Bank Secrecy Act," the Bank Secrecy Act, 31 U.S.C. § 5311, et seq. and its implementing regulations (January 1, 2024);

(5) "Closed loop stored value," stored value that is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value;

(6) "Control:"

(a) The power to vote, directly or indirectly, at least twenty-five percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee; the power to elect or appoint a majority of key individuals or executive officers, managers, directors, trustees; other persons exercising managerial authority of a person in control of a licensee; or the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee;

(b) A person is presumed to exercise a controlling influence when the person holds the power to vote, directly or indirectly, at least ten percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee. A person presumed to exercise a controlling influence as defined by this section can rebut the presumption of control if the person is a passive investor;

(c) For purposes of determining the percentage of a person controlled by any other person, the person's interest shall be aggregated with the interest of any other immediate family member, including the person's spouse, parents, children, siblings, mothers- and fathers-in-law, sons- and daughters-in-law, brothers- and sisters-in-law, and any other person who shares the person's home;

(7) "Eligible rating," a credit rating of any of the three highest rating categories provided by an eligible rating service, whereby each category may include rating category modifiers, such as "plus" or "minus" for S&P or the equivalent for any other eligible rating service. Long-term credit ratings are deemed eligible if the rating is equal to A- or higher by S&P or the equivalent from any other eligible rating service. Short-term credit ratings are deemed eligible if the rating is equal to or higher than A-2 or SP-2 by S&P or the equivalent from any other eligible rating service. In the event that ratings differ among eligible rating services, the highest rating shall apply when determining whether a security bears an eligible rating;

(8) "Eligible rating service," any nationally recognized statistical rating organization as defined by the U.S. Securities and Exchange Commission, and any other organization designated by the director by rule or order;

(9) "Federally insured depository financial institution," a bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank, or industrial loan company organized under the laws of the United States or any state of the United States, when the bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank, or industrial loan company has federally insured deposits;

(10) "In this state," at a physical location within this state for a transaction requested in person. For a transaction requested electronically or by phone, the provider of money transmission may determine if the person requesting the transaction is "in this state" by relying on other information provided by the person regarding the location of the individual's residential address or a business entity's principal place of business or other physical address location and any records associated with the person that the provider of money transmission may have that indicate the location, including but not limited to an address associated with an account;

(11) "Individual," a natural person;

(12) "Key individual," any individual ultimately responsible for establishing or directing policies and procedures of the licensee, such as an executive officer, manager, director, or trustee;

(13) "Licensee," a person licensed under this chapter;

(14) "Material litigation," litigation that, according to United States generally accepted accounting principles, is significant to a person's financial health and would be required to be disclosed in the person's annual audited financial statements, report to shareholders, or similar records;

(15) "Money," a medium of exchange that is authorized or adopted by the United States or a foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments. Money does not include any central bank digital currency;

(16) "Monetary value," a medium of exchange, whether or not redeemable in money;

(17) "Money transmission," any of the following:

(a) Selling or issuing payment instruments to a person located in this state;

(b) Selling or issuing stored value to a person located in this state; or

(c) Receiving money for transmission from a person located in this state.

The term includes payroll processing services. The term does not include the provision solely of online or telecommunications services or network access;

(18) "MSB accredited state," a state agency that is accredited by the Conference of State Bank Supervisors and Money Transmitter Regulators Association for money transmission licensing and supervision;

(19) "Multistate licensing process," any agreement entered into by and among state regulators relating to coordinated processing of applications for money transmission licenses, applications for the acquisition of control of a licensee, control determinations, or notice and information requirements for a change of key individuals;

(20) "NMLS," the Nationwide Multistate Licensing System and Registry developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry, LLC, or any successor or affiliated entity, for the licensing and registration of persons in financial services industries;

(21) "Outstanding money transmission obligations," must be established and extinguished in accordance with applicable state law and:

(a) Any payment instrument or stored value issued or sold by the licensee to a person located in the United States or reported as sold by an authorized delegate of the licensee to a person that is located in the United States that has not yet been paid or refunded by or for the licensee, or escheated in accordance with applicable abandoned property laws; or

(b) Any money received for transmission by the licensee or an authorized delegate in the United States from a person located in the United States that has not been received by the payee or refunded to the sender, or escheated in accordance with applicable abandoned property laws;

(c) For purposes of this section, "in the United States" shall include, to the extent applicable, a person in any state, territory, or possession of the United States; the District of Columbia; the Commonwealth of Puerto Rico; or a U.S. military installation that is located in a foreign country;

(22) "Passive investor," a person that:

(a) Does not have the power to elect a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a person in control of a licensee;

(b) Is not employed by and does not have any managerial duties of the licensee or person in control of a licensee;

(c) Does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee; and

(d) Either attests to (a), (b), and (c) in a form and in a medium prescribed by the director or commits to the passivity characteristics of (a), (b), and (c) in a written document;

(23) "Payment instrument," a written or electronic check, draft, money order, traveler's check, or other written or electronic instrument for the transmission or payment of money or monetary value, whether or not negotiable. The term does not include stored value or any instrument that is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value, or is not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program;

(24) "Payroll processing services," receiving money for transmission pursuant to a contract with a person to deliver wages or salaries, make payment of payroll taxes to state and federal agencies, make payments relating to employee benefit plans, or make distributions of other authorized deductions from wages or salaries. The term payroll processing services does not include an employer performing payroll processing services on its own behalf or on behalf of its affiliate or a professional employment organization subject to regulation under other applicable state law;

(25) "Person," any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation, or other corporate entity identified by the director;

(26) "Receiving money for transmission" or "money received for transmission," receiving money or monetary value in the United States for transmission within or outside the United States by electronic or other means;

(27) "Stored value," monetary value representing a claim against the issuer evidenced by an electronic or digital record and that is intended and accepted for use as a means of redemption for money or monetary value or payment for goods or services. The term includes, but is not limited to, "prepaid access" as defined by 31 C.F.R. § 1010.100 (January 1, 2024). Notwithstanding the foregoing, the term "stored value" does not include a payment instrument, closed loop stored value, or stored value not sold to the public but issued and distributed as part of a loyalty, rewards, or promotional program; and

(28) "Tangible net worth," the aggregate assets of a licensee excluding all intangible assets, less liabilities, as determined in accordance with United States generally accepted accounting principles.

Source: SL 2024, ch 196, § 1.
S.D. Codified Laws § 51A-15-40 — SD Code / Title 51A / Chapter 15 / Section 51A-15-40
Payment of claims not filed within time prescribed
Status: in_force

After the payment of all claims filed within the time prescribed by § 51A-15-36 the director or receiver shall pay all other legal claims.

Source: SL 1969, ch 11, § 13.21 (2); SL 1988, ch 377, § 182; SDCL, § 51-27-32.
S.D. Codified Laws § 51A-3-27 — SD Code / Title 51A / Chapter 3 / Section 51A-3-27
Purchase or purchase money loans on security of own stock prohibited--Exception
Status: in_force

No bank may make any purchase money loans or discounts on the security of the shares of its own capital stock, or on the shares of its parent holding company, nor be the purchaser or holder of any such shares unless such security or purchase is necessary to prevent loss upon a debt previously contracted in good faith. Stock so purchased or acquired shall, within six months of the time of its purchase, be sold or disposed of at public or private sale, and if not disposed of within that time, may no longer be included in the assets of such bank. However, a bank may purchase for fair value fractional shares of a bank's common stock from the holders thereof pursuant to the provisions set forth in Title 47 for the purpose of canceling the fractional shares if the bank meets all capital requirements after cancellation of the fractional shares.

Source: SDC 1939, § 6.0430; SL 1964, ch 12; SDCL, § 51-11-16; SL 1969, ch 11, § 4.15; SDCL, § 51-18-16; SL 1988, ch 377, § 92; SDCL, § 51-17-24.1; SL 1997, ch 270, § 1.
S.D. Codified Laws § 51A-7-12 — SD Code / Title 51A / Chapter 7 / Section 51A-7-12
Indication of parent bank on branches and drive-in facilities
Status: in_force

A branch bank, mobile branch bank, or drive-in facility shall clearly indicate the identity of its parent bank.

Source: SL 1981, ch 346, § 70; SDCL § 51-20-13; SL 2008, ch 252, § 34.
S.D. Codified Laws § 51A-4-1 — SD Code / Title 51A / Chapter 4 / Section 51A-4-1
Miscellaneous banking powers
Status: in_force

In addition to powers otherwise conferred by the laws of this state, a bank may exercise all such powers as are usual in carrying on the business of banking, including, the buying, discounting, and negotiating promissory notes, bonds, drafts, bills of exchange, foreign and domestic, and other evidences of debt; by receiving commercial and saving deposits under such rules as the commission may establish; by buying and selling coin and bullion, and by buying and selling exchange, foreign and domestic; issuing letters of credit, by loaning money on personal and real security, and by renting receptacles for safekeeping on its premises.

Source: SL 1891, ch 27, § 4; RCivC 1903, § 850; SL 1909, ch 222, art 2, § 4; SL 1911, ch 255, § 6; SL 1915, ch 102, art 2, § 5; RC 1919, §§ 8952, 9037; SDC 1939, § 6.0401 (4), (5); SDCL, §§ 51-6-7, 51-6-11; SL 1969, ch 11, § 4.1; SL 1988, ch 377, § 79; SDCL, § 51-18-1.
S.D. Codified Laws § 51A-17-76 — SD Code / Title 51A / Chapter 17 / Section 51A-17-76
Multistate licensing--Investigation
Status: in_force

If an applicant for acquisition of control under § 51A-17-72 avails itself or is otherwise subject to a multistate licensing process:

(1) The director is authorized and encouraged to accept the investigation results of a lead investigative state for the purpose of § 51A-17-73 if the lead investigative state has sufficient staffing, expertise, and minimum standards; or

(2) If this state is a lead investigative state, the director is authorized and encouraged to investigate the applicant pursuant to § 51A-17-73 and the timeframes established by agreement through the multistate licensing process.

Source: SL 2024, ch 196, § 25.
S.D. Codified Laws § 51A-4-17 — SD Code / Title 51A / Chapter 4 / Section 51A-4-17
Sale of assets of bank
Status: in_force

A bank may sell any asset in the ordinary course of business, or, with the approval of the director in any other circumstance, but the sale of all or substantially all of the assets of a bank or a department thereof is considered a voluntary liquidation and governed by chapters 51A-14 and 51A-15 .

Source: SL 1969, ch 11, § 4.11; SL 1970, ch 265, § 29; SL 1981, ch 346, § 32; SL 1988, ch 377, § 88; SDCL, § 51-18-12.
S.D. Codified Laws § 51A-3-1.1 — SD Code / Title 51A / Chapter 3 / Section 51A-3-1.1
Bank organized as limited liability company--Rules
Status: in_force

A bank may be organized as a limited liability company. The commission shall promulgate rules pursuant to chapter 1-26 , consistent with Title 51A, for the organization, management, extension of its charter , and general administration of a bank that is organized as a limited liability company. The rules shall facilitate the organization and capital structure, the offering of trust business and the ability to develop branch bank and drive - in facilities, the offering of remote service banking and bank services, the acceptance of deposits and the making of investments, the offering of safe deposit and safe keeping protocols, the making of loans, the reorganization of the limited liability company bank, and the operation of a bank organized as a limited liability company to operate on an equal and parity basis with a bank organized as a corporation.

Source: SL 2004, ch 289, § 2.
S.D. Codified Laws § 51A-4-21 — SD Code / Title 51A / Chapter 4 / Section 51A-4-21
Bad debts--Maximum time allowed before charge-off--Overdraft not allowed as asset
Status: in_force

Any debt due to any bank on which the interest is past due and unpaid for a period of six months unless the debt is well secured or in process of collection, shall be considered a bad debt and be charged to the reserve for loan and lease losses. In no case may an overdraft be held as an asset by any bank for a period of time longer than that set by the rules of the commission.

Source: SDC 1939, § 6.0432; SDCL, § 51-11-14; SL 1969, ch 11, § 4.16; SL 1981, ch 346, § 35; SL 1988, ch 377, § 93; SDCL, § 51-18-17; SL 1991, ch 390, § 6; SL 1997, ch 271, § 1.
S.D. Codified Laws § 51A-17-99 — SD Code / Title 51A / Chapter 17 / Section 51A-17-99
Tangible net worth of licensee
Status: in_force

(1) A licensee under this chapter must maintain at all times a tangible net worth of the greater of one hundred thousand dollars or three percent of total assets for the first one hundred million dollars, two percent of additional assets for one hundred million dollars to one billion dollars, and one-half of one percent of additional assets over one billion dollars.

(2) Tangible net worth must be demonstrated at initial application by the applicant’s most recent audited or unaudited financial statements pursuant to subsection 51A-17-61 (2)(f).

(3) Notwithstanding the foregoing provisions of this section, the director shall have the authority, for good cause shown, to exempt, in-part or in whole, from the requirements of this section any applicant or licensee.

Source: SL 2024, ch 196, § 48.
S.D. Codified Laws § 51A-6A-21 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-21
Transferring stock and ownership units
Status: in_force

The shares of stock and ownership units of any trust company are personal property and shall be transferred on the books of the trust company in such manner as the bylaws or operating regulations of the trust company may direct. No stock or ownership units may be transferred on the books of the trust company when the trust company is in a failing condition, or when its capital is impaired, except upon approval of the director. If a transfer of shares of stock of any trust company, or holding company that owns a majority of the outstanding shares of a trust company, occurs which results through direct or indirect ownership by a stockholder or an affiliated group of stockholders of ten percent or more of the outstanding stock of the trust company, or holding company that owns a majority of the outstanding shares of a trust company, and if additional shares of stock of the trust company are transferred to such stockholders, affiliated group of stockholders, or holding company, the president or other chief executive officer of the trust company shall report the transfer to the director within ten days after transfer of the shares of stock on the books of the trust company.

Source: SL 1995, ch 268, § 19; SL 2013, ch 239, § 4.
S.D. Codified Laws § 51A-5-7 — SD Code / Title 51A / Chapter 5 / Section 51A-5-7
Foreign bank or trust company to comply with requirements to act as fiduciary in state--Violation as misdemeanor
Status: in_force

No bank or trust company organized and doing business under the laws of any state or territory of the United States of America, or of the District of Columbia, other than South Dakota, or a national bank doing business in any other state, territory, or district, may act in a fiduciary capacity in this state, except pursuant to the provisions of §§ 51A-5-8 to 51A-5-10 , inclusive. A violation of this section is a Class 2 misdemeanor.

Source: SL 1973, ch 292, § 4; SL 1990, ch 158, § 28; SDCL, § 51-19-5.1; SL 1995, ch 268, § 67; SL 1997, ch 272, § 5.
S.D. Codified Laws § 51A-15-1 — SD Code / Title 51A / Chapter 15 / Section 51A-15-1
Voluntary liquidation--Requirements for approval
Status: in_force

Any bank may file an application with the commission to voluntarily liquidate and dissolve. Such application may be approved by the commission upon finding:

(1) The proposal to liquidate and dissolve has been approved by a vote of two - thirds of the outstanding voting stock at a meeting called for the purpose of considering such action.

(2) The bank is solvent and has sufficient liquid assets to forthwith pay off depositors and creditors.

Source: SL 1969, ch 11, § 13.1; SL 1970, ch 265, § 60; SL 1988, ch 377, § 163; SDCL, § 51-27-1.
S.D. Codified Laws § 51A-2-21 — SD Code / Title 51A / Chapter 2 / Section 51A-2-21
Order to prohibit stockholders' action pending judicial determination
Status: in_force

The director may order the prohibition of specific action at any stockholders' meeting of any bank pending timely application for judicial determination on any matter if he believes that such order is necessary to protect the bank against improper, incompetent or careless management practices to safeguard the funds of depositors or to prevent willful violation of this title or any regulation adopted hereunder.

Source: SL 1969, ch 11, § 2.17 (1); SL 1970, ch 265, § 9; SL 1988, ch 377, § 37; SDCL, § 51-16-24.
S.D. Codified Laws § 51A-7-29 — SD Code / Title 51A / Chapter 7 / Section 51A-7-29
Intentional misleading as to source of product, service, or communication prohibited
Status: in_force

No person may use the word, bank, or any variation of the word, bank, or logo of an existing bank, trust company, savings association, savings bank, or affiliate in a manner that intentionally misleads a person about the source of origin, affiliation, or sponsorship of a product or service or about the true identity source of a communication regardless of the nature of the communication.

Source: SL 2008, ch 252, § 44.
S.D. Codified Laws § 51A-15-24 — SD Code / Title 51A / Chapter 15 / Section 51A-15-24
Reorganization of bank by director--Distribution and effect of reorganization plan
Status: in_force

If the director of the Division of Banking determines to reorganize a bank he shall enter an order proposing a reorganization plan. A copy of the plan shall be sent to each depositor and creditor who will not receive payment of his claim in full under the plan together with notice that the director will proceed to effect the reorganization unless, within fifteen days, the plan is disapproved in writing by persons holding one - third or more of the aggregate amount of those claims. A department, agency, or political subdivision of this state holding a claim which will not be paid in full is authorized to participate as any other creditor.

Source: SL 1969, ch 11, § 13.7 (3); SL 1982, ch 336, § 5; SDCL, § 51-27-16.
S.D. Codified Laws § 51A-4-23 — SD Code / Title 51A / Chapter 4 / Section 51A-4-23
Leasing of personal property by bank--Terms and conditions
Status: in_force

A bank may, on its own behalf or through a designated subsidiary, acquire and lease to others, personal property with the approval of the director or in accordance with rules adopted by the commission, upon the following terms and conditions:

(1) The original lease shall be in writing and shall be entered into prior to the acquisition of the property to be leased; and

(2) The terms of such lease shall require payment to the bank or subsidiary of rentals during the minimum period of the lease which in the aggregate will exceed the total expenditures by the bank for or in connection with the acquisition, ownership, and protection of the property, less residual value of the property.

Source: SL 1969, ch 11, § 4.18; SL 1970, ch 265, § 31; SL 1988, ch 377, § 95; SDCL, § 51-18-19.
S.D. Codified Laws § 51A-17-80 — SD Code / Title 51A / Chapter 17 / Section 51A-17-80
Acquisition of control--Further exceptions
Status: in_force

(1) The requirements in subdivisions 51A-17-72 (1) and (2) do not apply to a person that has complied with and received approval to engage in money transmission under this chapter or was identified as a person in control in a prior application filed with and approved by the director or by an MSB accredited state pursuant to a multistate licensing process, provided that:

(a) The person has not had a license revoked or suspended or controlled a licensee that has had a license revoked or suspended while the person was in control of the licensee in the previous five years;

(b) If the person is a licensee, the person is well managed and has received at least a satisfactory rating for compliance at its most recent examination by an MSB accredited state if such rating was given;

(c) The licensee to be acquired is projected to meet the requirements of §§ 51A-17-99 to 51A-17-101 , inclusive, after the acquisition of control is completed, and if the person acquiring control is a licensee, that licensee is also projected to meet the requirements of §§ 51A-17-100 to 51A-17-102 , inclusive, after the acquisition of control is completed;

(d) The licensee to be acquired will not implement any material changes to its business plan as a result of the acquisition of control, and if the person acquiring control is a licensee, that licensee also will not implement any material changes to its business plan as a result of the acquisition of control; and

(e) The person provides notice of the acquisition in cooperation with the licensee and attests to subsections (a) through (d) in this section in a form and in a medium prescribed by the director.

(2) If the notice is not disapproved within thirty days after the date on which the notice was determined to be complete, the notice is deemed approved.

Source: SL 2024, ch 196, § 29.
S.D. Codified Laws § 51A-2-3 — SD Code / Title 51A / Chapter 2 / Section 51A-2-3
Director of division--Vacancy--Qualifications
Status: in_force

The division shall be under the administrative control and supervision of the director. If the office of director is vacated a successor shall be appointed to fill the unexpired term then remaining.

The director shall have such professional and business experience that, in the opinion of the secretary of labor and regulation, equip him to discharge the duties and fulfill the responsibilities of the office of director.

Source: SL 1909, ch 222, art 1, § 2; SL 1911, ch 256, § 2; SL 1915, ch 102, art 1, § 2; SL 1917, ch 140, § 1; RC 1919, § 8918; SL 1921, ch 135; SL 1933, ch 56; SDC 1939, § 6.0206; SDCL § 51-2-1; SL 1969, ch 11, § 2.2; SL 1980, ch 370, § 20; SL 1988, ch 377, § 17; SDCL § 51-16-2; SL 2003, ch 272, (Ex. Ord. 03-1), § 24; SL 2011, ch 1 (Ex. Ord. 11-1 ), § 162, eff. Apr. 12, 2011.
S.D. Codified Laws § 51A-3-9 — SD Code / Title 51A / Chapter 3 / Section 51A-3-9
Conditions to be considered in ruling on application
Status: in_force

In ruling upon any bank application required in § 51A-2-16 , the director or the commission, as the case may be, shall consider the following conditions:

(1) The financial history and condition of the applicant;

(2) The adequacy of the applicant's financial structure;

(3) The future earning prospects of the applicant;

(4) The general character and fitness of the management and ownership of the applicant;

(5) The applicant's ability to serve the community as described in the application; and

(6) Such other facts and circumstances as in the opinion of the director or commission may be relevant.

In any hearing before the commission on an application, the director shall submit to the commission for its consideration pursuant to § 51A-3-10 the director's findings with respect to the above conditions together with all other pertinent information in the director's possession.

Source: SL 1909, ch 222, art 2, § 7; SL 1915, ch 102, art 2, § 9; RC 1919, § 8955; SDC 1939, § 6.0304; SL 1963, ch 23; SDCL § 51-3-7; SL 1969, ch 11, § 3.14; SL 1972, ch 253; SL 1981, ch 346, § 23; SL 1988, ch 377, § 65; SDCL § 51-17-15; SL 2008, ch 252, § 12.
S.D. Codified Laws § 51A-7-7 — SD Code / Title 51A / Chapter 7 / Section 51A-7-7
National banks' branching authority
Status: in_force

Any national bank whose principal place of business is in this state is hereby authorized to do all things and perform all acts which state banks are permitted to do or perform under this chapter, subject to the conditions and restrictions provided for state banks as to exercise of like privileges.

Source: SL 1933 (SS), ch 2, § 2; SDC 1939, § 6.0402; SL 1957, ch 11; SDCL, § 51-8-6; SL 1969, ch 11, § 6.5; SDCL, § 51-20-5.
S.D. Codified Laws § 51A-18-11 — SD Code / Title 51A / Chapter 18 / Section 51A-18-11
Dedicated law enforcement communication--Cooperation
Status: in_force

A licensee shall provide a dedicated telephone line or email address for facilitating law enforcement and regulatory agency communications in the event of a report of fraud from a user. The licensee must ensure the telephone line or email address is monitored frequently.

Upon request from a law enforcement or regulatory agency, the licensee must provide relevant findings and grant the requestor assistance in any investigation related to potential fraud.

Source: SL 2026, ch 193, § 11.
S.D. Codified Laws § 51A-17-83 — SD Code / Title 51A / Chapter 17 / Section 51A-17-83
Notice of adding or replacing key individual by licensee--Notice of disapproval by director
Status: in_force

(1) A licensee adding or replacing any key individual must:

(a) Provide notice in a manner prescribed by the director within fifteen days after the effective date of the key individual's appointment; and

(b) Provide information as required by §§ 51A-17-62 and 51A-17-63 within forty-five days of the effective date.

(2) Within ninety days of the date on which the notice provided pursuant to this section was determined to be complete, the director may issue a notice of disapproval of a key individual if the competence, experience, character, or integrity of the individual would not be in the best interests of the public or the customers of the licensee to permit the individual to be a key individual of such licensee.

(3) A notice of disapproval must contain a statement of the basis for disapproval and shall be sent to the licensee and the disapproved individual. A licensee may appeal a notice of disapproval pursuant chapter 1-26 within thirty days of receipt of such notice of disapproval.

(4) If the notice provided pursuant to this section is not disapproved within ninety days after the date on which the notice was determined to be complete, the key individual is deemed approved.

(5) If a multistate licensing process includes a key individual notice review and disapproval process pursuant to this section and the licensee avails itself or is otherwise subject to the multistate licensing process:

(a) The director is authorized and encouraged to accept the determination of another state if the investigating state has sufficient staffing, expertise, and minimum standards for the purpose of this section; or

(b) If this state is a lead investigative state, the director is authorized and encouraged to investigate the applicant pursuant to this section and the timeframes established by agreement through the multistate licensing process.

Source: SL 2024, ch 196, § 32.
S.D. Codified Laws § 51A-1-1 — SD Code / Title 51A / Chapter 1 / Section 51A-1-1
Applicability of provisions--Retention of capital structure by banks
Status: in_force

Any bank, branch bank, drive - in facility, bank service corporation or other entity by its term subject to this title, is subject to this title, except that the legality of their organization under prior law is not affected by this title. Banks may retain their capital structure. However the director may order any bank to comply with the capitalization requirements of this title or such additional amounts as he deems necessary upon a finding by him that the sound conduct of banking will be jeopardized by the retention of such prior capital structure.

Source: SL 1969, ch 11, § 1.13; SDCL, § 51-15-13; SL 1988, ch 377, § 11; SDCL, § 51-15-1.1.
S.D. Codified Laws § 51A-17-110 — SD Code / Title 51A / Chapter 17 / Section 51A-17-110
Suspension or revocation of license
Status: in_force

(1) The director may suspend or revoke a license or order a licensee to revoke the designation of an authorized delegate if:

(a) The licensee violates this chapter or a rule adopted or an order issued under this chapter;

(b) The licensee does not cooperate with an examination or investigation by the director;

(c) The licensee engages in fraud, intentional misrepresentation, or gross negligence;

(d) An authorized delegate is convicted of a violation of a state or federal anti-money laundering statute, or violates a rule adopted or an order issued under this chapter, as a result of the licensee's willful misconduct or willful blindness;

(e) The competence, experience, character, or general fitness of the licensee, authorized delegate, person in control of a licensee, key individual, or responsible person of the authorized delegate indicates that it is not in the public interest to permit the person to provide money transmission;

(f) The licensee engages in an unsafe or unsound practice;

(g) The licensee is insolvent, suspends payment of its obligations, or makes a general assignment for the benefit of its creditors; or

(h) The licensee does not remove an authorized delegate after the director issues and serves upon the licensee a final order including a finding that the authorized delegate has violated this chapter.

(2) In determining whether a licensee is engaging in an unsafe or unsound practice, the director may consider the size and condition of the licensee's money transmission, the magnitude of the loss, the gravity of the violation of this chapter, and the previous conduct of the person involved.

Source: SL 2024, ch 196, § 59.
S.D. Codified Laws § 51A-6A-11.2 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-11.2
Office space requirements
Status: in_force

For purposes of § 51A-6A-11.1 , office space in South Dakota for each public trust company shall:

(1) Be in premises distinct and divided from the office space of any other entity;

(2) Have the name, charter, and certificate of authority of the trust company prominently displayed;

(3) Have access to premises in or adjacent to the office space sufficient to facilitate onsite examinations by the division;

(4) To the extent the trust company maintains hard copies of any documents required to be maintained pursuant to § 51A-6A-30 , have a secure fireproof file cabinet that contains all such hard copies; and

(5) To the extent the trust company maintains any record electronically, have a secure computer terminal or other secure electronic device that provides access to such records, including account information, as necessary to facilitate an efficient and effective examination.

For public trust companies chartered in South Dakota prior to July 1, 2016, the division shall determine full compliance with the provisions of this section at the first regular examination after June 30, 2018.

Source: SL 2016, ch 231, § 5.
S.D. Codified Laws § 51A-4-15 — SD Code / Title 51A / Chapter 4 / Section 51A-4-15
Rediscounting of negotiable paper--Limitation on pledge of assets as security
Status: in_force

A bank may rediscount in good faith and endorse any of its negotiable paper. However, no bank may pledge any of its assets as collateral security for the payment thereof, except as required by rules of the federal reserve bank. The director may require such bank to repay any such rediscounts.

Source: SL 1909, ch 222, art 2, § 33; SL 1915, ch 102, art 2, § 37; SL 1918 (SS), ch 29; RC 1919, § 8984; SL 1919, ch 124; SL 1925, ch 92; SL 1927, ch 53; SL 1933, ch 50; SDC 1939, § 6.0425; SDCL § 51-6-17; SL 1969, ch 11, § 4.10; SDCL § 51-18-11; SL 2012, ch 252, § 14.
S.D. Codified Laws § 51A-3-37 — SD Code / Title 51A / Chapter 3 / Section 51A-3-37
Bonds of officers and employees
Status: in_force

The directors of a bank shall direct and require good and sufficient fidelity bonds on all active officers and employees, whether or not they draw salaries or compensation, which bonds shall provide for indemnity to such bank on account of any losses sustained by it as a result of any dishonest, fraudulent, or criminal act or omission committed or omitted by them acting independently or in collusion or combination with any person or persons. Such bonds may be in individual, schedule, or blanket bond form, and the premiums therefor may be paid by the bank.

Source: SL 1909, ch 222, art 2, § 9; SL 1915, ch 102, art 2, § 11; RC 1919, § 8957; SL 1925, ch 96; SL 1933 (SS), ch 4; SL 1935, ch 58; SDC 1939, § 6.0318; SDCL, § 51-3-20; SL 1969, ch 11, § 3.29; SDCL, § 51-17-36.
S.D. Codified Laws § 51A-3-22 — SD Code / Title 51A / Chapter 3 / Section 51A-3-22
Amendment of articles of incorporation--Changes requiring approval of director--Filing of amendments
Status: in_force

A bank may amend its articles of incorporation in the manner provided under §§ 47-1A-101 to 47-1A-863.3 , inclusive, §§ 47-1A-1001 to 47-1A-1021 , inclusive, and §§ 47-1A-1201 to 47-1A-1202.6 , inclusive, upon amendment certified by its president, except that prior approval of the director shall be required for a bank to: change its name or location; acquire or abandon trust powers; change the number or par value of its shares of stock; change the amount of capital; or, extend its corporate existence. Such approval must be based upon a finding that the security of existing creditors will not be impaired by the proposed action. All such amendments shall be filed in the same manner as provided for original articles of incorporation.

Source: SL 1909, ch 222, art 2, § 15; SL 1915, ch 102, art 2, § 17; RC 1919, § 8963; SDC 1939, § 6.0307; SDCL, §§ 51-3-9, 51-4-6; SL 1969, ch 11, § 3.19; SDCL, § 51-17-21; SL 2005, ch 202, § 20.
S.D. Codified Laws § 51A-17-97 — SD Code / Title 51A / Chapter 17 / Section 51A-17-97
Required disclosure of division information on receipt or licensee's website
Status: in_force

In addition to the contact information required in subsection 51A-17-96 (1)(e), every licensee or authorized delegate must include on a receipt or disclose on the licensee's website or mobile application the name and phone number of the division and a statement that the licensee's customers can contact the division with questions or complaints about the licensee's money transmission services.

Source: SL 2024, ch 196, § 46.
S.D. Codified Laws § 51A-6A-26 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-26
Issuance of convertible or nonconvertible capital notes or debentures
Status: in_force

In accordance with normal business considerations and upon approval of owners owning two-thirds of the voting stock or ownership units of the trust company, the trust company may issue convertible or nonconvertible capital notes or debentures in such amounts pursuant to terms and conditions as approved by the director. However, the principal amount of capital notes or debentures outstanding at any time may not exceed an amount equal to one hundred percent of the trust company's paid-in capital stock or ownership units plus fifty percent of the amount of its unimpaired surplus fund. Capital notes or debentures that are by their terms expressly subordinated to the prior payment in full of all liabilities of the trust company are part of the unimpaired capital funds of the trust company.

Source: SL 1995, ch 268, § 24; SL 2015, ch 239, § 6.
S.D. Codified Laws § 51A-18-10 — SD Code / Title 51A / Chapter 18 / Section 51A-18-10
Customer service
Status: in_force

At a minimum, a licensee shall provide live customer service during the hours between 8:00 a.m. to 10:00 p.m. local time. A toll-free telephone number must be displayed on the virtual currency kiosk or the kiosk's screen.

Source: SL 2026, ch 193, § 10.
S.D. Codified Laws § 51A-4-26 — SD Code / Title 51A / Chapter 4 / Section 51A-4-26
Exceptions to investment limitation--Purchase of federal, state, and municipal obligations and bonds or interim notes of South Dakota Building Authority
Status: in_force

A bank may, without limitation as to capital stock and surplus, purchase bonds, notes, debentures, or other obligations issued by or the payment of which is guaranteed by the United States government or any agency or subdivision thereof, including the Federal Home Loan Mortgage Corporation, Federal Agricultural Mortgage Corporation, the State of South Dakota, any state, territorial, or insular possession of the United States, any county, rural district, school district, municipality, or township of the State of South Dakota, or any out - of - state county, municipality, or political subdivision, if such bonds, notes, debentures, or obligations are general obligations of the issuing authority. A bank may, without such limitation purchase state, municipal, or school district subdivision bonds or notes which are fully defeased as to principal and interest and may also purchase bonds or interim notes issued by the South Dakota Building Authority. The Banking Commission may by rule grant additional investment exceptions, if such additional investments are the general obligation of the issuing authority. A bank may purchase stock in the Federal Agricultural Mortgage Corporation established under Title VII of the Agricultural Credit Act of 1987 (P.L. 233).

Source: SDC 1939, § 6.0428 as added by SL 1957, ch 14; SL 1961, ch 19; SL 1963, ch 27; SL 1966, ch 14; SDCL, § 51-11-1; SL 1969, ch 11, § 4.22; SL 1970, ch 265, § 34; SL 1978, ch 352, § 2; SL 1984, ch 312; SL 1988, ch 377, § 97; SL 1988, ch 379, § 1; SL 1988, ch 380, § 1; SDCL, § 51-18-23.
S.D. Codified Laws § 51A-4-16 — SD Code / Title 51A / Chapter 4 / Section 51A-4-16
Sale, transfer, or assignment of loan participations
Status: in_force

A bank may sell, transfer or assign participations in mortgage loans and other loans made by a bank to agencies of the state or federal government, to public instrumentalities, or to financial institutions of any type including, but not limited to, banks, savings and loan associations, finance companies, bank holding companies, insurance companies and other financial institutions, whether such institution is incorporated or chartered in the state of South Dakota or in another state.

Source: SL 1981, ch 346, § 39; SDCL, §§ 51-18-11.1, 51-18-29.
S.D. Codified Laws § 51A-17-94 — SD Code / Title 51A / Chapter 17 / Section 51A-17-94
Exception--Request for refund by sender
Status: in_force

(1) This section does not apply to:

(a) Money received for transmission subject to the federal Remittance Rule, 12 C.F.R. § 1005.30 to § 1005.36, inclusive (January 1, 2024); or

(b) Money received for transmission pursuant to a written agreement between the licensee and payee to process payments for goods or services provided by the payee.

(2) Every licensee shall refund to the sender within ten days of receipt of the sender's written request for a refund of any and all money received for transmission unless any of the following occurs:

(a) The money has been forwarded within ten days of the date on which the money was received for transmission;

(b) Instructions have been given committing an equivalent amount of money to the person designated by the sender within ten days of the date on which the money was received for transmission;

(c) The agreement between the licensee and the sender instructs the licensee to forward the money at a time that is beyond ten days of the date on which the money was received for transmission. If funds have not yet been forwarded in accordance with the terms of the agreement between the licensee and the sender, the licensee shall issue a refund in accordance with the other provisions of this section; or

(d) The refund is requested for a transaction that the licensee has not completed based on a reasonable belief or a reasonable basis to believe that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur.

(e) The refund request does not enable the licensee to identify the sender's name and address or telephone number or identify the particular transaction to be refunded in the event the sender has multiple transactions outstanding.

Source: SL 2024, ch 196, § 43.
S.D. Codified Laws § 51A-8-1.1 — SD Code / Title 51A / Chapter 8 / Section 51A-8-1.1
Deposits through use of remote service units--Limited to certain financial institutions
Status: in_force

No person other than a national bank, a bank organized under the laws of this or any state, a savings and loan association or savings bank organized under the laws of the United States or this or any state, or a credit union organized under the laws of the United States, may accept deposits through the use of remote service units.

Source: SL 2005, ch 253, § 1.
S.D. Codified Laws § 51A-12-4 — SD Code / Title 51A / Chapter 12 / Section 51A-12-4
Loan to customer used for partnership or corporation
Status: in_force

A loan or other extension of credit to a customer, the proceeds of which the customer intends to place in a partnership in which he is a partner or a corporation in which he is a stockholder, is not required to be combined with obligations of the partnership or corporation for the purpose of § 51A-12-2 unless the loan is made in reliance on the assets and repayment ability of the partnership or the corporation.

Source: SL 1969, ch 11, § 10.2; SL 1970, ch 265, § 53; SDCL, § 51-24-4; SL 1993, ch 351, § 2.
S.D. Codified Laws § 51A-3-25 — SD Code / Title 51A / Chapter 3 / Section 51A-3-25
Change in control of bank
Status: in_force

For the purposes of application approval under § 51A-2-16 , a change of control created by the acquisition of shares in satisfaction of a debt previously contracted in good faith or through testate or intestate succession, bona fide gift, or trust distribution does not require an application for change in control. The acquirer shall advise the director within thirty days after the acquisition and provide such information as the director may request.

For the purposes of this section, the term, control, means the power, directly or indirectly, to direct the management or policies of a bank or to vote twenty-five percent or more of any class of voting securities of a bank.

Source: SL 1988, ch 371, § 70; SL 1989, ch 411, § 1; SDCL § 51-17-23.1; SL 1991, ch 390, § 4; SL 2008, ch 252, § 16; SL 2012, ch 252, § 11.
S.D. Codified Laws § 51A-18-4 — SD Code / Title 51A / Chapter 18 / Section 51A-18-4
Report of condition requirements
Status: in_force

In addition to the requirements of § 51A-17-84 , the report of condition submitted by a licensee must contain:

(1) The licensee's legal name and any fictitious or trade name;

(2) The licensee's physical address and the location of each virtual currency kiosk being operated in this state, at the time of the report, by the licensee;

(3) The date operation began for each kiosk being operated in this state, at the time of the report, by the licensee;

(4) The date operation ceased for any kiosk operated in this state, during the reported quarter, by the licensee;

(5) For each kiosk operated by the licensee in this state, any alphanumeric identifier used by the licensee, which:

(a) Is associated with a software application or other mechanism that provides the means to access or transfer virtual currency; and

(b) Identifies the location to which virtual currency is sent; and

(6) The number of virtual currency transactions declined due to a suspicion of fraudulent activity.

Source: SL 2026, ch 193, § 4.
S.D. Codified Laws § 51A-19-5 — SD Code / Title 51A / Chapter 19 / Section 51A-19-5
Authority--Expiration--Extension
Status: in_force

Except as otherwise provided in this section, the authority granted the financial institution under § 51A-19-2 expires upon the earliest of:

(1) Thirty business days after the date on which the financial institution first acted under § 51A-19-2 ;

(2) When the financial institution is satisfied that the transaction or act will not result in financial exploitation of the consenting, senior, or vulnerable adult; or

(3) Termination by an order of a court of competent jurisdiction.

Unless otherwise directed by order of a court, a financial institution may extend the duration of authority under this section based on a reasonable belief that the financial exploitation of a consenting, senior, or vulnerable adult may continue to occur or continue to be attempted.

Source: SL 2026, ch 194, § 5.
S.D. Codified Laws § 51A-18-14 — SD Code / Title 51A / Chapter 18 / Section 51A-18-14
Verification of user identity--Strict liability
Status: in_force

For each virtual currency transaction at a licensee's virtual currency kiosk, the licensee shall verify the identity of a user prior to accepting payment from the user. The licensee shall:

(1) Obtain a copy of a government-issued identification card that identifies the user; and

(2) Collect additional user information, including the user's full legal name, date of birth, telephone number, mailing and physical addresses, and email address, prior to accepting a payment from a user.

The licensee may not allow a user to engage in a transaction at the kiosk using any name, account, or identity that does not belong to the user.

The licensee is strictly liable for any violation of this section.

Source: SL 2026, ch 193, § 14.
S.D. Codified Laws § 51A-3-3 — SD Code / Title 51A / Chapter 3 / Section 51A-3-3
Incorporators of bank
Status: in_force

The incorporators shall be any number of natural persons, residents of this state, eighteen years of age or older, not less than five in number.

Source: SL 1891, ch 27, § 1; RCivC 1903, § 847; SL 1909, ch 222, art 2, § 1; SL 1911, ch 255, § 1; SL 1915, ch 102, art 2, § 2; SL 1917, ch 145, § 1; RC 1919, §§ 8949, 9032; SL 1925, ch 95; SL 1927, ch 60; SDC 1939, § 6.0302; SDCL, § 51-3-2; SL 1969, ch 11, § 3.3; SL 1988, ch 377, § 55; SDCL, § 51-17-3.
S.D. Codified Laws § 51A-7-23 — SD Code / Title 51A / Chapter 7 / Section 51A-7-23
Joint examinations of joint enforcement actions by commission and bank supervisory agencies
Status: in_force

The commission may enter into joint examinations or joint enforcement actions with other bank supervisory agencies having concurrent jurisdiction over any branch established and maintained in South Dakota by an out - of - state bank or any branch established and maintained by a South Dakota state bank in any host state. The director may at any time take any actions independently if the director deems such actions to be necessary or appropriate to carry out the commission's responsibilities under §§ 51A-7-13 to 51A-7-26 , inclusive, or to ensure compliance with the laws of South Dakota. However, in the case of an out - of - state state bank, the director shall recognize the exclusive authority of the home state regulator with respect to matters of safety and soundness.

Source: SL 1996, ch 280, § 11; SL 2021, ch 204, § 4.
S.D. Codified Laws § 51A-15-3 — SD Code / Title 51A / Chapter 15 / Section 51A-15-3
Notice of voluntary liquidation--Manner of publication--Contents
Status: in_force

Within thirty days of the approval, a notice of voluntary liquidation shall be:

(1) Mailed to the last known post - office address of each depositor, creditor, person interested in funds held as a fiduciary, lessee of a safe deposit box or bailor of property;

(2) Posted conspicuously on the premises of the bank; and

(3) Published as the director shall require.

The bank shall mail with the notice a statement of the amount shown on its books to be the claim of the depositor or creditor. The notice shall also demand that property held by the bank as bailee or in a safe deposit box be withdrawn by the person entitled thereto within thirty days. The notice shall direct that objections of depositors and creditors, if the amount claimed differs from that in such statement be filed with the bank before a specified date which shall not be less than sixty days from the date of first publication in accordance with the procedure described therein. The notice shall also include such other information as the director or the bank may deem pertinent.

Source: SL 1969, ch 11, § 13.2 (2); SL 1970, ch 265, § 61; SDCL, § 51-27-3.
S.D. Codified Laws § 51A-14-6 — SD Code / Title 51A / Chapter 14 / Section 51A-14-6
Emergency takeover
Status: in_force

If the director, pursuant to § 51A-15-21 , or if the commission deems it necessary that a state bank, national bank, or savings and loan association organized pursuant to 12 U.S.C. § 1464 as amended as of January 1, 1990, be merged, consolidated, or its assets purchased and its liabilities assumed in order to protect the depositors and the public from unsound practices, and another bank is willing to merge, consolidate, or purchase the assets and assume the liabilities of such financial institution, the commission may declare that such merger, consolidation, or purchase of assets and assumption of liabilities shall constitute an emergency takeover. The commission may waive any requirement, whether by law or by rule, relative to required application materials, thoroughness of the director's investigation, and length of time before the commission may act. Nothing in this section limits in any way the rights of shareholders of either financial institution to approve the transaction and the manner required by state or federal law.

Source: SL 1981, ch 346, § 67; SL 1988, ch 377, § 161; SL 1990, ch 383, § 3; SDCL § 51-26-6; SL 2012, ch 252, § 25.
S.D. Codified Laws § 51A-18-15 — SD Code / Title 51A / Chapter 18 / Section 51A-18-15
Training and education
Status: in_force

On an annual basis, a licensee shall provide external virtual currency kiosk staff with training materials that describe ways users may be exploited in virtual currency transactions involving kiosks, including indicators that a user may be the victim of fraud.

The licensee may not prohibit or prevent staff at the location of the kiosk from educating users about fraud.

Source: SL 2026, ch 193, § 15.
S.D. Codified Laws § 51A-4-25.1 — SD Code / Title 51A / Chapter 4 / Section 51A-4-25.1
Annuity defined
Status: in_force

For the purposes of § 51A-4-25 , an annuity is an investment that credits interest from the inception of the contract, has an interest guarantee period that may be from thirty days to one year in length, and is backed by the assets of the insurer. The insurer shall be rated in the top three categories of both Standard and Poor's Corporation and Moody's Investors Service. The annuity shall be fully liquid, unless otherwise provided for by Title 58. The annuity may not be subject to any surrender charge.

Source: SL 2002, ch 219, § 2; SL 2005, ch 252, § 1.
S.D. Codified Laws § 51A-11-1 — SD Code / Title 51A / Chapter 11 / Section 51A-11-1
Definition of terms
Status: in_force

Terms used in this chapter, unless the context otherwise plainly requires, shall mean:

(1) "Lessee," a person contracting with the lessor for the use of a safe deposit box;

(2) "Lessor," a bank or branch bank which engages in the business of renting safe deposit facilities;

(3) "Safe deposit box," a box, vault, or other receptacle maintained by a lessor in its vault and the purpose of which is to secure the property of a lessee.

Source: SL 1969, ch 11, § 9.1; SDCL, § 51-23-1.
S.D. Codified Laws § 51A-18-6 — SD Code / Title 51A / Chapter 18 / Section 51A-18-6
Mandatory disclosure--User acknowledgment
Status: in_force

For each virtual currency transaction at a licensee's virtual currency kiosk, the licensee shall provide a user a disclosure that:

(1) Is written in a clear, conspicuous, and easily readable manner;

(2) Is in the chosen language of the user;

(3) Describes the material risks associated with the transaction, including that:

(a) Virtual currency is not issued or backed by the United States government and is not legal tender;

(b) Virtual currency is not subject to protections by the Federal Deposit Insurance Corporation, National Credit Union Administration, or Securities Investor Protection Corporation; and

(c) The value of the virtual currency relative to the United States dollar may fluctuate significantly;

(4) States the name, address, and telephone number of the licensee and the days and times a user may contact the licensee for assistance;

(5) Contains a prominent warning in bold type, provided separately from the other disclosure provisions, which states that:

(a) This technology may be used to defraud a user;

(b) If the user is asked to deposit money at the kiosk by someone who claims to be a friend or family member in a telephone call or electronic message, a government agent, a computer software representative, a bill collector, a law enforcement officer, or anyone not known personally by the user, the transaction should be stopped immediately and local law enforcement and the kiosk operator should be notified; and

(c) The user should not send money to anyone not known personally by the user; and

(6) Provides a full listing of all fees and charges applied to the transaction.

The licensee shall cause contact information for any relevant state and local law enforcement and government agencies for reporting fraud to be displayed on the kiosk, at the location of the kiosk, or on the kiosk's first screen that is visible to the user.

Any time a user engages with a kiosk, the user must acknowledge receipt of all disclosures required pursuant to this section and must confirm the user's consent to use the kiosk, and the kiosk must transmit notice of the user's acknowledgment and confirmation to the licensee. Acknowledgment of the disclosures required by this section does not affect or prevent a fraud victim's eligibility for a refund pursuant to § 51A-18-7 .

Source: SL 2026, ch 193, § 6.
S.D. Codified Laws § 51A-17-116 — SD Code / Title 51A / Chapter 17 / Section 51A-17-116
Order to cease and desist--Service
Status: in_force

(1) If the director has reason to believe that a person has violated or is violating § 51A-17-59 , the director may issue an order to show cause why an order to cease and desist should not issue requiring that the person cease and desist from the violation of § 51A-17-59 .

(2) In an emergency, the director may petition the circuit court for the issuance of a temporary restraining order ex parte pursuant to the rules of civil procedure.

(3) An order to cease and desist becomes effective upon service of it upon the person.

(4) An order to cease and desist remains effective and enforceable pending the completion of an administrative proceeding pursuant to chapter 1-26 .

(5) A person that is served with an order to cease and desist for violating § 51A-17-59 may petition the circuit court for a judicial order setting aside, limiting, or suspending the enforcement, operation, or effectiveness of the order pending the completion of an administrative proceeding pursuant to chapter 1-26 .

(6) An order to cease and desist expires unless the director commences an administrative proceeding within ten days after it is issued.

Source: SL 2024, ch 196, § 65.
S.D. Codified Laws § 51A-4-8 — SD Code / Title 51A / Chapter 4 / Section 51A-4-8
Deposit insurance required--Federal reserve system membership authorized
Status: in_force

Any bank authorized to engage in business under this title may obtain insurance of its deposits by the United States or any agency thereof. The commission may, by rule promulgated pursuant to chapter 1-26 , establish requirements for insurance coverage of deposits. Any bank is authorized to acquire and hold membership in the federal reserve system. Such bank shall nevertheless be subject to the supervision and examination required by the laws of this state relating to banks.

Source: SL 1915, ch 102, art 2, § 36; RC 1919, § 8983; SL 1919, ch 125; SL 1933 (SS), ch 1, § 1; SL 1935, ch 61, § 1; SDC 1939, §§ 6.0405, 6.0408; SDCL, §§ 51-6-12, 51-6-13; SL 1969, ch 11, § 4.3; SL 1988, ch 377, § 83; SDCL, § 51-18-3.
S.D. Codified Laws § 51A-4-6 — SD Code / Title 51A / Chapter 4 / Section 51A-4-6
Order to cease and desist for violation--Right to appeal
Status: in_force

The director may, after determining that any person, partnership or corporation is in violation of § 51A-4-5 , issue an order to cease and desist from all activities determined to be the business of banking. Any right to appeal such an order is subject to the provisions of chapter 1-26 governing contested cases.

Source: SL 1988, ch 377, § 81; SDCL, § 51-18-2.1.
S.D. Codified Laws § 51A-15-17 — SD Code / Title 51A / Chapter 15 / Section 51A-15-17
Change of venue
Status: in_force

At any time after the commencement of a proceeding under this chapter, the director may apply to the court for an order changing the venue to any other county of this state in which he deems that such proceeding may be most economically and efficiently conducted.

Source: SL 1970, ch 265, § 76; SDCL, § 51-27-12.2.
S.D. Codified Laws § 51A-6A-7 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-7
Organization of public and private trust companies--Submission and approval of articles--Required information
Status: in_force

Any three or more persons may organize a public trust company and make and file articles as provided by the laws of this state. Any one or more persons may organize a private trust company and make and file articles as provided by the laws of this state. No trust company may be organized or incorporated to engage in business as such until the articles have been submitted and approved in accordance with § 51A-6A-4 . The name selected for the trust company shall include the word, trust, and may not be the name of any other trust company doing business in the state. The director shall accept or reject the name. However, the approval of a trust company name by the director may not supersede any person's rights pursuant to state or federal trademark law. The articles, in addition to any other information required by law, shall state:

(1) That the corporation or limited liability company is formed for the purpose of engaging in the trust company business; and

(2) The period for which such corporation or limited liability company is organized, which may be perpetual.

The articles may contain any other provisions as are consistent with law. The articles shall be subscribed by one or more of the organizers of the proposed trust company and shall be acknowledged by them. The full amount of the capital required by § 51A-6A-19 shall be subscribed before the articles are filed.

Source: SL 1995, ch 268, § 5; SL 2008, ch 258, § 5; SL 2011, ch 212, § 38; SL 2016, ch 231, § 3; SL 2017, ch 204, § 3.
S.D. Codified Laws § 51A-3-7 — SD Code / Title 51A / Chapter 3 / Section 51A-3-7
Applications--Fee
Status: in_force

Any application filed pursuant to § 51A-2-16 shall be delivered to the director and contain any information the director may require. The application shall be accompanied by an application fee in an amount set by the commission. In addition to the application fee, the applicant shall pay any costs associated with the public notice required in § 51A-2-16 . The director may assess an applicant for actual costs of processing the application if the actual costs exceed the application fee.

Source: SDC 1939, § 6.0304; SL 1963, ch 23; SDCL, §§ 51-3-5, 51-3-6; SL 1969, ch 11, § 3.11; SL 1970, ch 265, § 18; SL 1979, ch 323; SL 1981, ch 346, § 22; SL 1988, ch 377, § 62; SDCL, § 51-17-12; SL 1991, ch 390, § 1; SL 2020, ch 204, § 1.
S.D. Codified Laws § 51A-1-4 — SD Code / Title 51A / Chapter 1 / Section 51A-1-4
Disqualification of officer, employee or director for violation--Civil liability
Status: in_force

Any officer, employee or director of a bank who is convicted of violating any of the provisions of this title is disqualified from thereafter acting as an officer, employee or director of any bank and is liable in a civil action to such bank or any of its stockholders for all losses sustained by reason of such violations.

Source: SL 1925, ch 92; SL 1927, ch 53; SL 1933, ch 50; SDC 1939, § 6.0441; SDCL, § 51-1-6; SL 1969, ch 11, § 1.3; SL 1988, ch 377, § 2; SDCL, § 51-15-3.
S.D. Codified Laws § 51A-3-6 — SD Code / Title 51A / Chapter 3 / Section 51A-3-6
Transfers to surplus
Status: in_force

One - tenth of the net profit for any dividend period shall be carried to the surplus fund until such fund shall amount to twenty percent of the capital stock or members' equity. Any losses sustained in excess of undivided profits may be charged to the surplus account, but no dividends shall thereafter be declared or paid until the surplus fund shall amount to twenty percent of the capital stock or members' equity.

Source: SL 1891, ch 27, § 13; RCivC 1903, § 859; SL 1909, ch 222, art 2, § 36; SL 1911, ch 255, § 14; SL 1915, ch 102, art 2, § 40; RC 1919, §§ 8988, 9044; SDC 1939, § 6.0439; SL 1953, ch 14, § 1; SDCL, § 51-4-23; SL 1969, ch 11, § 3.8; SDCL, §§ 51-17-5.1, 51-17-9; SL 2004, ch 289, § 9.
S.D. Codified Laws § 51A-15-9 — SD Code / Title 51A / Chapter 15 / Section 51A-15-9
Reports of progress in voluntary liquidation--Order and certificate of dissolution
Status: in_force

The director may require reports of the progress of a bank engaged in voluntary liquidation and whenever he is satisfied that the liquidation has been properly completed he shall cancel the charter and enter an order of dissolution. The filing of a certified copy of such order with the secretary of state shall be deemed authority for the issuance of a certificate of dissolution.

Source: SL 1969, ch 11, § 13.4; SL 1970, ch 265, § 64; SDCL, § 51-27-9; SL 2005, ch 202, § 19.
S.D. Codified Laws § 51A-5-24 — SD Code / Title 51A / Chapter 5 / Section 51A-5-24
Records of securities deposited in clearing corporation--Transfer by book entry--Certification to interested party of securities held
Status: in_force

The records of the fiduciary and the records of the bank acting as custodian, as managing agent or as custodian for a fiduciary shall at all times show the name of the party for whose account the securities are so deposited. Title to the securities may be transferred by bookkeeping entry on the books of the clearing corporation without physical delivery of certificates representing the securities. A bank so depositing securities pursuant to § 51A-5-23 is subject to the rules as, in the case of state chartered institutions, the commission and, in the case of national banking associations, the comptroller of the currency may from time to time issue. A bank acting as custodian for a fiduciary shall, on demand by the fiduciary, certify in writing to the fiduciary the securities so deposited by the bank in the clearing corporation for the account of the fiduciary. A fiduciary shall, on demand by any party to a judicial proceeding for the settlement of the fiduciary's account or on demand by the attorney for the party, certify in writing to the party the securities deposited by the fiduciary in the clearing corporation for its account as the fiduciary.

Source: SL 1978, ch 357, § 3; SL 1988, ch 377, § 116; SDCL, 51-19-10.4; SL 1995, ch 268, § 75; SL 1997, ch 272, § 13; SL 2021, ch 203, § 7.
S.D. Codified Laws § 51A-15-14 — SD Code / Title 51A / Chapter 15 / Section 51A-15-14
Notice of suspension and possession
Status: in_force

The director shall suspend the activities and take possession pursuant to § 51A-15-11 or 51A-15-21 by posting upon the premises a notice reciting that all activities shall be suspended and that the director is assuming possession pursuant to this chapter and the time, not earlier than the posting of the notice, when the director's possession is deemed to commence. The notice shall also be posted to the division's website. The director shall notify the appropriate federal reserve bank of an action to take possession of any bank which is a member of the federal reserve system.

Source: SL 1969, ch 11, § 13.6(1); SL 1988, ch 377, § 166; SDCL § 51-27-11; SL 2012, ch 252, § 26; SL 2015, ch 239, § 10.
S.D. Codified Laws § 51A-7-25 — SD Code / Title 51A / Chapter 7 / Section 51A-7-25
Authority of director in case of violation by South Dakota branch of out-of-state bank
Status: in_force

If it is determined that a branch maintained by an out - of - state state bank in South Dakota is being operated in violation of any provision of the laws of South Dakota or is being operated in an unsafe and unsound manner, the director has the authority to take any enforcement action as though the branch were a South Dakota state bank if the director gives notice to the home state regulator of the enforcement action.

Source: SL 1996, ch 280, § 13.
S.D. Codified Laws § 51A-1-13 — SD Code / Title 51A / Chapter 1 / Section 51A-1-13
Misappropriation of funds or information by officer, director, or employee as felony
Status: in_force

Any officer, director or employee of a bank, who wrongfully diverts or takes any of the money, funds, credits, data, information or property of the bank, whether owned by it or held in trust, who wrongfully withholds payment or remittance of the proceeds of any collection which may come into his hands, who without authority of the directors, issues or puts forth any certificate of deposit, draws any order or bill of exchange, makes any acceptance, assigns any note, bond, draft, bill of exchange, judgment or mortgage, or who makes any false entry in any book, report or statement of the bank or report or statement required by the provisions of this title, with intent to injure the bank or any person, or to deceive any officer of the bank, anyone appointed to examine the affairs of the bank, or any other person, is guilty of a Class 5 felony.

Source: SL 1909, ch 222, art 2, §§ 19, 39; SL 1911, ch 255, § 32; SL 1915, ch 102, art 2, §§ 22, 43; RC 1919, §§ 8969, 8991, 9062; SL 1923, ch 116, § 1; SDC 1939, §§ 6.9903, 6.9910; SDCL, §§ 51-1-2, 51-12-11; SL 1969, ch 11, § 1.11; SL 1980, ch 24, § 79; SL 1988, ch 377, § 9; SDCL, § 51-15-11.
S.D. Codified Laws § 51A-15-18 — SD Code / Title 51A / Chapter 15 / Section 51A-15-18
Director's appointment of Federal Deposit Insurance Corporation as receiver in liquidation proceedings
Status: in_force

The director may appoint the Federal Deposit Insurance Corporation as receiver for a bank of which he has taken possession. Upon filing with the court an order of appointment of the receiver and a certificate indicating the acceptance by the Federal Deposit Insurance Corporation, the possession of all the assets, business, and property, and the title thereto, shall be deemed transferred to such corporation. The director shall be forever thereafter relieved from all responsibility and liability in respect to the liquidation of the bank.

Source: SL 1935, ch 60, §§ 1, 7, 8; SDC 1939, § 6.0626; SDCL, §§ 51-14-15, 51-14-17; SL 1969, ch 11, § 13.25; SL 1970, ch 265, § 74; SDCL, § 51-27-37; SL 1988, ch 377, § 187; SDCL, § 51-27-12.3.
S.D. Codified Laws § 51A-8-5 — SD Code / Title 51A / Chapter 8 / Section 51A-8-5
Branch bank provisions inapplicable
Status: in_force

Remote service units as defined in this chapter are not branch banks as provided by chapter 51A-7 .

Source: SL 1976, ch 305, § 4; SL 1988, ch 377, § 131; SDCL, § 51-20A-5.
S.D. Codified Laws § 51A-6A-54 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-54
Approval required for changing place of business--Examination and investigation by director
Status: in_force

No trust company incorporated under the laws of this state may change its place of business, from one city or town to another or from one location to another within the same city or town, without the prior approval of the director. Any trust company desiring to change its place of business shall file a written application with the director in the form and containing the information as the director requires. The director shall examine and investigate the application and approve or disapprove the application. The expenses of the examination and investigation shall be paid by the trust company.

Source: SL 1995, ch 268, § 52; SL 2008, ch 258, § 10.
S.D. Codified Laws § 51A-12-12 — SD Code / Title 51A / Chapter 12 / Section 51A-12-12
Revolving credit authorized
Status: in_force

A bank may extend credit and collect a credit service charge through a revolving loan account arrangement with a debtor which permits the debtor to obtain loans from time to time by cash advances, by the purchase or satisfaction by the bank of obligations of the debtor incurred pursuant to a credit transaction, or otherwise under a credit card, check-credit, overdraft checking or other similar credit plan. A revolving loan account arrangement between a bank located in the State of South Dakota and a debtor shall be governed by the laws of the State of South Dakota.

Source: SL 1969, ch 11, § 10.8; SL 1981, ch 346, § 58; SL 1987, ch 360, § 1; SL 1988, ch 377, § 151; SDCL § 51-24-12; SL 2014, ch 227, § 1.
S.D. Codified Laws § 51A-1-15 — SD Code / Title 51A / Chapter 1 / Section 51A-1-15
Acknowledgments by officers or employees of banks validated
Status: in_force

No public officer qualified to take acknowledgments or proofs of written instruments may be disqualified for taking the acknowledgment or proof of any instrument in writing in which a bank is interested by reason of his employment, whether as officer or employee, or by reason of his stock ownership or director status in a bank so interested, and any such acknowledgments or proofs taken before July 1, 1981, are hereby validated.

Source: SL 1981, ch 346, § 2; SDCL, § 51-15-15.
S.D. Codified Laws § 51A-4-18 — SD Code / Title 51A / Chapter 4 / Section 51A-4-18
Grounds and procedure for nonobservance of banking hours--Extension of hours
Status: in_force

In the event of a legal holiday, power failure, fire, act of God, riot, strike, robbery or attempted robbery, epidemic, interruption of communication facilities, or for such other reason as the director may determine to be good cause, or in the event of the declaration of the existence of an emergency by the Governor or such other person lawfully exercising the power and duties of the office of Governor, a bank, in the reasonable and proper exercise of its discretion, may determine not to open its main office or any branch on any business or banking day, or, if having opened, to close such main office or any branch during the continuation of any such occurrence or emergency.

Except for legal holidays, the bank shall, as soon as practicable, notify the director of the nonopening or closing period. In no case may the bank be required to comply with any other provision of law regarding the closing or reopening of banks or financial institutions. Any act, which could not be executed because of the closing, may be performed on the next succeeding business day that the main office or branch is reopened for business. Any other provision or rule of law notwithstanding, no liability or loss of rights of any kind on the part of any person, firm, or corporation, or of such bank, may accrue or result by virtue of the nonopening or closing.

In the event of an emergency or natural disaster affecting a bank's community, a bank may, without notice or advance permission from the director, temporarily extend its banking hours for the public convenience during the term of the emergency and disaster. In the event of an emergency or natural disaster, the director may waive any provision under this Title to provide for the continued access to banking facilities by the citizens of this state.

The right of a bank not to open or close under this section and the protections afforded with respect thereto are in addition to and not in lieu of any rights or protections granted under § 57A-4-108 .

Source: SL 1969, ch 11, § 4.12; SL 1981, ch 346, § 33; SL 1986, ch 27, § 53; SL 1988, ch 377, § 89; SDCL § 51-18-13; SL 2008, ch 252, § 17.
S.D. Codified Laws § 51A-17-85 — SD Code / Title 51A / Chapter 17 / Section 51A-17-85
Filing of financial statement--Certificate of opinion
Status: in_force

(1) Each licensee shall, within ninety days after the end of each fiscal year, or within any extended time as the director may prescribe, file with the director:

(a) An audited financial statement of the licensee for the fiscal year prepared in accordance with United States generally accepted accounting principles; and

(b) Any other information as the director may reasonably require.

(2) The audited financial statements shall be prepared by an independent certified public accountant or independent public accountant who is satisfactory to the director.

(3) The audited financial statements shall include or be accompanied by a certificate of opinion of the independent certified public accountant or independent public accountant that is satisfactory in form and content to the director. If the certificate of opinion is qualified, the director may order the licensee to take any action as the director may find necessary to enable the independent or certified public accountant or independent public accountant to remove the qualification.

Source: SL 2024, ch 196, § 34.
S.D. Codified Laws § 51A-6A-19.3 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-19.3
Pledge available to satisfy claims upon liquidation, abandonment of trust powers, or resignation
Status: in_force

Upon liquidation, abandonment of trust powers, or resignation from all duties exercised pursuant to § 51A-6A-29 , the pledge required by § 51A-6A-19 . 2 shall be made available for the reasonable satisfaction of claims involving trust company accounts. Any surplus remaining after the satisfaction of all such claims and costs incurred by the division shall be returned to the trust company. Unless the division has reason to believe that claims are forthcoming, the division shall release any pledge no later than twelve months from the date all affected accounts are moved to a successor trustee, custodian, or administrator.

Source: SL 2013, ch 239, § 2.
S.D. Codified Laws § 51A-1-17 — SD Code / Title 51A / Chapter 1 / Section 51A-1-17
No duty to disclose information about customers--Exceptions
Status: in_force

Any regulated lender as defined in § 54-3-14 has no duty to disclose information about its customers and has no duty to provide an opinion about the creditworthiness of its customers unless such information or opinion is required pursuant to a valid subpoena, court order, statute, or other legal process, or unless the customer authorizes the release of such information or opinion. A regulated lender may restrict the dissemination of information and creditworthiness of its customers by written policy or agreement.

Source: SL 2000, ch 224, § 1.
S.D. Codified Laws § 51A-6A-11 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-11
Authority to transact business required--Violation as misdemeanor
Status: in_force

No individual, firm, or corporation may advertise, publish, or otherwise promulgate that they are engaged in the trust company business, or transact trust company business, without having first obtained authority from the director. Any individual or member of any firm or officer of any corporation violating this section shall be guilty of an unclassified misdemeanor, and upon conviction shall be punished by a fine not exceeding five thousand dollars.

Source: SL 1995, ch 268, § 8.
S.D. Codified Laws § 51A-14-2 — SD Code / Title 51A / Chapter 14 / Section 51A-14-2
Purchase of assets and assumption of liabilities
Status: in_force

A bank may purchase the assets and assume the liabilities of another state bank, national bank or savings and loan association organized pursuant to 12 U.S.C. § 1464 as amended as of January 1, 1990. The provisions of §§ 51A-2-16 and 51A-3-7 to 51A-3-12 , inclusive, govern such applications.

Source: SL 1981, ch 346, § 65; SDCL § 51-26-4; SL 1988, ch 377, § 159; SL 1990, ch 383, § 2; SDCL § 51-26-1.1; SL 2012, ch 252, § 23.
S.D. Codified Laws § 51A-6A-33 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-33
Examination expenses paid by trust companies--Fees
Status: in_force

The expense of every examination, together with the expense of administering the applicable laws, including salaries, travel expenses, supplies, and equipment, shall be paid by the trust companies of the state. A fee shall be imposed upon a trust company consistent with § 51A-2-36 .

Source: SL 1995, ch 268, § 31.
S.D. Codified Laws § 51A-6A-4 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-4
Application for incorporation--Approval procedure--Emergency procedure
Status: in_force

No trust company may be incorporated or organized under the laws of this state or transact trust company business in this state until the application for its incorporation or organization and application or authority to do business and the location of its principal office have been submitted to and approved under the same procedure for bank applications as provided in § 51A-2-16 , except that conditions for considering an application involving a trust company shall be as set forth in § 51A-6A-5 . The director shall prescribe the form for making an application and any application submitted shall contain such information as required. The applicant may, with approval of the director, designate confidential information. Any costs associated with the public notice required in § 51A-2-16 shall be paid by the applicant, in addition to the application fee required in § 51A-6A-6 .

If upon the dissolution or insolvency of any trust company, it is the opinion of the director that by reason of the loss of services in the community, an emergency exists which may result in serious inconvenience or losses to customers or it is in the public interest of the community, the director may accept and approve an application for incorporation or organization and an application for authority to do business without prior notice. Upon approval of an application by the director for authority to do business of a successor trust company, the director may call a special meeting of the commission and submit the application to the commission for its review and confirmation.

Source: SL 1995, ch 268, § 2; SL 2006, ch 243, § 3; SL 2008, ch 258, § 3; SL 2017, ch 204, § 2.
S.D. Codified Laws § 51A-4-13 — SD Code / Title 51A / Chapter 4 / Section 51A-4-13
Borrowing money by bank--Pledge of assets
Status: in_force

A bank may borrow money and pledge assets for terms, and upon conditions, established by the Banking Commission in rules promulgated pursuant to chapter 1-26 .

Source: SDC 1939, § 6.0423; SDCL, § 51-6-14; SL 1969, ch 11, § 4.9; SL 1981, ch 346, § 31; SDCL, § 51A-4-13 ; SL 1999, ch 236, § 1.
S.D. Codified Laws § 51A-2-32 — SD Code / Title 51A / Chapter 2 / Section 51A-2-32
Oaths and bonds of commissioners, director, deputy director, examiners and special examiners, and other division personnel
Status: in_force

Before entering upon his duties, each of the persons hereinafter mentioned, and such other persons in positions of trust named by the commission, shall take and subscribe to the oath of office prescribed by the Constitution, and each shall give to the state a corporate surety bond to be approved, recorded, and filed as the official bonds of other state officers, conditioned for the faithful discharge of the duties of his office. Such bonds may be in individual, schedule, or blanket form and shall be in the following sums: the director, twenty - five thousand dollars; the deputy director, twenty - five thousand dollars; examiners and special examiners, each, twenty - five thousand dollars; all other persons, in an amount fixed by the commission. The premium for the bond of all such officers shall be paid as provided by law for the bonds of other public officers.

Source: SL 1909, ch 222, art 1, § 2; SL 1911, ch 256, § 2; SL 1915, ch 102, art 1, § 2; SL 1917, ch 140, § 1; RC 1919, § 8918; SL 1921, ch 135; SL 1933, ch 47, § 3; SL 1933, ch 56; SDC 1939, § 6.0202; SDCL, §§ 51-2-11, 51-2-13; SL 1969, ch 11, § 2.22; SL 1989, ch 408; SDCL, § 51-16-32.
S.D. Codified Laws § 51A-2-12 — SD Code / Title 51A / Chapter 2 / Section 51A-2-12
Clerical, technical, and legal assistance for commission
Status: in_force

The commission may contract for the services of such clerical, technical and legal assistance as it may require.

Source: SL 1969, ch 11, § 2.12; SL 1988, ch 377, § 26; SDCL, § 51-16-12.
S.D. Codified Laws § 51A-15-42 — SD Code / Title 51A / Chapter 15 / Section 51A-15-42
Distribution of assets remaining after liquidation
Status: in_force

When the director or receiver has liquidated a bank, any assets remaining after all claims have been paid shall be distributed to the stockholders in accordance with their respective interests.

Source: SL 1911, ch 256, § 19; SL 1915, ch 102, art 1, § 24; RC 1919, § 8940; SDC 1939, § 6.0630; SDCL, § 51-14-64; SL 1969, ch 11, § 13.22; SL 1988, ch 377, § 184; SDCL, § 51-27-34.
S.D. Codified Laws § 51A-4-10 — SD Code / Title 51A / Chapter 4 / Section 51A-4-10
Property authorized to be purchased to satisfy debts--Limitation on period of retention
Status: in_force

A bank may, by itself or through a subsidiary, acquire, hold and convey property of any kind to satisfy debts previously contracted in good faith and in the ordinary course of business at a purchase price which is no greater than the aggregate of the debt, interest and other costs, provided that such property shall be held subject to the following limitations:

(1) Personal property held by the bank shall be sold within six months or such additional period not exceeding one year as the director may allow;

(2) Real property shall be sold within five years, unless an extension be granted by the director.

Source: SL 1891, ch 27, § 5; RCivC 1903, § 851; SL 1909, ch 222, art 2, § 16; SL 1915, ch 102, art 2, § 18; RC 1919, § 8965; SDC 1939, § 6.0410 (2), (3); SDCL, § 51-11-19; SL 1969, ch 11, § 4.5; SL 1970, ch 265, § 27; SL 1981, ch 346, § 30; SL 1988, ch 377, § 85; SDCL, § 51-18-5.
S.D. Codified Laws § 51A-6A-10 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-10
Statement of payment of capital--Certificate of organization
Status: in_force

When the capital of any trust company is paid in, the president or cashier shall transmit to the director a verified statement showing the names and addresses of all owners, the amount of stock or units each subscribed, and the amount paid in by each. The director shall review each trust company as to the amount of money paid in for capital and surplus, by whom the amounts were paid, the amount of capital stock or units owned in good faith by each owner, and whether the trust company has complied with the law. If the director determines that the trust company has been organized as required by law, has complied with the law, and has secured the required approval, the director shall issue a certificate stating that the trust company has been organized and its capital paid in as required by law, and that the trust company is authorized to transact trust business.

Source: SL 1995, ch 268, § 7; SL 2008, ch 258, § 7; SL 2019, ch 205, § 1.
S.D. Codified Laws § 51A-2-14.1 — SD Code / Title 51A / Chapter 2 / Section 51A-2-14.1
State chartered banks granted powers allowed federally chartered banks
Status: in_force

Notwithstanding any restrictions, limitations, and requirements of law, in addition to all powers, expressed or implied, that a state bank has under the laws of this state, a state bank shall have the powers and authorities conferred as of January 1, 2008, upon federally chartered banks doing business in this state. A state bank may exercise the powers and authorities conferred on a federally chartered bank after this date only if the director finds that the exercise of such powers and authorities:

(1) Serves the convenience and advantage of depositors, borrowers, or the general public; and

(2) Maintains the fairness of competition and parity between state chartered and federally chartered banks.

If the director finds that the before-mentioned conditions have been met, the director shall make a declaratory ruling allowing state banks the same powers and authorities.

As used in this section, powers and authorities, include, without limitation, powers and authorities in corporate governance and operational matters.

Source: SL 1999, ch 233, § 1; SL 2008, ch 252, § 6.
S.D. Codified Laws § 51A-19-3 — SD Code / Title 51A / Chapter 19 / Section 51A-19-3
Allegation--No duty to act
Status: in_force

Neither a financial institution, nor an employee of the institution is required to act under § 51A-19-2 when provided with information alleging that financial exploitation may have occurred, may have been attempted, is occurring, or is being attempted, but may use discretion to determine whether or not to act, based on the information available to the institution or the employee at the time.

Source: SL 2026, ch 194, § 3.
S.D. Codified Laws § 51A-14-5 — SD Code / Title 51A / Chapter 14 / Section 51A-14-5
Liquidation procedures in the event of reorganization
Status: in_force

If a bank has been merged or consolidated with another bank or the bank's assets have been purchased and the bank's liabilities assumed by another bank, in any instance other than an emergency, within thirty days thereafter, the directors of the bank shall institute proceedings to legally dissolve the bank's charter in the same manner as provided for voluntary liquidation in chapter 51A-15 . However, no notice need be given pursuant to § 51A-15-3 . Approval by the director of the merger, consolidation, or purchase of assets and assumption of liabilities constitutes approval of the voluntary liquidation as provided in § 51A-15-1 . However, the approval is subject to approval of the proposal to liquidate and dissolve by a vote of two-thirds of the outstanding stock of the liquidating bank at a meeting called for the purpose of considering such action.

Source: SL 1981, ch 346, § 66; SL 1988, ch 377, § 160; SL 1989, ch 411, § 4; SDCL § 51-26-5; SL 2015, ch 239, § 8.
S.D. Codified Laws § 51A-1-7 — SD Code / Title 51A / Chapter 1 / Section 51A-1-7
Injunction against violation
Status: in_force

Whenever a violation of this title by a bank or an officer, director, or employee thereof is threatened or pending, the director may make application pursuant to law for an injunction or other appropriate remedy.

Source: SL 1969, ch 11, § 1.5; SL 1988, ch 377, § 5; SDCL, § 51-15-5.