S.D. Codified Laws § 51A-10-7 — SD Code / Title 51A / Chapter 10 / Section 51A-10-7
Duty of depositor to examine statement of account and vouchers
Status: in_force

Nothing in § 51A-10-6 shall be construed to relieve the depositor from the duty imposed by law of exercising due diligence in the examination of such account and vouchers, if any, when rendered by the bank and of immediate notification to the bank upon discovery of any error therein, nor from the legal consequences of neglect of such duty; nor to prevent the application of § 57A-4-406 to cases governed thereby.

Source: SL 1963, ch 28, § 2; SDCL, § 51-10-20; SL 1969, ch 11, § 8.7; SL 1970, ch 265, § 45; SDCL, § 51-22-9.
S.D. Codified Laws § 51A-2-37 — SD Code / Title 51A / Chapter 2 / Section 51A-2-37
Examinations of parent corporations by director--Penalty for refusal to allow examination
Status: in_force

If the director considers it necessary, the director may examine the books and records of a corporation that holds twenty-five percent or more of the stock of a bank. If any parent corporation of a state chartered bank refuses to give any information required in the course of an examination, that parent corporation is subject to a civil fine of one thousand dollars for each day that the refusal continues. Continued refusal may result in the taking and possession of such bank as provided in § 51A-15-11 .

Source: SL 1969, ch 11, § 2.28; SL 1970, ch 265, § 15; SL 1980, ch 24, § 84; SL 1981, ch 346, § 18; SL 1983, ch 357; SL 1988, ch 377, § 51; SDCL § 51-16-38; SL 2008, ch 252, § 11.
S.D. Codified Laws § 51A-7-4 — SD Code / Title 51A / Chapter 7 / Section 51A-7-4
Establishment of branch banks
Status: in_force

A branch bank may be established de novo or by consolidating or merging with or purchasing the assets of another state bank, national bank or savings and loan association, or another federally insured financial institution.

Source: SL 1933 (SS), ch 2, § 2; SDC 1939, § 6.0402; SL 1957, ch 11; SDCL § 51-8-1; SL 1969, ch 11, § 6.4; SL 1978, ch 351; SL 1981, ch 346, § 41; SL 1990, ch 381; SDCL § 51-20-4; SL 2008, ch 252, § 30.
S.D. Codified Laws § 51A-17-117 — SD Code / Title 51A / Chapter 17 / Section 51A-17-117
Uniformity
Status: in_force

In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

Source: SL 2024, ch 196, § 66.
S.D. Codified Laws § 51A-5-2 — SD Code / Title 51A / Chapter 5 / Section 51A-5-2
Bank as trustee or custodian for retirement benefit plans
Status: in_force

Pursuant to rules of the commission and the terms of Public Law 93-406, the Employees Retirement Income Security Act of 1974 and the Self - employed Individuals Tax Retirement Act of 1962, a bank may act as trustee or custodian for individual retirement accounts, HR 10 Keogh accounts or both such accounts, or any other pension, profit - sharing, money purchase, or other retirement benefit plan.

Source: SDCL, § 51-19-1 as added by SL 1975, ch 291; SL 1981, ch 346, § 40; SL 1988, ch 377, § 110; SDCL, § 51-19-1.1.
S.D. Codified Laws § 51A-15-39 — SD Code / Title 51A / Chapter 15 / Section 51A-15-39
Priority of claims in liquidation proceedings
Status: in_force

The following claims shall have priority:

(1) First, public deposits that are subject to chapter 4-6A and § 51A-10-9 ;

(2) Then, obligations incurred by the director or receiver;

(3) Then, total deposits of each depositor;

(4) Then, all taxes due on a pro rata basis;

(5) Then, wages and salaries of officers and employees earned during the three - month period preceding the director's possession in an amount not exceeding the normal amount of compensation due;

(6) Then, fees and assessments due to the division on a pro rata basis;

(7) Then, all other claims on a pro rata basis exclusive of claims by holders of capital notes and debentures.

Source: SL 1969, ch 11, § 13.21 (1); SL 1988, ch 377, § 181; SL 1989, ch 411, § 5; SDCL, § 51-27-31.
S.D. Codified Laws § 51A-17-56 — SD Code / Title 51A / Chapter 17 / Section 51A-17-56
Examination or investigation by director--Production required--Costs
Status: in_force

(1) The director may conduct an examination or investigation of a licensee or authorized delegate or otherwise take independent action authorized by this chapter or by a rule adopted or order issued under this chapter as reasonably necessary or appropriate to administer and enforce this chapter, regulations implementing this chapter, and other applicable law, including the Bank Secrecy Act and other federal and state laws pertaining to money laundering. The director may:

(a) Conduct an examination either on-site or off-site as the director may reasonably require;

(b) Conduct an examination in conjunction with an examination conducted by representatives of other state agencies or agencies of another state or the federal government;

(c) Accept the examination report of another state agency or an agency of another state or the federal government, or a report prepared by an independent accounting firm, which on being accepted is considered for all purposes as an official report of the director; and

(d) Summon and examine under oath a key individual or employee of a licensee or authorized delegate and require the person to produce records regarding any matter related to the condition and business of the licensee or authorized delegate.

(2) A licensee or authorized delegate must provide, and the director must have full and complete access to, all records the director may reasonably require to conduct a complete examination. The records must be provided at the location and in the format specified by the director, provided the director may utilize multistate record production standards and examination procedures when such standards will reasonably achieve the requirements of this section.

(3) Unless otherwise directed by the director, a licensee must pay all costs reasonably incurred in connection with an examination of the licensee or the licensee's authorized delegates.

Source: SL 2024, ch 196, § 5.
S.D. Codified Laws § 51A-13-3 — SD Code / Title 51A / Chapter 13 / Section 51A-13-3
Failure to report--Civil penalty
Status: in_force

Any bank failing to make and transmit to the director any report as required by this title, is subject to a civil penalty of fifty dollars for each day during which such failure continues; and if any bank fails or refuses to pay such penalty, the director shall institute proceedings for the recovery thereof.

Source: SDC 1939, § 6.0435; SDCL, § 51-12-6; SL 1969, ch 11, § 11.4; SL 1970, ch 265, § 58; SL 1980, ch 24, § 88; SDCL, § 51-25-4; SL 1995, ch 269, § 2.
S.D. Codified Laws § 51A-5-16 — SD Code / Title 51A / Chapter 5 / Section 51A-5-16
Custodian to certify deposited securities to fiduciary--Duty of fiduciary
Status: in_force

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 with the federal reserve bank for the account of the fiduciary. A fiduciary shall, on demand by any party to which it must account or on demand by the attorney for the party, certify in writing to the party the securities deposited by the fiduciary with the federal reserve bank for its account as the fiduciary.

Source: SDCL, § 51-19-7 as added by SL 1975, ch 292, § 1; SDCL, § 51-19-7.3; SL 1995, ch 268, § 73; SL 1997, ch 272, § 11; SL 2021, ch 203, § 4.
S.D. Codified Laws § 51A-6A-67 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-67
Trust company receivership and liquidation captive insurance company fund
Status: in_force

There is hereby established in the state treasury the trust company receivership and liquidation captive insurance company fund. The Department of Labor and Regulation may enter into an agreement with a captive insurance company for the management of the fund. Money in the fund may be used to pay for trust company receivership and liquidation costs for trust companies chartered and regulated by the Division of Banking as well as administrative and reinsurance costs for the fund. Interest earned on money in the fund shall be deposited into the fund. Unexpended money and any interest that may be credited to the fund shall remain in the fund. Any money in the trust company receivership and liquidation captive insurance company fund is continuously appropriated. Any money deposited into and distributed from the fund shall be set forth in an informational budget as described in § 4-7-7.2 .

Source: SL 2016, ch 228, § 4; SDCL § 51A-6-23 .
S.D. Codified Laws § 51A-15-13 — SD Code / Title 51A / Chapter 15 / Section 51A-15-13
Receipt of deposits by insolvent bank unlawful--Felony
Status: in_force

No bank may receive any deposit when insolvent. No officer, director or employee who knows, or in the proper performance of his duty should know, of such insolvency may receive or authorize the receipt of such deposit. Any person violating this section shall be guilty of a Class 5 felony.

Source: SL 1891, ch 27, § 25; RCivC 1903, § 871; SL 1909, ch 222, art 2, § 45; SL 1911, ch 255, § 12; SL 1915, ch 102, art 2, § 49; RC 1919, §§ 8998, 9042; SDC 1939, § 6.9909; SDCL, § 51-10-3; SL 1969, ch 11, § 1.7; SL 1970, ch 265, § 1; SL 1980, ch 24, § 77; SDCL, § 51-15-7; SL 1988, ch 377, § 6; SDCL, § 51-27-10.2.
S.D. Codified Laws § 51A-3-30 — SD Code / Title 51A / Chapter 3 / Section 51A-3-30
Adoption and approval of bylaws
Status: in_force

Every bank shall adopt a code of bylaws before being authorized to commence business. Bylaws, as well as all amendments or additions thereto, so adopted shall be effective only after they have been approved by the director. After their adoption and approval they shall be spread at length upon the minute book of the bank and be subject to such rights of inspection as exist for other corporate books and records.

Source: SL 1909, ch 222, art 2, § 12; SL 1915, ch 102, art 2, § 14; RC 1919, § 8960; SDC 1939, § 6.0313; SDCL, § 51-3-12; SL 1969, ch 11, § 3.24; SDCL, § 51-17-27.
S.D. Codified Laws § 51A-6A-48 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-48
Contents of notice of proposed acquisition
Status: in_force

A notice of a proposed trust company acquisition shall contain, in the form prescribed by the director, the following information:

(1) The identity, personal history, business background, and experience of any person by whom or on whose behalf the acquisition is to be made, including the person's material business activities and affiliations during the past five years and a description of any material pending legal or administrative proceedings in which the person is a party and any criminal indictment or conviction of the person by a state or federal court;

(2) A statement of the assets and liabilities of any person by whom or on whose behalf the acquisition is to be made, as of the end of the fiscal year for each of the five fiscal years immediately preceding the date of the notice, together with related statements of income and source and application of funds for each of the fiscal years then concluded and an interim statement of the assets and liabilities for any person, together with related statements of income and source and application of funds, as of a date not more than ninety days prior to the date of the notice;

(3) The terms and conditions of the proposed acquisition and the manner in which the acquisition is to be made;

(4) The identity, source, and amount of the funds or other considerations used or to be used in making the acquisition and, if any part of these funds or other considerations has been or is to be borrowed or otherwise obtained for the purpose of making the acquisition, a description of the transaction, the names of the parties to the transaction, and any arrangements, agreements, or understandings with such persons;

(5) Any plans or proposals which any acquiring person making the acquisition may have to liquidate the trust company, to sell its assets or merge it with any company, or to make any other major change in its business or corporate structure or management;

(6) The identification of any person employed, retained, or to be compensated by the acquiring person or by any person on the acquiring person's behalf to make solicitations or recommendations to owners for the purpose of assisting in the acquisition and a brief description of the terms of the employment, retainer, or arrangement for compensation;

(7) Copies of all invitations or tenders or advertisements making a tender offer to owners for purchase of their stock or ownership units to be used in connection with the proposed acquisition; and

(8) Any additional relevant information in such forms as the directors may require by specific request in connection with any particular notice.

Source: SL 1995, ch 268, § 46.
S.D. Codified Laws § 51A-2-16 — SD Code / Title 51A / Chapter 2 / Section 51A-2-16
Applications to organize or change control of bank, to merge, to open or close branch banks, or to change location
Status: in_force

The director shall act on an application to organize or change control of a bank; an application for a bank merger; an application to open or close a branch bank, mobile branch bank, or loan production office; or an application to change a bank's location. After the filing of a completed application deemed acceptable to the director, the director shall cause a public notice of the application to be published in a newspaper of general circulation serving the community most directly affected by the application together with any other means of notification to interested persons as the director may determine appropriate.

The notice shall direct that any interested persons may file a written objection or written comment to the application with the division within fifteen days following the date of publication. Within thirty days following the date of publication, the director shall consider any written objection and written comment and, in accordance with § 51A-3-9 , either approve or disapprove the application. The director shall provide written notice of the director's action on the application to the applicant and to any person having filed with the division a written objection or written comment by mail to the person's last known address.

An applicant aggrieved by the director's action on the application, may, within fifteen days after the notice has been mailed, file with the division a written request for a hearing before the commission. Any person who has filed a written objection to the application may, within fifteen days after the notice has been mailed, file a motion with the commission, in accordance with § 1-26-17.1 , to become a party to the application proceeding and request a hearing before the commission. Unless the commission grants the motion or unless the applicant has filed a written request for hearing before the commission, the director's determination on the application is final.

All proceedings before the commission on an application shall be held in conformance with chapter 1-26 . If the application involves establishment of any type of competitive banking service in the trade territory of a bank in which any banking commissioner is interested, the commissioner shall be deemed disqualified, and the commission shall be recomposed as provided in § 51A-2-11 .

Source: SDC 1939, § 6.0205 (4); SL 1966, ch 12; SDCL §§ 51-2-20, 51-2-21; SL 1969, ch 11, § 2.13 (3); SL 1988, ch 377, § 29; SDCL § 51-16-15; SL 1995, ch 266; SL 1998, ch 278, § 2; SL 2008, ch 252, § 7; SL 2017, ch 203, § 1.
S.D. Codified Laws § 51A-1-3 — SD Code / Title 51A / Chapter 1 / Section 51A-1-3
Adverse claims against bank deposits, contents of safe deposit box or property in safekeeping
Status: in_force

Notice to any bank of an adverse claim to a deposit or other item standing on its books to the credit of any person, or to the contents of a safe deposit box or property held in safekeeping, shall not be sufficient to cause said bank to recognize such adverse claim unless:

(1) In the case of a deposit, the adverse claimant shall execute and deliver to such bank, in form and with sureties acceptable to it, a bond indemnifying such bank from any and all liability on account of the recognition by the bank of such adverse claim, or unless such adverse claim is made through acts or proceedings pursuant to law;

(2) In the case of a safe deposit box, such box is leased or the property is held in the name of the lessee under a written instrument designating that the contents constitute property held in a fiduciary capacity, and the adverse claim is supported by a verified statement of facts disclosing that it is made by or on behalf of a beneficiary or other person having an interest therein and that there is good cause to believe that the contents thereof are in danger of misappropriation, unless the bank is directed to do so by a court order.

Source: SL 1927, ch 55; SDC 1939, § 6.0416; SDCL, § 51-10-12; SL 1969, ch 11, § 1.2; SDCL, § 51-15-2.
S.D. Codified Laws § 51A-3-20 — SD Code / Title 51A / Chapter 3 / Section 51A-3-20
Recovery of dividends paid when capital impaired
Status: in_force

Dividends paid to any stockholder of a bank, which shall in any way impair or diminish the capital, may be recovered from any stockholder receiving the same unless the capital impairment be subsequently made good. The directors of any bank, who pay a dividend when the bank is insolvent or in danger of insolvency, or when there are not sufficient net profits available, or when the bank is subject to an order pursuant to § 51A-2-26 prohibiting the payment of dividends, shall be jointly and severally liable to the creditors of the bank in existence at that time in double the amount of such dividend.

Source: SL 1909, ch 222, art 2, § 37; SL 1915, ch 102, art 2, § 41; RC 1919, § 8989; SDC 1939, § 6.0440; SDCL, §§ 51-4-25, 51-4-27; SL 1969, ch 11, § 3.9; SDCL, § 51-17-10; SL 1988, ch 377, § 61; SDCL, § 51-17-20.5.
S.D. Codified Laws § 51A-6A-45 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-45
Powers and duties of receiver--Order of payment of liabilities
Status: in_force

The receiver, under the direction of the director, shall take charge of any insolvent trust company and all of its assets and property and liquidate the affairs and business for the benefit of clients, creditors, and owners. The receiver may sell or compound all bad and doubtful debts and sell all the property of the trust company upon such terms as the circuit court of the county in which the trust company is located approves. The receiver shall pay over all moneys received to the creditors of the trust company as ordered by the director. In distributing assets of an insolvent trust company in payment of its liabilities, the order of payment, if its assets are insufficient to pay in full all of its liabilities, shall be by category as follows:

(1) The costs and expenses of the receivership and real and personal property taxes assessed against the trust company pursuant to applicable law;

(2) Claims which are secured or given priority by applicable law;

(3) Claims of unsecured creditors;

(4) All other claims exclusive of claims on capital notes and debentures; and

(5) Claims on capital notes and debentures.

If the assets are insufficient for the payment in full of all claims within a category, the claims shall be paid in the order provided by other applicable law or, in the absence of such applicable law, pro rata.

Source: SL 1995, ch 268, § 43.
S.D. Codified Laws § 51A-17-104 — SD Code / Title 51A / Chapter 17 / Section 51A-17-104
Expiration of letter of credit--Funds held in trust by director
Status: in_force

In the event of any notice of expiration or non-extension of a letter of credit issued under subdivision 51A-17-102 (4), the licensee shall be required to demonstrate to the satisfaction of the director, fifteen days prior to expiration, that the licensee maintains and will maintain permissible investments in accordance with subdivision 51A-17-101 (1) upon the expiration of the letter of credit. If the licensee is not able to do so, the director may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments in accordance with subdivision 51A-17-101 (1). Any such draw shall be offset against the licensee's outstanding money transmission obligations. The drawn funds shall be held in trust by the director or the director’s designated agent, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations.

Source: SL 2024, ch 196, § 53.
S.D. Codified Laws § 51A-12-15 — SD Code / Title 51A / Chapter 12 / Section 51A-12-15
Compounding interest and service fees
Status: in_force

A bank may compound the interest or service fees charged on loans when disclosed in writing to the borrower.

Source: SL 1981, ch 346, § 62; SDCL, § 51-24-16.
S.D. Codified Laws § 51A-15-11 — SD Code / Title 51A / Chapter 15 / Section 51A-15-11
Director's authority to suspend activities and take possession of bank--Grounds
Status: in_force

After a hearing with three days' oral or written notice to a majority of the members of the board of directors, the director may, with the consent of a majority of the members of the commission, suspend all activities and take possession of the business and property of a bank if the director finds:

(1) The bank's capital is impaired or the bank is otherwise in an unsound condition;

(2) The bank's business is being conducted in an unlawful or unsound manner;

(3) The bank is unable to continue normal operations;

(4) The bank refuses to permit, obstructs, or impedes an examination as provided in § 51A-2-18 ;

(5) The bank places its affairs and assets under the control of the director;

(6) A parent corporation refuses to permit, obstructs, or impedes an examination as provided in § 51A-2-37 ;

(7) The bank is insolvent; or

(8) The bank's insurance has been terminated pursuant to an action initiated by the Federal Deposit Insurance Corporation under 12 U.S.C. § 1818(a), as of January 1, 2015.

Source: SL 1909, ch 222, art 1, § 9; SL 1909, ch 222, art 2, § 20; SL 1911, ch 256, §§ 9, 26; SL 1915, ch 102, art 1, § 9; SL 1915, ch 102, art 2, § 23; RC 1919, §§ 8925, 8970, 9056; SDC 1939, § 6.0604; SDCL § 51-14-11; SL 1969, ch 11, § 13.5; SL 1970, ch 265, § 65; SL 1981, ch 346, § 68; SL 1982, ch 336, § 2; SL 1988, ch 377, § 165; SDCL § 51-27-10; SL 2015, ch 239, § 9.
S.D. Codified Laws § 51A-9-4 — SD Code / Title 51A / Chapter 9 / Section 51A-9-4
Ownership of bank or bank holding company stock prohibited
Status: in_force

No bank service corporation may purchase, hold or acquire the capital stock of any state or national bank or of any bank holding company.

Source: SL 1970, ch 265, § 41; SL 1988, ch 377, § 133; SDCL, § 51-21-3.1.
S.D. Codified Laws § 51A-6A-51 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-51
Necessity of execution or delivery of deed for merger or consolidation
Status: in_force

When a merger or consolidation of any trust company occurs, the successor consolidated trust company or bank becomes the owner of, and entitled to, the possession of all rights, franchises, and interests, real estate, and personal property as is covered by the merger or consolidation agreement without the necessity of the execution or delivery of a deed or other form of transfer.

Source: SL 1995, ch 268, § 49.
S.D. Codified Laws § 51A-17-71 — SD Code / Title 51A / Chapter 17 / Section 51A-17-71
License revocation or suspension--Compliance required
Status: in_force

Maintenance of License.

(1) If a licensee does not continue to meet the qualifications or satisfy the requirements that apply to an applicant for a new money transmission license, the director may suspend or revoke the licensee's license in accordance with the procedures established by this chapter or other applicable state law for the suspension or revocation.

(2) An applicant for a money transmission license must demonstrate that it meets or will meet, and a money transmission licensee must at all times meet, the requirements in §§ 51A-17-99 to 51A-17-101 , inclusive.

Source: SL 2024, ch 196, § 20.
S.D. Codified Laws § 51A-6A-22 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-22
Increasing capital stock or ownership units
Status: in_force

The capital stock or ownership units of any trust company may be increased. The president and cashier shall forward a verified statement to the director showing the amount of the increase, the names and addresses of the subscribers, the amount subscribed by each, and that the same had been paid in full to the trust company. The date and amount of the increase also shall be certified to the secretary of state.

Source: SL 1995, ch 268, § 20.
S.D. Codified Laws § 51A-11-4 — SD Code / Title 51A / Chapter 11 / Section 51A-11-4
Power of attorney
Status: in_force

Where a lessor without knowledge of the death or of an adjudication of legal incompetence of the lessee, deals with his agent pursuant to a written power of attorney signed by such lessee, the transaction binds the lessee's estate and the lessee.

Source: SL 1969, ch 11, § 9.4; SDCL, § 51-23-4.
S.D. Codified Laws § 51A-15-25 — SD Code / Title 51A / Chapter 15 / Section 51A-15-25
Execution of lien on assets of bank in director's or receiver's possession prohibited--Powers of director
Status: in_force

No judgment, lien or attachment may be executed upon any asset of the bank while it is in possession of the director. Upon the election of the director or receiver in connection with a liquidation or reorganization:

(1) Any lien or attachment, other than an attorney's or mechanic's lien, obtained upon any asset of the bank during the director's possession or within four months prior to commencement thereof shall be vacated except liens created by the director while in possession.

(2) Any transfer of an asset of the bank made after or in contemplation of its insolvency with intent to effect a preference shall be voided.

Source: SL 1909, ch 222, art 1, § 12; SL 1911, ch 256, § 25; SL 1915, ch 102, art 1, § 22; RC 1919, § 8938; SL 1925, ch 94; SL 1929, ch 74; SDC 1939, § 6.0620; SDCL, § 51-14-30; SL 1969, ch 11, § 13.8; SL 1988, ch 377, § 170; SDCL, § 51-27-17.
S.D. Codified Laws § 51A-15-38 — SD Code / Title 51A / Chapter 15 / Section 51A-15-38
Partial distributions to claim holders authorized--Final distribution
Status: in_force

After filing his schedule the director or receiver may, from time to time, make partial distribution to the holders of claims which are undisputed or have been allowed by the court, if a proper reserve is established for the payment of disputed claims. As soon as is practicable after the determination of all objections the director or receiver shall make final distribution.

Source: SL 1911, ch 256, §§ 16, 21, 22; SL 1915, ch 102, art 1, §§ 18 to 20; RC 1919, §§ 8934 to 8936; SL 1919, ch 118; SDC 1939, § 6.0618; SDCL, § 51-14-53; SL 1969, ch 11, § 13.20; SL 1988, ch 377, § 180; SDCL, § 51-27-30.
S.D. Codified Laws § 51A-18-12 — SD Code / Title 51A / Chapter 18 / Section 51A-18-12
Fraud and money laundering prevention--Policy
Status: in_force

A licensee shall take reasonable steps to detect and prevent fraud and money laundering, including establishing and maintaining a written anti-fraud policy and complying with the requirements of the Bank Secrecy Act, 31 U.S.C. §§ 5311 to 5336, inclusive (January 1, 2026).

The policy must include:

(1) Mechanisms to identify and assess risks associated with fraud and money laundering;

(2) Controls and procedures to protect against identified risks;

(3) An allocation of responsibility for monitoring risks; and

(4) Procedures for the periodic evaluation and revision of the policy's procedures, controls, monitoring, and other mechanisms.

Source: SL 2026, ch 193, § 12.
S.D. Codified Laws § 51A-5-8 — SD Code / Title 51A / Chapter 5 / Section 51A-5-8
Reciprocal privileges extended to foreign bank or trust company acting as fiduciary
Status: in_force

A bank or trust company organized and doing trust business under the laws of any state or territory of the United States of America, including the District of Columbia, other than South Dakota, and a national bank, duly authorized so to act, may be appointed and may serve in this state as trustee, whether of a corporation or personal trust, personal representative, guardian, conservator, or committee for an incompetent person, or in any other fiduciary capacity, whether the appointment is by will, deed, court order, or decree, or otherwise, when and to the extent that the state, territory, or district in which the bank or trust company is organized or has its principal place of business grants authority to serve in like fiduciary capacities to a bank or trust company organized and doing business under the laws of this state.

Source: SL 1973, ch 292, § 1; SL 1988, ch 377, § 114; SDCL § 51-19-5.2; SL 1995, ch 268, § 68; SL 1997, ch 272, § 6.
S.D. Codified Laws § 51A-5-1 — SD Code / Title 51A / Chapter 5 / Section 51A-5-1
Use of "trust" in name restricted--Exercise of trust powers restricted--Misdemeanor
Status: in_force

No person may assume or use the word "trust" in such person's name in any manner which infers or suggests that the person has authority to transact such business unless the person is authorized to transact trust business pursuant to this title. A violation of this paragraph is a Class 2 misdemeanor.

No bank may exercise trust powers unless it is so authorized by its articles of incorporation and approved by the director and it has qualified by making the deposit required by § 51A-5-4 . Any person who exercises trust powers in violation of this section is guilty of a Class 2 misdemeanor.

Source: SDC 1939, §§ 6.0504, 6.9906; SDCL § 51-7-1; SL 1969, ch 11, § 5.1; SL 1970, ch 265, § 35; SL 1975, ch 291; SL 1980, ch 24, § 86; SL 1988, ch 377, § 109; SL 1990, ch 158, § 5; SL 1990, ch 158, § 5; SDCL § 51-19-1; SL 1994, ch 364, § 1; SL 2008, ch 258, § 1.
S.D. Codified Laws § 51A-2-33 — SD Code / Title 51A / Chapter 2 / Section 51A-2-33
Secrecy oath of commissioners, director and division officers and employees--Exceptions to secrecy requirements
Status: in_force

Before entering upon the discharge of his duties, each member of the commission, the director, and all officers and employees of the division shall take an oath to keep secret all facts and information obtained in the discharge of his official duties, except:

(1) As the public duty of such officer or appointee requires him to report upon or take special action regarding the affairs of any bank;

(2) Information with reference to a suspended bank which may be made public if, in the discretion of the director, it is to the best interests of the creditors thereof;

(3) If called as a witness in a court or before any committee of either house of the Legislature;

(4) The director or any of his appointees may disclose to the federal reserve board, the Federal Deposit Insurance Corporation, or the office of the comptroller of the currency, or the examiners appointed by them, all information with reference to the affairs of any state bank which is insured by the Federal Deposit Insurance Corporation, and to this end, the director, the federal reserve board, the Federal Deposit Insurance Corporation, and the office of the comptroller of the currency may exchange reports of examinations made by them;

(5) The director may disclose reports of examinations to other state banking agencies on a reciprocal basis. Five days prior to the release of such reports, the director shall inform the chief executive officer and board of directors of the bank whose report is being released of the director's intention to make the release and of the name of the agency to which the report will be released.

A violation of the oath is a Class 2 misdemeanor.

Source: SL 1909, ch 222, art 1, § 7; SL 1911, ch 256, § 7; SL 1915, ch 102, art 1, § 7; SL 1917, ch 140, § 3; RC 1919, § 8923; SL 1919, ch 120; SL 1931, ch 89; SL 1935, ch 55; SDC 1939, § 6.0203; SDCL, § 51-2-12; SL 1969, ch 11, § 2.23; SL 1980, ch 24, § 83; SL 1981, ch 346, § 17; SL 1988, ch 377, § 48; SDCL, § 51-16-33.
S.D. Codified Laws § 51A-17-102 — SD Code / Title 51A / Chapter 17 / Section 51A-17-102
Permissible investments described
Status: in_force

The following investments are permissible under § 51A-17-101 :

(1) Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers in a federally-insured depository financial institution, and cash equivalents, including ACH items in transit to the licensee and ACH items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by any bank, or money market mutual funds rated "AAA" by S&P, or the equivalent from any eligible rating service;

(2) Certificates of deposit or senior debt obligations of an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813 (January 1, 2024) or as defined under the federal Credit Union Act, 12 U.S.C. § 1781 (January 1, 2024);

(3) An obligation of the United States or a commission, agency, or instrumentality thereof; an obligation that is guaranteed fully as to principal and interest by the United States; or an obligation of a state or a governmental subdivision, agency, or instrumentality thereof;

(4) The full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the director that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds up to the letter of credit amount within seven days of presentation of the items required by § 51A-17-105 ; and

(5) One hundred percent of the surety bond or deposit provided for under § 51A-17-100 that exceeds the average daily money transmission liability in this state.

Source: SL 2024, ch 196, § 51.
S.D. Codified Laws § 51A-17-109 — SD Code / Title 51A / Chapter 17 / Section 51A-17-109
Virtual currency
Status: in_force

A licensee transmitting virtual currencies shall hold like-kind virtual currencies of the same volume as that held by the licensee but that is obligated to consumers, in lieu of the permissible investments otherwise required in this chapter.

Source: SL 2024, ch 196, § 58.
S.D. Codified Laws § 51A-7-26 — SD Code / Title 51A / Chapter 7 / Section 51A-7-26
Promulgation of rules to establish fees
Status: in_force

The commission may promulgate rules pursuant to chapter 1-26 to establish the fees provided by §§ 51A-7-13 to 51A-7-15 , inclusive, and to provide the necessary forms to administer §§ 51A-7-13 to 51A-7-25 , inclusive.

Source: SL 1996, ch 280, § 14; SL 2021, ch 204, § 5.
S.D. Codified Laws § 51A-6A-17 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-17
Persons convicted of certain crimes ineligible to serve as board member, officer, or key employee--Civil penalty--Criminal background investigation
Status: in_force

Except with the written consent of the director, no person may serve as a board member, officer, or key employee of a trust company who has been convicted of any felony or any crime involving fraud, dishonesty, or a breach of trust. Any trust company who willfully violates this prohibition is subject to a civil penalty of one thousand dollars for each day the violation continues. A civil penalty imposed pursuant to this section for a single violation may not exceed fifty thousand dollars. Any civil penalty imposed by the director under this section is subject to review by the commission in accordance with chapter 1-26 .

As part of any application to obtain authority to transact business as a private trust company, the applicant shall obtain and provide for each proposed incorporator, organizer, board member, manager, officer, and key employee of the proposed company, as applicable, the results of an independent criminal background investigation acceptable to the director, and independent credit report from a consumer reporting agency as described in 15 U.S.C. 1681a(p) as of January 1, 2010, and a report of ongoing or pending litigation.

As part of any application to obtain authority to transact trust company business as a public trust company, each proposed incorporator, organizer, board member, manager, officer, and key employee, as applicable, shall submit to a state and federal criminal background investigation by means of fingerprint checks by the Division of Criminal Investigation and the Federal Bureau of Investigation. Upon application, the division shall submit completed fingerprint cards to the Division of Criminal Investigation for purposes of conducting both the state and federal criminal background investigation. Upon completion of the criminal background check, the Division of Criminal Investigation shall forward to the division all information obtained as a result of the criminal background investigation. For any person described above who is not a citizen of the United States, the director may conduct an international background investigation or require the applicant or person to obtain and provide the results of an international background investigation acceptable to the director. The applicant shall also obtain and provide the results of an independent credit report from a consumer reporting agency as described in 15 U.S.C. 1681a(p) as of January 1, 2010, and a report of ongoing or pending litigation for each person as described above.

Prior to beginning employment with any trust company, each potential director, manager, member, officer, or key employee shall undergo the same investigation process as required above for new applicants. At the discretion of the director, any person subject to the requirements of this section may enter into service on a temporary basis pending receipt of results from the criminal background investigation. For purposes of this section, a key employee does not include an employee whose primary responsibilities are limited to clerical or support duties, and officer does not include any person who is not involved in the ongoing policy making or management of the trust company.

Any trust company shall immediately notify the division of any material change in the background of any person subject to the background investigation process as described above.

The division may require a fingerprint-based state, federal, and international criminal background investigation, as applicable, for any director, officer, or employee, who is the subject of an investigation by the division. Failure to submit to or cooperate with the criminal background investigation is grounds for the denial of an application or may result in the revocation of a trust company's authority to transact trust company business.

The applicant or trust company, as the case may be, shall pay any fees or costs associated with the fingerprinting, background investigations, or reports required by this section. A person who has undergone a state, federal, or international background investigation required by this section, may, at the discretion of the director, be allowed to fulfill this requirement for future trust company employment by sworn affidavit stating that there have been no material changes to the person's background.

Source: SL 1995, ch 268, § 15; SL 2010, ch 232, § 19; SL 2012, ch 252, § 16; SL 2013, ch 239, § 1.
S.D. Codified Laws § 51A-3-17.1 — SD Code / Title 51A / Chapter 3 / Section 51A-3-17.1
Dividends--Definition
Status: in_force

For the purposes of this chapter, dividends are any distribution of funds made by the bank to a shareholder from current or accumulated earnings except for fees or salaries.

Source: SL 1998, ch 279, § 1.
S.D. Codified Laws § 51A-2-15 — SD Code / Title 51A / Chapter 2 / Section 51A-2-15
Considerations of commission in making rules and regulations
Status: in_force

In making rules, the commission shall act in the interests of promoting and maintaining a sound banking system; securing deposits, depositors and other customers; preserving the liquid position of banks; promoting the competitive equality of state - chartered banks with national banks and other financial institutions in all aspects of banking practices and permitted nonbanking activities; and preventing injurious credit expansions and contractions.

Source: SL 1969, ch 11, § 2.29; SL 1981, ch 346, § 19; SDCL, § 51-16-39; SL 1988, ch 377, § 52; SDCL, § 51-16-14.2.
S.D. Codified Laws § 51A-4-30 — SD Code / Title 51A / Chapter 4 / Section 51A-4-30
Investment in federally sponsored housing loans
Status: in_force

Banks and trust companies authorized to do business under this title that are approved or certified by the secretary of housing and urban development or approved or certified by the administrator of veterans affairs may:

(1) Make such loans and advances of credit and purchases of obligations representing loans and advances of credit as are eligible for insurance by the federal housing administration or the administrator of veterans affairs and to obtain such insurance;

(2) Make such loans, secured by real property or leasehold, as the federal housing administration or the administrator of veterans affairs insures or makes a commitment to insure and to obtain such insurance.

Source: SL 1935, ch 112, § 1; SL 1937, ch 161, § 1; SDC 1939, § 55.4401; SDCL, § 51-11-3; SL 1970, ch 266; SL 1988, ch 377, § 100; SDCL, § 51-18-25.
S.D. Codified Laws § 51A-4-29 — SD Code / Title 51A / Chapter 4 / Section 51A-4-29
Banks authorized to make or purchase loans secured by real estate mortgages--Sale of loans to Federal National Mortgage Association--Capital contributions
Status: in_force

A bank or other banking organization, organized under the laws of this state, which has as one of its principal purposes the making or purchasing of loans secured by real estate mortgages, may make real estate mortgage loans in any form, including but not limited to variable rate mortgages, collateral real estate mortgages, renegotiated rate mortgages, and shared appreciation mortgages, unless otherwise prohibited by law and may, notwithstanding any other provision of law, sell such mortgage loans to the Federal National Mortgage Association, a corporation chartered by an act of Congress, or any successor thereof, and in connection therewith may make payments of any capital contributions, required pursuant to law, in the nature of subscriptions for stock of the Federal National Mortgage Association or any successor thereof, and may receive stock evidencing such capital contributions, and hold or dispose of such stock.

Source: SL 1955, ch 231; SDC Supp 1960, § 39.0309; SDCL, § 51-11-2; SL 1981, ch 346, § 37; SDCL, § 51-18-24; SL 1995, ch 268, § 65.
S.D. Codified Laws § 51A-6A-61 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-61
Membership in federal reserve bank
Status: in_force

Any trust company may become a stockholder in and a member of the federal reserve bank of the federal reserve district where the trust company is located.

Source: SL 1995, ch 268, § 59.
S.D. Codified Laws § 51A-12-10 — SD Code / Title 51A / Chapter 12 / Section 51A-12-10
Sale of surplus federal reserve funds and excess bank funds not loan
Status: in_force

The sale of surplus federal reserve funds and excess bank funds is not considered loans or obligations and are not subject to any limitation based on capital stock and surplus.

Source: SL 1969, ch 11, § 10.4; SDCL, § 51-24-7; SL 1988, ch 377, § 146; SDCL, § 51-24-9.2.
S.D. Codified Laws § 51A-17-88 — SD Code / Title 51A / Chapter 17 / Section 51A-17-88
Filing of reports required by federal law
Status: in_force

A licensee and its authorized delegates must file all reports required by federal currency reporting, record keeping, and suspicious activity reporting requirements as set forth in the Bank Secrecy Act and other federal and state laws pertaining to money laundering. The timely filing of a complete and accurate report required under this section with the appropriate federal agency is deemed compliant with the requirements of this section.

Source: SL 2024, ch 196, § 37.
S.D. Codified Laws § 51A-17-59 — SD Code / Title 51A / Chapter 17 / Section 51A-17-59
License required to engage in money transmission--Exceptions
Status: in_force

(1) A person may not engage in the business of money transmission or advertise, solicit, or hold itself out as providing money transmission unless the person is licensed under this chapter.

(2) This section does not apply to:

(a) A person that is an authorized delegate of a person licensed under this chapter acting within the scope of authority conferred by a written contract with the licensee; or

(b) A person that is exempt pursuant to § 51A-17-53 and does not engage in money transmission outside the scope of such exemption.

(3) A license issued under §§ 51A-17-64 to 51A-17-69 , inclusive, is not transferable or assignable.

Source: SL 2024, ch 196, § 8.
S.D. Codified Laws § 51A-15-20 — SD Code / Title 51A / Chapter 15 / Section 51A-15-20
Postponement of limitation periods on director's taking actions
Status: in_force

When the director has caused the suspension and taken possession of a bank, there shall be a postponement until six months after the commencement of such possession actions of the date upon which any period of limitation fixed by a statute or agreement would otherwise expire on a claim or right of action of the bank, or upon which an appeal must be taken or a pleading or other document must be filed by the bank in any pending action or proceeding.

Source: SL 1969, ch 11, § 13.6 (3); SL 1988, ch 377, § 167; SDCL, § 51-27-13.
S.D. Codified Laws § 51A-6A-16 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-16
Oath of board members
Status: in_force

Each board member shall take and subscribe an oath that the member will administer the affairs of the trust company diligently and honestly and that the member will not knowingly or willfully permit any of the laws relating to trust companies to be violated.

Source: SL 1995, ch 268, § 14.
S.D. Codified Laws § 51A-6A-29 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-29
Powers of trust company
Status: in_force

A trust company may exercise the following powers necessary or incidental to carrying on a trust company business, including:

(1) Act as agent, custodian, or attorney-in-fact for any person, and, in such capacity, take and hold property on deposit for safekeeping and act as general or special agent or attorney-in-fact in the acquisition, management, sale, assignment, transfer, encumbrance, conveyance, or other disposition of property, in the collection or disbursement of income from or principal of property, and generally in any matter incidental to any of the foregoing;

(2) Act as registrar or transfer agent for any corporation, partnership, association, limited liability company, municipality, state, or public authority, and in such capacity, receive and disburse money, transfer, register, and countersign certificates of stock, bonds, or other evidences of indebtedness or securities, and perform any acts which may be incidental thereto;

(3) Act as trustee or fiduciary under any mortgage or bond issued by a person;

(4) Act as trustee or fiduciary under any trust established by a person;

(5) Act as fiduciary, assignee for the benefit of creditors, receiver, or trustee under or pursuant to the order or direction of any court or public official of competent jurisdiction;

(6) Act as fiduciary, guardian, conservator, assignee, or receiver of the estate of any person and as executor of the last will and testament or administrator, fiduciary, or personal representative of the estate of any deceased person when appointed by a court or public official of competent jurisdiction;

(7) Establish and maintain common trust funds or collective investment funds pursuant to the provisions of chapter 55-6 ; or

(8) Act in any fiduciary capacity and perform any act as a fiduciary which a South Dakota bank with trust powers may perform in the exercise of those trust powers.

Source: SL 1995, ch 268, § 27; SL 2011, ch 212, § 21; SL 2014, ch 226, § 1.
S.D. Codified Laws § 51A-7-10 — SD Code / Title 51A / Chapter 7 / Section 51A-7-10
Limitation on functions of detached drive-in facility
Status: in_force

The only banking services which may be offered or rendered to the public at any detached drive - in facility are services comparable to those customarily performed by a bank teller in a bank. No loan or discount services shall be offered or rendered to the public at any detached drive - in facility except that loan payments may be made and accepted at such facility.

Source: SL 1965, ch 21, § 6; SDCL, § 51-8-13; SL 1969, ch 11, § 6.11; SDCL, § 51-20-11.
S.D. Codified Laws § 51A-12-8 — SD Code / Title 51A / Chapter 12 / Section 51A-12-8
Liability of officers and directors for excessive loans
Status: in_force

The issuing officer, the chief executive or managing officer and the board of directors of a bank shall be held personally liable for all excessive loans, until they are in compliance, including overdrafts which could create excess. Such liability shall remain in effect for so long as any such loans may be in excess of the amount limited by law.

Source: SL 1909, ch 222, art 2, § 38; SL 1915, ch 102, art 2, § 42; RC 1919, § 8990; SDC 1939, § 6.0431; SDCL, § 51-11-11; SL 1969, ch 11, § 10.6; SL 1981, ch 346, § 55; SL 1988, ch 377, § 149; SDCL, § 51-24-9.
S.D. Codified Laws § 51A-5-21 — SD Code / Title 51A / Chapter 5 / Section 51A-5-21
Deposit in clearing corporation of securities held as fiduciary or custodian
Status: in_force

Any fiduciary holding securities in its fiduciary capacity, any bank holding securities as a custodian or managing agent, and any bank holding securities as custodian for a fiduciary is authorized to deposit or arrange for the deposit of the securities in a clearing corporation as defined in subdivision 57A-8-102 (5).

Source: SL 1978, ch 357, § 1; SDCL § 51-19-10.1; SL 1995, ch 268, § 74; SL 1997, ch 272, § 12; SL 2015, ch 239, § 5; SL 2021, ch 203, § 5.
S.D. Codified Laws § 51A-4-42 — SD Code / Title 51A / Chapter 4 / Section 51A-4-42
Restrictions on purchase of cash value life insurance contracts
Status: in_force

A bank may purchase cash value life insurance contracts under such limits and restrictions as the commission may prescribe by rules promulgated pursuant to chapter 1-26 .

Source: SL 1993, ch 350.
S.D. Codified Laws § 51A-15-37 — SD Code / Title 51A / Chapter 15 / Section 51A-15-37
Objections to schedule of determinations in settlement of claims
Status: in_force

Within twenty days after the filing of the schedule, pursuant to subdivision 51A-15-36 (3) any creditor, depositor or stockholder may file with the circuit court an objection to any determination made. Any objections so filed shall be heard and determined by the court, upon such notice to the director or receiver and interested claimants as the court may prescribe. If the objection is sustained the court shall direct an appropriate modification of the schedule.

Source: SL 1915, ch 102, art 1, § 17; RC 1919, § 8933; SDC 1939, § 6.0611; SDCL, § 51-14-35; SL 1969, ch 11, § 13.20; SL 1970, ch 265, § 72; SL 1988, ch 377, § 179; SDCL, § 51-27-29.
S.D. Codified Laws § 51A-12-1 — SD Code / Title 51A / Chapter 12 / Section 51A-12-1
Application to bank loans
Status: in_force

This chapter applies to bank loans.

Source: SL 1969, ch 11, § 10.1; SL 1970, ch 265, § 52; SL 1983, ch 13, § 11; SDCL § 51-24-1; SL 2012, ch 252, § 21.
S.D. Codified Laws § 51A-1-5 — SD Code / Title 51A / Chapter 1 / Section 51A-1-5
Failure to obey director's orders--Civil liability
Status: in_force

Any officer, employee, or director of a bank who fails to obey any lawful order made by the director or commission under provisions of this title is subject to the imposition of a civil fine by the director or commission not exceeding one thousand dollars per violation for each day the officer, employee, director, or bank has willfully failed to comply with the order. Any funds received from such fines shall be deposited in the banking special revenue fund.

Source: SDC 1939, § 6.9911; SDCL § 51-1-4; SL 1969, ch 11, § 1.4; SL 1980, ch 24, § 76; SL 1988, ch 377, § 3; SDCL § 51-15-4; SL 2008, ch 252, § 2.
S.D. Codified Laws § 51A-15-19 — SD Code / Title 51A / Chapter 15 / Section 51A-15-19
Powers of Federal Deposit Insurance Corporation as receiver in liquidation proceedings--Actions to recover money damages
Status: in_force

The Federal Deposit Insurance Corporation may liquidate, reorganize, merge, or consolidate the bank in such manner as is permitted by the laws of the United States or by this chapter, possessing all rights, powers, duties, and obligations of the commission and director as therein set forth including the right to operate the trust department of any such bank which is qualified to do the business of a trust company.

A claim, proceeding, or action seeking to recover money damages may not be brought by the State of South Dakota, the Division of Banking, the Federal Deposit Insurance Corporation, Resolution Trust Corporation, or other federal banking regulatory agency against any director or officer, including any former director or officer, of any insured state chartered or federally chartered bank or financial depository institution as defined in the Financial Institutions Reform, Recovery and Enforcement Act of 1989, or bank chartered pursuant to Title 51A and its predecessors, unless such claim or action arises out of the gross negligence, or willful or intentional misconduct of such officer or director during his term of office with such insured financial institution. The provisions of this section shall be retroactive.

Source: SDC 1939, § 6.0626; SDCL, § 51-14-16; SL 1969, ch 11, § 13.25; SL 1970, ch 265, § 75; SDCL, §§ 51-27-12.4, 51-27-38; SL 1993, ch 353.
S.D. Codified Laws § 51A-1-11 — SD Code / Title 51A / Chapter 1 / Section 51A-1-11
False filing as misdemeanor
Status: in_force

No person may knowingly file or cause to be filed any statement, information, application, report, document or other form of proof with the director or the commission which is in whole or in part materially false nor may any person knowingly make or cause to be made any false entry in any book, document, record, application, information or other proof filed with the director or the commission pursuant to this title or pursuant to an order or request of the director or commission. A violation of this section is a Class 1 misdemeanor.

Source: SL 1981, ch 346, § 3; SDCL, § 51-15-16; SL 1988, ch 377, § 12; SDCL, § 51-15-9.1.
S.D. Codified Laws § 51A-15-16 — SD Code / Title 51A / Chapter 15 / Section 51A-15-16
Circuit court jurisdiction of proceedings--Venue
Status: in_force

The circuit court shall have original jurisdiction over all proceedings brought under this chapter. The venue of such proceedings shall be in the county in which the bank's principal place of business is located.

Source: SL 1909, ch 222, art 2, § 25; SL 1915, ch 102, art 2, § 28; RC 1919, § 8975; SDC 1939, § 6.0601; SDCL, § 51-14-3; repealed SL 1969, ch 11, § 14.1; re - enacted SL 1970, ch 265, § 76; SDCL, § 51-27-12.1.
S.D. Codified Laws § 51A-4-14 — SD Code / Title 51A / Chapter 4 / Section 51A-4-14
"Bills payable" issued for money borrowed by bank--Record of amount borrowed
Status: in_force

A bank shall issue its "bills payable" for any money borrowed by it, and shall show on its books and in all reports and statements made by it, the true amount of money borrowed by it.

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, § 6.0424; SDCL, § 51-6-15; SL 1969, ch 11, § 4.9; SDCL, § 51-18-10.
S.D. Codified Laws § 51A-13-2 — SD Code / Title 51A / Chapter 13 / Section 51A-13-2
Reports to director
Status: in_force

Every bank shall make a report to the director at least once during each calendar year at such times as the director shall require, on forms which he shall prescribe. The director may require additional special reports as frequently as the director deems necessary. The director may accept copies of federal reports to comply with this section.

Source: SDC 1939, § 6.0435; SDCL, §§ 51-12-2, 51-12-5; SL 1969, ch 11, § 11.2; SL 1981, ch 346, § 63; SL 1988, ch 377, § 153; SDCL, § 51-25-2; SL 1995, ch 269, § 1.
S.D. Codified Laws § 51A-6A-5 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-5
Considerations in ruling on application-Proceedings on application
Status: in_force

In ruling on an application required under this chapter, the director or the commission, as the case may be, shall consider the following:

(1) The financial standing, general business experience, and character of the organizers or incorporators of the applicant;

(2) The character, qualifications, and experience of the officers of the applicant;

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

(4) The prospects for success of the proposed trust company.

In any hearing on the application before the commission, the director shall submit to the commission for its consideration the director's findings with respect to the above conditions together with all other pertinent information in the director's possession. If the director or the commission, as the case may be, determines any of these conditions unfavorable to the applicant, then the application shall be disapproved, but if not, then the application shall be approved. Any proceeding before the commission on an application shall be held in conformance with chapter 1-26 .

Source: SL 1995, ch 268, § 3; SL 2008, ch 258, § 4.
S.D. Codified Laws § 51A-4-20.2 — SD Code / Title 51A / Chapter 4 / Section 51A-4-20.2
Qualification of community development corporation as permissible investment
Status: in_force

To qualify as a permissible investment for banks pursuant to § 51A-4-20 , a community development corporation shall be of a predominantly civic, community, or public nature and not merely private and entrepreneurial. Any project or entity which has been approved as a community development corporation by the Office of the Comptroller of the Currency, the Federal Reserve Board, or any other federal bank regulatory authority shall be eligible for investment by a bank, subject to the limitations of §§ 51A-4-20 to 51A-4-20.3 , inclusive.

Source: SL 1992, ch 334, § 1B.
S.D. Codified Laws § 51A-7-1 — SD Code / Title 51A / Chapter 7 / Section 51A-7-1
Operation of branches
Status: in_force

A branch bank or mobile branch bank may be operated by a bank only as authorized by this title and by the director under such rules as the commission shall require.

Source: SL 1933 (SS), ch 2, § 2; SL 1935, ch 54; SDC 1939, § 6.0402; SL 1957, ch 11; SDCL §§ 51-8-2, 51-8-3; SL 1969, ch 11, § 6.1; SL 1988, ch 377, § 125; SDCL § 51-20-1; SL 2008, ch 252, § 28.
S.D. Codified Laws § 51A-3-18 — SD Code / Title 51A / Chapter 3 / Section 51A-3-18
Dividends--Restrictions and requirements for declaration
Status: in_force

Dividends to stockholders may be declared from net profits by the board of directors of a bank not more than once in each calendar quarter provided that all provisions of this title relating to the maintenance of capital accounts have been complied with. The minutes of such a meeting shall reflect that a determination has been made that the reserve for loan and lease losses has been adequately funded, the amount carried to surplus, if any, the amount of dividend declared, the amount of net undivided profits, if any, remaining and the amount of total equity capital remaining.

Source: SL 1891, ch 27, § 13; RCivC 1903, § 859; SL 1909, ch 222, art 2, §§ 11, 36; SL 1911, ch 255, §§ 14, 16; SL 1915, ch 102, art 2, §§ 13, 40; RC 1919, §§ 8959, 8988, 9044, 9046; SL 1927, ch 214, § 2; SDC 1939, § 6.0439; SL 1953, ch 14, § 1; SDCL, §§ 51-4-23, 51-4-26; SL 1969, ch 11, § 3.7; SL 1987, ch 358; SDCL, § 51-17-8; SL 1988, ch 377, § 60; SDCL, § 51-17-20.3.
S.D. Codified Laws § 51A-12-2 — SD Code / Title 51A / Chapter 12 / Section 51A-12-2
Loan or credit limitation
Status: in_force

Except as otherwise provided in this title, no bank organized as a corporation or limited liability company may loan, or otherwise extend credit, to any corporation, partnership, or individual, an amount greater than the sum of:

(1) Twenty percent of its capital stock or members' equity and surplus; and

(2) Ten percent of its undivided profit.

Such limit shall be determined for each calendar quarter on the basis of the bank's quarterly report of condition for the immediately previous calendar quarter.

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, § 51-11-7; SL 1969, ch 11, § 10.2; SL 1981, ch 346, § 52; SL 1987, ch 359; SL 1988, ch 377, § 144; SL 1990, ch 382; SDCL, § 51-24-2; SL 2004, ch 289, § 11.
S.D. Codified Laws § 51A-2-35 — SD Code / Title 51A / Chapter 2 / Section 51A-2-35
Records of division open to public inspection--Exceptions--Court order
Status: in_force

The records of the division are open to public inspection. However:

(1) The director may withhold from public inspection any record, including any correspondence, for so long as deemed necessary for the protection of a person or bank or to be in the public interest;

(2) The director shall withhold from public inspection any record required to be confidential pursuant to federal statutes or rules or regulations of the board of governors of the federal reserve system or the Federal Deposit Insurance Corporation; and

(3) Reports of examination shall remain the property of the division and shall be furnished to the bank for its confidential use. Under no circumstances may the report or any supporting documentation be disclosed to anyone, other than directors and officers of the bank or anyone who is acting in a fiduciary capacity for the bank, without written permission from the director.

Any record of the division shall be made available upon order of a court of competent jurisdiction if cause is shown.

Source: SL 1969, ch 11, § 2.26; SL 1970, ch 265, § 14; SDCL, § 51-16-36; SL 1999, ch 234, § 1.
S.D. Codified Laws § 51A-3-33 — SD Code / Title 51A / Chapter 3 / Section 51A-3-33
Removal of directors--Vote required
Status: in_force

Any director may be removed by the stockholders at any regular or special meeting, except that no director may be removed unless the votes cast against a motion for his removal are less than the total number of shares outstanding, divided by the number of authorized directors, but all of the directors may be removed if a majority of the outstanding shares approves a motion for the removal of all.

Source: SL 1969, ch 11, § 3.26; SDCL, § 51-17-30.
S.D. Codified Laws § 51A-3-36 — SD Code / Title 51A / Chapter 3 / Section 51A-3-36
Names of officers and information forwarded to director--Vacancy on refusal to confirm
Status: in_force

Within ten days after the election or appointment of any officer, the board of directors shall cause to be forwarded to the director the name or names of such officer or officers together with such other information as may be required by the commission. If the director shall refuse to confirm the election or appointment of any such officer, such office shall immediately become vacant.

Source: SL 1933, ch 47, § 5, subdiv 9; SDC 1939, § 6.0317; SL 1963, ch 24; SDCL, § 51-3-19; SL 1969, ch 11, § 3.28; SL 1970, ch 265, § 26; SDCL, § 51-17-35.
S.D. Codified Laws § 51A-4-3 — SD Code / Title 51A / Chapter 4 / Section 51A-4-3
Operation of travel agency
Status: in_force

A bank may operate a travel agency on its banking premises with the approval of the director.

Source: SL 1969, ch 11, § 4.19; SL 1970, ch 265, § 32; SDCL, §§ 51-18-1.2, 51-18-20.
S.D. Codified Laws § 51A-17-64 — SD Code / Title 51A / Chapter 17 / Section 51A-17-64
Complete application--Notice--Approval and denial
Status: in_force

When an application for an original license under this chapter appears to include all of the items and addresses all of the matters that are required, the application is complete, and the director must promptly notify the applicant in a record of the date on which the application is determined to be complete.

(1) The director must approve or deny the application within one hundred twenty days after the completion date; or

(2) If the application is not approved or denied within one hundred twenty days after the completion date:

(a) The application is approved; and

(b) The license takes effect as of the first business day after expiration of the one hundred twenty-day period.

(c) The director may for good cause extend the application period.

Source: SL 2024, ch 196, § 13.
S.D. Codified Laws § 51A-17-72 — SD Code / Title 51A / Chapter 17 / Section 51A-17-72
Acquisition of control--Approval required--Application--Fee--Promulgation of rules
Status: in_force

(1) Any person, or group of persons acting in concert, seeking to acquire control of a licensee must obtain the written approval of the director prior to acquiring control. An individual is not deemed to acquire control of a licensee and is not subject to these acquisition of control provisions when that individual becomes a key individual in the ordinary course of business.

(2) A person, or group of persons acting in concert, seeking to acquire control of a licensee must, in cooperation with the licensee:

(a) Submit an application in a form and in a medium prescribed by the director; and

(b) Submit a nonrefundable fee not to exceed one thousand dollars. The director shall establish the fee by rule promulgated pursuant to chapter 1-26 .

(3) Upon request, the director may permit a licensee or the person, or group of persons acting in concert, to submit some or all information required by the director pursuant to this section without using NMLS.

(4) The application required by this section shall include information required by §§ 51A-17-62 and 51A-17-63 for any new key individuals that have not previously completed the requirements of §§ 51A-17-62 and 51A-17-63 for a licensee.

Source: SL 2024, ch 196, § 21.
S.D. Codified Laws § 51A-7-20 — SD Code / Title 51A / Chapter 7 / Section 51A-7-20
Reports required from out-of-state bank with South Dakota branch
Status: in_force

The director may require periodic reports regarding any out - of - state bank that has established and maintained a branch in South Dakota. The required reports may be provided by the bank or by the bank supervisory agency having primary responsibility for the bank. Any reporting requirements prescribed by the director under this section shall be consistent with the reporting requirements applicable to South Dakota state banks.

Source: SL 1996, ch 280, § 8.
S.D. Codified Laws § 51A-17-113 — SD Code / Title 51A / Chapter 17 / Section 51A-17-113
Consent order
Status: in_force

The director may enter into a consent order at any time with a person to resolve a matter arising under this chapter or a rule adopted or order issued under this chapter. A consent order must be signed by the person to whom it is issued or by the person's authorized representative and must indicate agreement with the terms contained in the order. A consent order may provide that it does not constitute an admission by a person that this chapter or a rule adopted or an order issued under this chapter has been violated.

Source: SL 2024, ch 196, § 62.
S.D. Codified Laws § 51A-6A-7.1 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-7.1
Corporation laws applied
Status: in_force

All provisions of law applicable to a corporation and a limited liability company are applicable to a trust company, except where inconsistent with this chapter and the provisions of this title, in which case this chapter and the provisions of this title govern.

Source: SL 2021, ch 203, § 29.
S.D. Codified Laws § 51A-4-2 — SD Code / Title 51A / Chapter 4 / Section 51A-4-2
Purchase and sale of securities on order of customer--Contract with securities brokerage services allowed
Status: in_force

A bank may, directly or through subsidiaries, purchase or sell without recourse any security upon the order of a customer for his account. The terms of this section shall be construed to permit banks to contract with securities brokerage services.

Source: SL 1969, ch 11, § 4.7; SDCL, § 51-18-7; SL 1988, ch 377, § 87; SDCL, § 51-18-1.1.
S.D. Codified Laws § 51A-5-26 — SD Code / Title 51A / Chapter 5 / Section 51A-5-26
Supervision of investment of fiduciary funds by committee designated by board of directors
Status: in_force

The board of directors shall designate one or more committees of not less than three qualified officers or directors to supervise the investment of fiduciary funds. No investment shall be made, retained, or disposed of without the approval of a committee. At least once each calendar year a committee shall review all assets of each fiduciary account and shall determine their current value, safety, and suitability and whether the investments should be modified or retained.

Source: SL 1969, ch 11, § 5.10; SDCL, § 51-19-12.
S.D. Codified Laws § 51A-7-13 — SD Code / Title 51A / Chapter 7 / Section 51A-7-13
Definition of terms
Status: in_force

Terms used in §§ 51A-7-13 to 51A-7-26 , inclusive, mean:

(1) "Acquisition of a branch," the acquisition of a branch located in a host state;

(2) "Bank," a bank as defined in 12 U.S.C. § 1813(h) as of January 1, 1996. The term does not include any foreign bank as defined in § 12 U.S.C. 3101(7) as of January 1, 1996. However, the term includes any foreign bank organized under the laws of a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, the deposits of which are insured by the Federal Deposit Insurance Corporation;

(3) "Bank supervisory agency," any agency of another state with primary responsibility for chartering and supervising banks, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, or any successor to these agencies;

(4) "Branch," a branch bank as defined by subdivision 51A-1-2 (7);

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

(6) "Control," control as construed consistently with the provisions of 12 U.S.C. § 1841(a)(2) as of January 1, 1996;

(7) "Home state," for a state bank, the state by which the bank is chartered; for a national bank, the state in which the main office of the bank is located; and for a foreign bank, the state determined to be the home state of the foreign bank pursuant to 12 U.S.C. § 3103(c) as of January 1, 1996;

(8) "Home state regulator," for an out - of - state state bank, the bank supervisory agency of the state in which the bank is chartered;

(9) "Host state," a state, other than the home state of a bank, in which the bank maintains, or seeks to establish and maintain a branch;

(10) "Out - of - state bank," a bank whose home state is a state other than South Dakota;

(11) "Out - of - state state bank," a bank chartered under the laws of any state other than South Dakota;

(12) "State," any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands;

(13) "South Dakota state bank," a bank chartered under the laws of South Dakota; and

(14) "Commission," the State Banking Commission for South Dakota.

Source: SL 1996, ch 280, § 1; SL 2021, ch 204, § 2.
S.D. Codified Laws § 51A-6A-14 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-14
Officers of governing board--Bond required
Status: in_force

The governing board may elect a chairperson, a president, one or more vice presidents, a secretary, and a cashier. The office of president and cashier may not be filled by the same person. The officers shall hold their offices for a term not to exceed one year and until their successors are elected and qualified. The governing board shall require all officers and employees having the care or handling of the funds of the trust company to give a good and sufficient bond to be executed by an approved corporate surety authorized to do business in this state. The amount and form of the bond shall be approved by the governing board and the director, and it shall be held by the director. The costs of the bonds shall be paid by the trust company. Any officer who becomes indebted to the trust company on any judgment shall forfeit the office and the governing board shall fill the vacancy.

Source: SL 1995, ch 268, § 11.
S.D. Codified Laws § 51A-12-16 — SD Code / Title 51A / Chapter 12 / Section 51A-12-16
Security interests authorized
Status: in_force

A credit agreement, or any agreement executed in connection therewith, may provide for the creation of a security interest in any personal or real property, including any goods under such agreement, to secure payment of a debtor's outstanding indebtedness under such agreement.

Source: SL 1983, ch 359, § 1; SDCL, § 51-24-17.
S.D. Codified Laws § 51A-17-67 — SD Code / Title 51A / Chapter 17 / Section 51A-17-67
Multistate licensing process--Investigations
Status: in_force

If an applicant 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-17-66 if the lead investigative state has sufficient staffing, expertise, and minimum standards; or

(2) If the division is a lead investigative state, the director is authorized and encouraged to investigate the applicant pursuant to § 51A-17-66 and the timeframes established by agreement through the multistate licensing process, provided, however, that in no case shall such a timeframe be noncompliant with the application period in § 51A-17-64 .

Source: SL 2024, ch 196, § 16.
S.D. Codified Laws § 51A-3-31 — SD Code / Title 51A / Chapter 3 / Section 51A-3-31
Indemnification of officers, directors, or employees
Status: in_force

A bank may indemnify by purchase of insurance or otherwise any current or former officer, director, employee or agent, his heirs, personal representatives and successors in interest in the same manner and to the same extent as a business corporation may indemnify, pursuant to the provisions of §§ 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.

Source: SL 1969, ch 11, § 3.25; SL 1970, ch 265, § 24; SL 1988, ch 377, § 74; SDCL § 51-17-28; SL 2005, ch 202, § 21.
S.D. Codified Laws § 51A-3-13 — SD Code / Title 51A / Chapter 3 / Section 51A-3-13
Subscription of shares--Minimum collection--Refund on disapproval of application
Status: in_force

The incorporators shall collect an amount equal to not less than ten percent of the subscription price of each share of stock subscribed for at the time such subscriptions are issued. If the application is disapproved by the director or commission, that portion of the moneys so collected remaining after the payment of the expenses incidental to such application shall be proportionally refunded to the subscribers.

Source: SL 1969, ch 11, § 3.12; SL 1970, ch 265, § 19; SDCL § 51-17-13; SL 1988, ch 377, § 63; SDCL § 51-17-18.1; SL 2012, ch 252, § 10.
S.D. Codified Laws § 51A-3-17 — SD Code / Title 51A / Chapter 3 / Section 51A-3-17
Preferred stock, capital notes, and debentures outstanding--Restrictions on dividends
Status: in_force

No dividends may be declared or paid on the capital stock of any bank which has outstanding capital notes or debentures, or if preferred stock has been issued without prior written approval of the director unless:

(1) In the case of an issue of capital notes or debentures, the surplus and undivided profits of such bank equal such issue, the retirement requirements and interest on the issue have been paid; or

(2) In the case of an issue of preferred stock, all the terms of issue shall have been satisfied.

Source: SL 1933 (SS), ch 1, § 4; SL 1935, ch 61, § 2; SDC 1939, § 6.0409; SL 1943, ch 16; SL 1955, ch 10; SDCL, §§ 51-4-12, 51-4-24; SL 1969, ch 11, § 3.6; SDCL, § 51-17-7; SL 1988, ch 377, § 59; SDCL, § 51-17-20.2.
S.D. Codified Laws § 51A-5-10 — SD Code / Title 51A / Chapter 5 / Section 51A-5-10
Establishment of place of business not permitted or prohibited by filing requirements
Status: in_force

The provisions of §§ 51A-5-7 to 51A-5-9 , inclusive, may not be construed to prohibit, permit, or affect in any other way, the right of a bank or trust company, organized and doing business under the laws of any other state, territory, or district than South Dakota, including a national bank doing business in any other state, to establish in this state a place of business, branch office, or agency for the conduct of business as a fiduciary.

Source: SL 1973, ch 292, § 3; SDCL, § 51-19-5.4; SL 1995, ch 268, § 70; SL 1997, ch 272, § 8.
S.D. Codified Laws § 51A-6A-19 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-19
Determining capital--Minimum--Purpose of capital--Fidelity bond and liability insurance policy
Status: in_force

For purposes of this section, the capital of a trust company is the total of the aggregate par value of its outstanding shares of capital stock or ownership units, its surplus, and its undivided profits. The minimum capital of a trust company is two hundred thousand dollars. The director may require that the trust company have more capital than the amount specified if the director determines that the amount and character of the anticipated business of the trust company and the safety of the customers so require. This chapter recognizes that capital for a trust company serves a different purpose than does capital for a bank. It is not intended that capital requirements for trust companies be judged by the same standards as banks. Basic protection for fiduciary clients of a trust company shall be provided by the purchase of a fidelity bond and a director's and officer's liability insurance policy. The bond and insurance shall be in an amount of not less than one million dollars each. The trust company shall give notice of cancellation or nonrenewal of the bond or insurance policy to the director within ten days of the receipt of cancellation or nonrenewal. Except as may be provided elsewhere in this chapter, no trust company may reduce voluntarily its capital stock or ownership units or surplus below the amount required in this section.

Source: SL 1995, ch 268, § 17; SL 2002, ch 220, § 2; SL 2006, ch 243, § 2; SL 2008, ch 258, § 8; SL 2013, ch 239, § 3.
S.D. Codified Laws § 51A-13-5 — SD Code / Title 51A / Chapter 13 / Section 51A-13-5
Preservation of records
Status: in_force

Every bank shall retain and preserve its bank records and supporting documents for a period of time set forth in rules issued by the commission.

Source: SL 1969, ch 11, § 11.6; SL 1970, ch 265, § 59; SL 1988, ch 377, § 155; SDCL, § 51-25-6.
S.D. Codified Laws § 51A-6A-49 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-49
Reason for disapproval of acquisition
Status: in_force

The director may disapprove any proposed acquisition if:

(1) The proposed acquisition of control would result in a monopoly or would be in furtherance of any combination or conspiracy to monopolize or attempt to monopolize the trust business in any part of this state;

(2) The financial condition of any acquiring person is such as might jeopardize the financial stability of the trust company or prejudice the interests of the clients of the trust company;

(3) The competence, experience, or integrity of any acquiring person or of any of the proposed management personnel indicates that it would not be in the interest of the clients of the trust company or in the interest of the public to permit such person to control the trust company; or

(4) Any acquiring person neglects, fails, or refuses to furnish the director all the information required by the director.

Source: SL 1995, ch 268, § 47.
S.D. Codified Laws § 51A-17-91 — SD Code / Title 51A / Chapter 17 / Section 51A-17-91
Prohibition if unlicensed
Status: in_force

A person shall not engage in the business of money transmission on behalf of a person not licensed under this chapter or not exempt pursuant to § 51A-17-53 . A person that engages in such activity, provides money transmission to the same extent as if the person were a licensee, shall be jointly and severally liable with the unlicensed or nonexempt person.

Source: SL 2024, ch 196, § 40.
S.D. Codified Laws § 51A-17-82 — SD Code / Title 51A / Chapter 17 / Section 51A-17-82
Multistate licensing--Determination--Investigation
Status: in_force

If a multistate licensing process includes a determination pursuant to § 51A-17-81 and an applicant avails itself or is otherwise subject to the multistate licensing process:

(1) The director is authorized and encouraged to accept the control determination of a lead investigative state with sufficient staffing, expertise, and minimum standards for the purpose of § 51A-17-81 ; or

(2) If this state is a lead investigative state, the director is authorized and encouraged to investigate the applicant pursuant to § 51A-17-81 and the timeframes established by agreement through the multistate licensing process.

Source: SL 2024, ch 196, § 31.
S.D. Codified Laws § 51A-4-27 — SD Code / Title 51A / Chapter 4 / Section 51A-4-27
Investments in agricultural credit corporations and livestock loan companies
Status: in_force

Any bank may purchase and own stock and capital notes or other evidence of debt issued by:

(1) An agricultural credit corporation or livestock loan company, or its affiliate, the principal business of which corporation is the extension of short and intermediate term credit to farmers and ranchers, including partnerships and corporations legally engaged in farming as defined in subdivision 47-9A-2(4) in accordance with the provisions of chapter 47-9A ; and

(2) Exempt corporations as provided in §§ 47-9A-10 and 47-9A-11 .

Unless a bank owns at least eighty percent of the stock of the agricultural credit corporation or livestock loan company, it may not obligate more than twenty percent of its capital stock and surplus for those purposes. Under no circumstances may a bank obligate more than twenty percent of its capital stock and surplus and undivided profits for that purpose. Any agricultural credit corporation or livestock loan company, or its affiliate, has the same privileges as a state chartered bank or trust company provided in § 47-9A-4 .

Source: SL 1977, ch 398; SL 1981, ch 346, § 36; SL 1982, ch 335; SL 1983, ch 358; SL 1988, ch 377, § 98; SDCL, § 51-18-23.1.
S.D. Codified Laws § 51A-15-28 — SD Code / Title 51A / Chapter 15 / Section 51A-15-28
Requirements for adoption of reorganization plan
Status: in_force

No plan of reorganization may be prescribed under this chapter unless, in the opinion of the director or receiver:

(1) The plan is feasible and fair to all classes of depositors, creditors and stockholders;

(2) The face amount of the interest accorded to any class of depositors, creditors or stockholders under the plan does not exceed the value of the assets upon the liquidation less the full amount of the claims of all prior classes, subject, however, to any fair adjustment for new capital that any class will pay under the plan;

(3) The plan provides for the issuance of common stock in an amount that will provide an adequate ratio to assets;

(4) Any exchange of new common stock for obligations or stock of the bank will be effected in inverse order to the priorities in liquidation of the classes that will retain an interest in the bank and upon terms that fairly adjust any change in the relative interests of the respective classes that will be produced by the exchange;

(5) The plan assures the removal of any director, officer or employee responsible for any unsound or unlawful action or the existence of any unsound condition;

(6) Any merger or consolidation provided by the plan conforms to the requirement of this title.

Source: SL 1969, ch 11, § 13.11; SL 1970, ch 20, § 1 (5); SL 1988, ch 377, § 172; SDCL, § 51-27-20.
S.D. Codified Laws § 51A-6A-8 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-8
Amendment of articles--Extension of existence
Status: in_force

Prior to the expiration of the period for which it was incorporated or organized a trust company may, with the approval of at least a majority of the capital stock or ownership units of such trust company, amend its articles to extend its existence for an additional period, which may be perpetual.

Source: SL 1995, ch 268, § 5A; SL 2011, ch 212, § 39.
S.D. Codified Laws § 51A-11-7.1 — SD Code / Title 51A / Chapter 11 / Section 51A-11-7.1
Death of joint lessee or other having right of access--Notification of lessor
Status: in_force

Any person or representative having a right of access to a safe deposit box or other receptacle of similar character shall, upon the death of any other person having a right of access to such box or receptacle, notify the person, firm, partnership, association, limited liability company, joint - stock company, or corporation from whom the box or receptacle is leased or rented of the death of such person prior to accessing the box or receptacle.

Source: SL 2002, ch 222, § 6.
S.D. Codified Laws § 51A-19-6 — SD Code / Title 51A / Chapter 19 / Section 51A-19-6
Immunity from liability
Status: in_force

A financial institution and its bank holding company, if any, and any employees, agents, officers, and directors of the financial institution and its bank holding company, if any, are immune from any civil, criminal, or administrative liability that may otherwise exist:

(1) For delaying or refusing to execute a transaction, withdrawal, or disbursement, in accordance with this chapter;

(2) For not delaying or refusing to execute a transaction, withdrawal, or disbursement in accordance with this chapter; and

(3) For actions taken in furtherance of determinations made in accordance with this chapter.

Source: SL 2026, ch 194, § 6.
S.D. Codified Laws § 51A-4-7 — SD Code / Title 51A / Chapter 4 / Section 51A-4-7
Arrest and prosecution for violation
Status: in_force

The director may take such action as necessary to cause the arrest and prosecution of any person in violation of § 51A-4-5 . The state's attorney shall prosecute any violation in the county where such person, partnership or corporation is located; and upon his request or the request of the director, the attorney general shall assist in such prosecution.

Source: SL 1988, ch 377, § 82; SDCL, § 51-18-2.2.
S.D. Codified Laws § 51A-9-1 — SD Code / Title 51A / Chapter 9 / Section 51A-9-1
"Bank service corporation" and "bank services" defined
Status: in_force

Terms as used in this chapter mean:

(1) "Bank service corporation," any corporation organized to perform bank services for one or more banks, each of which owns part of the capital stock of such corporation.

(2) "Bank services," activities which are a part of the business of banking or incidental thereto, including the servicing of mortgages and loans; the leasing of personal property; the operation of travel agencies; the operation of credit bureaus or collection or billing agencies; check and deposit sorting and posting; computation and posting of interest and other charges; preparation and mailing of checks, statements, notices and similar items; any other clerical, bookkeeping, accounting, statistical, or similar functions performed for a bank; or such other related activities as the commission may by rule determine to be part of the business of banking, provided that the receipt of deposits and the making of loans are not bank services for the purpose of this chapter.

Source: SL 1963, ch 29, § 1; SDCL, § 51-9-1; SL 1969, ch 11, § 7.1; SL 1970, ch 265, § 40; SL 1988, ch 377, § 132; SDCL, § 51-21-1.
S.D. Codified Laws § 51A-5-27 — SD Code / Title 51A / Chapter 5 / Section 51A-5-27
Reports of committees designated to supervise fiduciary accounts
Status: in_force

The committees provided for in §§ 51A-5-25 and 51A-5-26 shall keep minutes of their meetings, and shall fully report to the board of directors at least once in each calendar quarter all action taken since their previous report.

Source: SL 1969, ch 11, § 5.10; SDCL, § 51-19-13.
S.D. Codified Laws § 51A-7-8 — SD Code / Title 51A / Chapter 7 / Section 51A-7-8
Detached drive-in facility--Requirements for construction and operation
Status: in_force

Construction and operation of one detached drive - in facility for each bank and branch bank is authorized so long as such bank or branch bank shall comply with all the provisions of this chapter.

Source: SL 1965, ch 21, § 1; SDCL, § 51-8-8; SL 1969, ch 11, § 6.6; SDCL, § 51-20-6.
S.D. Codified Laws § 51A-14-4 — SD Code / Title 51A / Chapter 14 / Section 51A-14-4
Conversion from national bank, federal savings association, or federal savings bank to state bank
Status: in_force

Any national bank, federal savings association, or federal savings bank that desires to take the necessary steps to effect dissolution as a national bank, a federal savings association or a federal savings bank with the federal regulatory authority having jurisdiction may make application to the director to reorganize as a state bank. An application for conversion to a state bank shall consist of a letter of intent signed by a majority of the institution's board of directors together with any additional information required by the director. The stockholders of the national bank, federal savings association, or federal savings bank shall make, execute, and acknowledge articles of incorporation as required by this title. Upon receipt of an application for approval of a conversion, the director shall conduct such investigation as he may deem necessary to ascertain whether:

(1) The letter of intent and supporting items satisfy the requirements of this title;

(2) The plan of conversion adequately protects the interests of depositors;

(3) The requirements for a conversion under all applicable laws have been satisfied, and the resulting state bank would satisfy the requirements for banks authorized by this title; and

(4) The resulting state bank will possess an adequate capital structure.

Upon filing and approval of such articles as provided by this title, and upon the issuance of a certificate of authority by the director as provided herein, the institution may transact business as a state bank, and thereupon all assets, real and personal, of the dissolved national bank, federal savings association, or federal savings bank shall be vested in and become the property of the state bank.

Source: SDC 1939, § 6.0407; SDCL § 51-13-3; SL 1969, ch 11, § 12.3; SL 1988, ch 377, § 158; SDCL § 51-26-3; SL 1993, ch 352; SL 2012, ch 252, § 24.
S.D. Codified Laws § 51A-17-93 — SD Code / Title 51A / Chapter 17 / Section 51A-17-93
Licensee's duty to forward money received for transmission--Failure to forward
Status: in_force

(1) Every licensee shall forward all money received for transmission in accordance with the terms of the agreement between the licensee and the sender unless the licensee has a reasonable belief or a reasonable basis to believe that the sender may be a victim of fraud or that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur.

(2) If a licensee fails to forward money received for transmission in accordance with this section, the licensee must respond to inquiries by the sender with the reason for the failure unless providing a response would violate a state or federal law, rule, or regulation.

Source: SL 2024, ch 196, § 42.
S.D. Codified Laws § 51A-7-3 — SD Code / Title 51A / Chapter 7 / Section 51A-7-3
Capital requirements for bank operating branch
Status: in_force

Any bank operating a branch bank or banks shall have total capital of not less than the minimum amount required by rule of the commission.

Source: SL 1933 (SS), ch 2, § 2; SDC 1939, § 6.0402; SL 1957, ch 11; SDCL, § 51-8-4; SL 1969, ch 11, § 6.3; SL 1982, ch 334, § 2; SL 1988, ch 377, § 127; SDCL, § 51-20-3.
S.D. Codified Laws § 51A-17-73 — SD Code / Title 51A / Chapter 17 / Section 51A-17-73
Acquisition of control--Application--Completion
Status: in_force

When an application for acquisition of control under § 51A-17-72 appears to include all the items and address all of the matters that are required, the application shall be considered complete and the director shall promptly notify the applicant in a record of the date on which the application was determined to be complete and:

(1) The director shall approve or deny the application within sixty days after the completion date; or

(2) If the application is not approved or denied within sixty days after the completion date:

(a) The application is approved; and

(b) The person, or group of persons acting in concert, are not prohibited from acquiring control.

(3) The director may for good cause extend the application period.

Source: SL 2024, ch 196, § 22.
S.D. Codified Laws § 51A-5-1.2 — SD Code / Title 51A / Chapter 5 / Section 51A-5-1.2
"Trust business" defined
Status: in_force

Trust business is engaging in, or holding out to the public as willing to engage in, the business of acting as a fiduciary for hire, except that no abstractor, accountant, attorney, credit union, insurance broker, insurance company, investment advisor, real estate broker or sales agent, savings and loan association, savings bank, securities broker or dealer, real estate title insurance company or real estate escrow company shall be deemed to be engaged in a trust business with respect to fiduciary services customarily performed by them for compensation as a traditional incident to their regular business activities.

Source: SL 1995, ch 268, § 85A.
S.D. Codified Laws § 51A-17-77 — SD Code / Title 51A / Chapter 17 / Section 51A-17-77
Acquisition of control--Denial of application--Appeal
Status: in_force

The director shall issue a formal written notice of the denial of an application to acquire control within thirty days of the decision to deny the application. The director must 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, § 26.
S.D. Codified Laws § 51A-17-112 — SD Code / Title 51A / Chapter 17 / Section 51A-17-112
Cease and desist order by director
Status: in_force

(1) If the director determines that a violation of this chapter or of a rule adopted or an order issued under this chapter by a licensee or authorized delegate is likely to cause immediate and irreparable harm to the licensee, its customers, or the public as a result of the violation, or cause insolvency or significant dissipation of assets of the licensee, the director may issue an order requiring the licensee or authorized delegate to cease and desist from the violation. The order becomes effective upon service of it upon the licensee or authorized delegate.

(2) The director may issue an order against a licensee to cease and desist from providing money transmission through an authorized delegate that is the subject of a separate order by the director.

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

(4) A licensee or an authorized delegate that is served with an order to cease and desist 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 .

(5) An order to cease and desist expires unless the director commences an administrative proceeding pursuant to chapter 1-26 within ten days after it is issued.

Source: SL 2024, ch 196, § 61.
S.D. Codified Laws § 51A-14-7 — SD Code / Title 51A / Chapter 14 / Section 51A-14-7
Valuation of dissident shareholders' stock
Status: in_force

The provisions of §§ 47-1A-1107 to 47-1A-1107.4 , inclusive, and §§ 47-1A-1302 to 47-1A-1331.2 , inclusive, apply when establishing the valuation of shares of bank stock owned by dissident shareholders.

Source: SL 1984, ch 317; SL 1988, ch 377, § 162; SDCL, § 51-26-7; SL 2005, ch 202, § 17.
S.D. Codified Laws § 51A-4-5 — SD Code / Title 51A / Chapter 4 / Section 51A-4-5
Certificate of authority required to engage in banking business--Misdemeanor
Status: in_force

No person, partnership or corporation may advertise, publish or otherwise represent that he is engaged in the business of banking without having first obtained a certificate of authority from the director, as provided in this title. A violation of this section is a Class 1 misdemeanor.

Source: SL 1909, ch 222, art 2, § 47; SL 1915, ch 102, art 2, § 51; RC 1919, § 9000; SDC 1939, §§ 6.0403, 6.9905; SDCL, § 51-6-1; SL 1969, ch 11, § 4.2; SL 1980, ch 24, § 85; SL 1988, ch 377, § 80; SDCL, § 51-18-2.
S.D. Codified Laws § 51A-5-13 — SD Code / Title 51A / Chapter 5 / Section 51A-5-13
Segregation of assets held by bank as fiduciary
Status: in_force

A bank holding any asset as fiduciary, shall:

(1) Segregate all such assets from any other assets of the bank and from the assets of other trusts, except as may be expressly provided otherwise by law or by the writing creating the trust.

(2) Record such assets in a separate set of books maintained for fiduciary activities.

Source: SL 1969, ch 11, § 5.6; SL 1975, ch 292, §§ 1, 2; SDCL, § 51-19-7.
S.D. Codified Laws § 51A-17-120 — SD Code / Title 51A / Chapter 17 / Section 51A-17-120
Consent to South Dakota jurisdiction
Status: in_force

Any person who engages in business activity regulated by this chapter in the state is deemed to have consented to the jurisdiction of the courts of South Dakota for all actions arising under this chapter.

Source: SL 2024, ch 196, § 69.
S.D. Codified Laws § 51A-19-4 — SD Code / Title 51A / Chapter 19 / Section 51A-19-4
Notification of third party permitted--Grounds--Permissible third parties
Status: in_force

A financial institution or an employee of a financial institution may notify any third party reasonably associated with a consenting, senior, or vulnerable adult, if the institution or employee reasonably believes that financial exploitation of the adult may have occurred, may have been attempted, is occurring, or is being attempted.

A financial institution or an employee of a financial institution may choose not to notify any third party reasonably associated with a consenting, senior, or vulnerable adult of suspected financial exploitation of the adult, if the institution or employee reasonably believes the third party is, may be, or may have been engaged in the financial exploitation of the adult, or if requested to refrain from making a notification by a law enforcement agency on the grounds that the notification could interfere with a law enforcement investigation.

For purposes of this section, a third party reasonably associated with a consenting, senior, or vulnerable adult means:

(1) A parent, spouse, adult child, sibling, or other known family member or close associate of the adult;

(2) An authorized contact provided by the adult to the financial institution;

(3) A co-owner, additional authorized signatory, or beneficiary on an adult's account;

(4) An attorney in fact, trustee, conservator, guardian, or other fiduciary who has been selected by the adult, a court, or a third party, to manage some or all of the financial affairs of the adult; and

(5) An attorney known to represent or have represented the adult.

Source: SL 2026, ch 194, § 4.
S.D. Codified Laws § 51A-1-8 — SD Code / Title 51A / Chapter 1 / Section 51A-1-8
Liability of bank as insurer or as guarantor or endorser of security instrument prohibited
Status: in_force

Except as expressly permitted in this title, a bank shall not assume liability as an insurer or as a guarantor or endorser of any security instrument or obligation in which or with respect to which it has no property interest.

Source: SL 1969, ch 11, § 1.6; SDCL, § 51-15-6.
S.D. Codified Laws § 51A-11-6 — SD Code / Title 51A / Chapter 11 / Section 51A-11-6
Joint leaseholds in safe deposit
Status: in_force

Joint leaseholds in and to a safe deposit box may be created by contract with two or more persons, including minors, named as lessees. The terms of the contract may provide that any one or more of the lessees, or the survivor or survivors of the lessee or lessees shall have access and entry to the safe deposit box and the right to remove the contents from the box whether the other lessee or lessees be living, incompetent, or dead, and in case of such removal the lessor is not liable for the removal. The existence of a joint leasehold agreement in and to a safe deposit box shall in no way affect a determination as to what persons hold title to the contents of such box.

Source: SL 1969, ch 11, § 9.6; SL 1970, ch 265, § 48; SDCL 51-23-6; SL 2000, ch 229, § 17.
S.D. Codified Laws § 51A-17-69 — SD Code / Title 51A / Chapter 17 / Section 51A-17-69
Initial license term
Status: in_force

The initial license term begins on the day the application is approved. The license shall expire on December thirty-first of the year in which the license term began, unless the initial license date is between November first and December thirty-first, in which instance the initial license term runs through December thirty-first of the following year.

Source: SL 2024, ch 196, § 18.
S.D. Codified Laws § 51A-6A-23 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-23
Registration of capital stock or ownership units
Status: in_force

If the director determines that the capital stock of any trust company is impaired, the director shall notify the trust company to restore the capital stock or ownership units within ninety days of receipt of the notice. Within fifteen days of receipt of the notice, the governing board of the trust company shall levy an assessment on the owners sufficient to restore the capital stock or ownership units. The trust company, with its governing board's approval, may reduce its capital stock or ownership units to the extent of the impairment, if such reduction will not reduce the capital below the amount required by this chapter.

Source: SL 1995, ch 268, § 21.
S.D. Codified Laws § 51A-6A-39 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-39
Confidentiality of information generated by examination--Disclosure--Hearing
Status: in_force

All information the director generates in making an investigation or examination of a state trust company is confidential. All confidential information shall remain the property of the division and shall be furnished to the trust company for its confidential use. Under no circumstances may a trust company disclose a report or any supporting documentation to anyone, other than directors and officers of the trust company or anyone acting in a fiduciary capacity for the trust company, without written permission from the director.

The director shall give ten days' prior written notice of intent to disclose confidential information to the affected trust company. Any trust company which receives a notice may object to the disclosure of the confidential information and shall be afforded the right to a hearing in accordance with the provisions of chapter 1-26 . If a trust company requests a hearing, the director may not reveal confidential information prior to the conclusion of the hearing and a ruling. Disclosure of confidential information shall be made only to formal regulatory bodies which clearly have a need for the confidential information. Prior to dissemination of any confidential information, the director shall require a written agreement not to reveal the confidential information by the party receiving the confidential information. In no event may the director disclose confidential information to the general public, any competitor, or any potential competitor of a trust company.

The submission of any information to the division in the course of any investigation or examination may not be construed as waiving, destroying, or otherwise affecting any privilege any person may claim with respect to the information under South Dakota law or federal law.

Source: SL 1995, ch 268, § 37; SL 2008, ch 258, § 9; SL 2012, ch 233, § 3.
S.D. Codified Laws § 51A-17-106 — SD Code / Title 51A / Chapter 17 / Section 51A-17-106
Designation by director of agent as beneficiary to a letter of credit
Status: in_force

The director may designate an agent to serve on the director's behalf as beneficiary to a letter of credit so long as the agent and letter of credit meet requirements established by the director. The director's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of this subdivision 51A-17-102 (4) are assigned to the director.

Source: SL 2024, ch 196, § 55.
S.D. Codified Laws § 51A-6A-6 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-6
Application fee
Status: in_force

All applications for charters under this chapter shall include a five thousand dollar application fee which is nonrefundable. This fee shall be remitted by the Division of Banking to the state general fund.

Source: SL 1995, ch 268, § 4; SL 1998, ch 282, § 33.
S.D. Codified Laws § 51A-6A-58 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-58
Establishment of trust service offices--Application
Status: in_force

After first applying for and obtaining the approval of the director, one or more trust service offices may be established and operated by a trust company incorporated under the laws of this state or by an out-of-state trust institution, if and to the extent that the state, territory, or district in which the out-of-state trust institution is chartered or licensed to engage in a trust company business grants authority for a trust company organized and doing business under the laws of this state to establish an office in that state, territory, or district. An application to establish and operate a trust service office or to relocate an existing trust service office shall be submitted and approved in the manner set forth in § 51A-6A-4 .

A trust company may establish a trust service office in another state, territory, or district and may conduct any activities at that office that are permissible for a trust company under the laws of that state, territory, or district subject to the laws of this state and subject to the rules, orders, or declaratory rules of the commission or the director.

The provisions of this section do not apply to a private trust company unless the governing board decides to establish a trust service office in another state, territory, or district.

Source: SL 1995, ch 268, § 56; SL 2005, ch 260, § 14; SL 2008, ch 258, § 11; SL 2016, ch 231, § 8.
S.D. Codified Laws § 51A-15-36 — SD Code / Title 51A / Chapter 15 / Section 51A-15-36
Settlement of claims by director or receiver in liquidation proceedings
Status: in_force

Within six months after the last day specified in the notice for the filing of claims or such longer period as may be allowed by the circuit court, the director or receiver shall:

(1) Reject any claim determined to be invalid;

(2) Determine the amount, if any, owing to each known creditor or depositor and the priority class of his claim under this chapter;

(3) Prepare a schedule of such determinations for filing in the circuit court; and

(4) Provide for legal publication in such newspapers as he shall determine, once a week for three successive weeks a notice of the time when and where the schedule of determinations will be available for inspection; and the date, not sooner than thirty days thereafter, when the director or receiver will file his schedule in court.

Source: SL 1911, ch 256, § 13; SL 1915, ch 102, art 1, § 17; RC 1919, § 8933; SDC 1939, § 6.0611; SDCL, §§ 51-14-33, 51-14-34; SL 1969, ch 11, § 13.19; SL 1970, ch 265, § 71; SL 1988, ch 377, § 178; SDCL, § 51-27-28.
S.D. Codified Laws § 51A-5-17 — SD Code / Title 51A / Chapter 5 / Section 51A-5-17
Application of provisions to fiduciaries and custodians whenever appointed
Status: in_force

Sections 51A-5-14 to 51A-5-16 , inclusive, shall apply to all fiduciaries, and custodians for fiduciaries, acting as of July 1, 1975, or who thereafter may act regardless of the date of the instrument or court order by which they are appointed.

Source: SDCL, § 51-19-7 as added by SL 1975, ch 292, § 2; SDCL, § 51-19-7.4.
S.D. Codified Laws § 51A-15-29 — SD Code / Title 51A / Chapter 15 / Section 51A-15-29
Modification of reorganization plan or liquidation of bank--Grounds and notice requirements
Status: in_force

Whenever in the course of reorganization supervening conditions render a plan of reorganization unfair or its execution impractical, the director may modify the plan or liquidate the bank. Any such action shall be taken by order upon reasonable notice.

Source: SL 1969, ch 11, § 13.12; SL 1970, ch 265, § 68; SDCL, § 51-27-21.
S.D. Codified Laws § 51A-15-33 — SD Code / Title 51A / Chapter 15 / Section 51A-15-33
Subrogation rights of Federal Deposit Insurance Corporation in liquidation of bank
Status: in_force

The right of any agency of the United States insuring deposits of a bank in liquidation, to be subrogated to the rights of depositors upon payment of their claim shall not be less extensive than the law of the United States requires as a condition of the authority to issue such insurance or make such payment.

Source: SL 1969, ch 11, § 13.16; SDCL, § 51-27-25.
S.D. Codified Laws § 51A-6A-5.1 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-5.1
Notice to division of material omission in application or change in facts reported in application
Status: in_force

Any trust company shall immediately notify the division of any material omission from the application or any material change in the facts reported in an application, either of which could have led to an unfavorable finding with respect to the criteria established in § 51A-6A-5 . Failure to so notify the division of the material omission from the application or the existence of the material change in facts as reported in the application, either of which could have led to an unfavorable finding with respect to the criteria established in § 51A-6A-5 , may subject the trust company to revocation proceedings or other regulatory action as provided in this title. The director shall give notice of the revocation or other regulatory action to the president or other managing officer of the trust company, and any revocation action shall thereupon proceed according to § 51A-6A-38 .

Source: SL 2013, ch 239, § 5.
S.D. Codified Laws § 51A-3-16 — SD Code / Title 51A / Chapter 3 / Section 51A-3-16
Preferred stock, capital notes, and debentures--Director approval of issuance--Terms of issue--Director approval of retirement or payment
Status: in_force

The director may approve the issuance of preferred stock, capital notes, debentures or other bank securities after approval of the majority of the stockholders. The terms of issue shall set forth the voting rights available thereon and the rank or priority, if any, of depositor or other creditor with reference to such issue in case of insolvency of the issuing bank. No such stock, notes, debentures or other bank securities may be issued prior to approval by the director. Before any such issue is retired or paid, the bank shall obtain the written approval of the director.

Source: SL 1933 (SS), ch 1, § 4; SL 1935, ch 61, § 2; SDC 1939, § 6.0409; SL 1943, ch 16; SL 1955, ch 10; SDCL, §§ 51-4-7, 51-4-22; SL 1969, ch 11, § 3.6; SL 1981, ch 346, § 21; SDCL, § 51-17-6; SL 1988, ch 377, § 58; SDCL, § 51-17-20.1.
S.D. Codified Laws § 51A-4-20 — SD Code / Title 51A / Chapter 4 / Section 51A-4-20
Restriction on use of bank money to purchase other bank stock--Community investments authorized--Limitation on investment
Status: in_force

No bank may employ its money, directly or indirectly, in the purchase of the stock of any other bank. However, a bank, or branch bank, may make reasonable contributions to local community agencies or groups to further the physical, economic, and social development of the bank's community. Such contribution may take the form of an investment in a corporation organized to carry on such activities and development. A bank may invest in a community development corporation and like entities and carry such investment as an asset on its books. However, the bank's investment in any one community development corporation or like entity may not exceed two percent of the bank's capital, surplus and undivided profits and the aggregate of all such investments held by the bank may not exceed five percent of the bank's capital, surplus, and undivided profits.

Source: SDC 1939, § 6.0430; SL 1964, ch 12; SDCL, § 51-11-15; SL 1969, ch 11, § 4.14; SL 1970, ch 265, § 30; SL 1986, ch 400, § 15; SL 1988, ch 377, § 91; SDCL, § 51-18-15; SL 1992, ch 334, § 1.
S.D. Codified Laws § 51A-17-65 — SD Code / Title 51A / Chapter 17 / Section 51A-17-65
Complete application--Meaning
Status: in_force

A determination by the director that an application is complete and is accepted for processing means only that the application, on its face, appears to include all of the items, including the criminal background check response from the FBI, addresses 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, § 14.
S.D. Codified Laws § 51A-3-26 — SD Code / Title 51A / Chapter 3 / Section 51A-3-26
Lien on shares--Enforcement--Marking of certificates
Status: in_force

Any bank has a lien upon the shares of any stockholder of the bank or any stockholder of the parent bank holding company who is indebted to it, and for such purpose, in addition to stock duly recorded, the bank may enforce its lien against stock actually owned by the debtor but not recorded on the transfer books. All certificates for such stock shall have printed or stamped thereon the words: "Subject to lien for any indebtedness of holder to bank," and such lien is not enforceable against a purchaser in good faith unless such words are printed or stamped on such certificate.

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, §§ 51-4-17, 51-4-20; SL 1969, ch 11, § 3.22; SL 1970, ch 265, § 22; SL 1988, ch 377, § 71; SDCL, § 51-17-24.
S.D. Codified Laws § 51A-6A-46.2 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-46.2
Disclosure of confidential information in certain actions
Status: in_force

The provisions of §§ 51A-6A-2 and 51A-6A-39 do not apply to the disclosure of information by the director or the commission in connection with the institution and prosecution of an action against an individual pursuant to the provisions of § 51A-2-22 or against a trust company pursuant to the provisions of §§ 51A-15-11 to 51A-15-44 , inclusive, or 51A-2-25 to 51A-2-27 , inclusive, or 51A-6A-35 to 51A-6A-46 , inclusive. Disclosure of confidential information may be made only to formal governmental regulatory bodies which have a need for the confidential information.

Source: SL 2004, ch 312, § 5; SL 2015, ch 240, § 7.
S.D. Codified Laws § 51A-17-62 — SD Code / Title 51A / Chapter 17 / Section 51A-17-62
Individual controlling a licensee or applicant--Information required
Status: in_force

Any individual in control of a licensee or applicant or any individual that seeks to acquire control of a licensee, or each key individual must furnish to the director through NMLS the following items:

(1) The individual's fingerprints for submission to the Federal Bureau of Investigation and the director for purposes of a national criminal history background check, unless the person currently resides outside of the United States and has resided outside of the United States for the last ten years; and

(2) Personal history and experience in a form and in a medium prescribed by the director to obtain the following:

(a) An independent credit report from a consumer reporting agency unless the individual does not have a Social Security number, in which case, this requirement shall be waived;

(b) Information related to any criminal convictions or pending charges; and

(c) Information related to any regulatory or administrative action and any civil litigation involving claims of fraud, misrepresentation, conversion, mismanagement of funds, breach of fiduciary duty, or breach of contract.

Source: SL 2024, ch 196, § 11.
S.D. Codified Laws § 51A-5-1.1 — SD Code / Title 51A / Chapter 5 / Section 51A-5-1.1
Powers of banks engaging in trust business
Status: in_force

Banks engaging in the trust business pursuant to this chapter have all powers necessary and incidental to carrying on the trust business, including:

(1) Acting as agent, custodian, or attorney-in-fact for any person, and, in such capacity, taking and holding property on deposit for safekeeping and acting as general or special agent or attorney-in-fact in the acquisition, management, sale, assignment, transfer, encumbrance, conveyance, or other disposition of property, in the collection or disbursement of income from or principal of property and, generally in any matter incidental to any of the foregoing;

(2) Acting as registrar or transfer agent for any corporation, partnership, association, municipality, state, or public authority, and in such capacity, receiving and disbursing money, transferring, registering, and countersigning certificates of stock, bonds or other evidences of indebtedness or securities and performing any and all acts which may be incidental thereto;

(3) Acting as trustee or fiduciary under any mortgage or bond issued by a person;

(4) Acting as trustee or fiduciary under any trust established by a person;

(5) Acting as fiduciary, assignee for the benefit of creditors, receiver or trustee under or pursuant to the order or direction of any court or public official of competent jurisdiction;

(6) Acting as fiduciary, guardian, conservator, assignee, or receiver of the estate of any person and as executor of the last will and testament or administrator, fiduciary or personal representative of the estate of any deceased person when appointed by a court or public official of competent jurisdiction;

(7) Establishing and maintaining common trust funds or collective investment funds pursuant to the provisions of chapter 55-6 ; or

(8) Acting in any fiduciary capacity and performing any act as a fiduciary which a trust company organized under chapter 51A-6A may perform.

Source: SL 1995, ch 268, § 85; SL 2011, ch 212, § 20; SL 2021, ch 203, § 1.
S.D. Codified Laws § 51A-11-8 — SD Code / Title 51A / Chapter 11 / Section 51A-11-8
Corporate lessee
Status: in_force

If the lessee is a corporation and the president, treasurer, or secretary certifies that certain designated persons are authorized to enter the box, the lessor may permit such designated person to enter without liability therefor.

Source: SL 1969, ch 11, § 9.8; SDCL, § 51-23-8.
S.D. Codified Laws § 51A-17-75 — SD Code / Title 51A / Chapter 17 / Section 51A-17-75
Acquisition of control--Application--Investigation
Status: in_force

When an application for acquisition of control under § 51A-17-72 is filed and considered complete under § 51A-17-73 , the director must investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the person, or group of persons acting in concert, seeking to acquire control. The director shall approve an acquisition of control pursuant to this § 51A-17-72 if the director finds that all of the following conditions have been fulfilled:

(1) The requirements of subdivisions 51A-17-72 (2) and (4) have been met, as applicable; and

(2) The financial condition and responsibility, financial and business experience, competence, character, and general fitness of the person, or group of persons acting in concert, seeking to acquire control; and the competence, experience, character, and general fitness of the key individuals and persons that would be in control of the licensee after the acquisition of control indicate that it is in the interest of the public to permit the person, or group of persons acting in concert, to control the licensee.

Source: SL 2024, ch 196, § 24.
S.D. Codified Laws § 51A-6A-11.3 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-11.3
Approval of other office space requirements
Status: in_force

Upon application by a trust company, the director may approve office space that does not meet the requirements of § 51A-6A-11.2 if the director determines the nature and degree of risks presented by the trust company are low based upon a review of the size, nature, and number of accounts administered by the trust company, the structure and business plan of the trust company approved by the division, and the number of employees or persons performing services for the trust company in South Dakota.

If the size, risk profile, or rate of growth of a trust company changes, or if a trust company's office space is insufficient to facilitate onsite examinations by the division, the director may impose additional office space requirements.

Source: SL 2016, ch 231, § 6.
S.D. Codified Laws § 51A-17-114 — SD Code / Title 51A / Chapter 17 / Section 51A-17-114
False statement, misrepresentation, or false certification--Service without license--Penalty
Status: in_force

(1) A person that intentionally makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained under this chapter or that intentionally makes a false entry or omits a material entry in such a record is guilty of a Class 6 felony.

(2) A person that knowingly engages in an activity for which a license is required under this chapter without being licensed under this chapter and who receives more than five hundred dollars in compensation within a thirty-day period from this activity is guilty of a Class 6 felony.

(3) A person that knowingly engages in an activity for which a license is required under this chapter without being licensed under this chapter and who receives no more than five hundred dollars in compensation within a thirty-day period from this activity is guilty of a Class 1 misdemeanor.

Source: SL 2024, ch 196, § 63.
S.D. Codified Laws § 51A-6A-3 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-3
"Community" defined
Status: in_force

For the purposes of this chapter, community shall be broadly construed and shall include geographic or market based parameters, or both.

Source: SL 1995, ch 268, § 1B.
S.D. Codified Laws § 51A-8-1 — SD Code / Title 51A / Chapter 8 / Section 51A-8-1
"Remote service unit" defined
Status: in_force

The term, remote service unit, as used in this chapter means an automated teller machine or ATM which is a manned or unmanned device located separate and apart from a bank or branch bank through or by means of which information relating to banking services rendered to the public is electronically stored and transmitted, whether instantaneously or otherwise, to a bank and which provides for cash withdrawals and the depositing of funds.

Source: SL 1976, ch 305, § 1; SL 1988, ch 377, § 129; SDCL, § 51-20A-1; SL 1996, ch 282, § 1.
S.D. Codified Laws § 51A-2-30 — SD Code / Title 51A / Chapter 2 / Section 51A-2-30
Banking special revenue fund created--Disbursements
Status: in_force

There is hereby created in the state treasury the banking special revenue fund. Moneys deposited to this fund shall be expended as directed by the Legislature.

Source: SL 1978, ch 355, § 2; SL 1988, ch 377, § 46; SDCL, § 51-16-29.1.
S.D. Codified Laws § 51A-6A-35 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-35
Authority of trust company revoked upon obstruction or interference with, or refusal to submit to, examination of director
Status: in_force

If any officer of any trust company refuses to submit the books, records, papers, and instruments of the trust company to the examination and inspection of the director or in any manner obstruct or interfere with the examination and investigation of the trust company or refuse to be examined on oath concerning any of the affairs of the trust company, the director may revoke the authority of the trust company to transact business, and with the concurrence of the attorney general, may institute proceedings for the appointment of a receiver for the trust company.

Source: SL 1995, ch 268, § 33.
S.D. Codified Laws § 51A-15-34 — SD Code / Title 51A / Chapter 15 / Section 51A-15-34
Notice of liquidation by director or receiver
Status: in_force

As soon after commencement of liquidation by the director or receiver as practicable, he shall proceed as in § 51A-15-3 relating to voluntary liquidation by banks, except that no notice need be sent relating to fiduciary accounts as therein mentioned.

Source: SL 1969, ch 11, § 13.17; SL 1988, ch 377, § 176; SDCL, § 51-27-26.
S.D. Codified Laws § 51A-6A-52 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-52
Fiduciary capacity of successor trust company
Status: in_force

Upon the merger or consolidation of any trust company, the successor trust company, upon acquiring trust authority, may be appointed to act as trustee, personal representative, conservator, or any other fiduciary capacity to the same extent and with the same authority as the trust company to which it succeeds.

Source: SL 1995, ch 268, § 50.
S.D. Codified Laws § 51A-2-27 — SD Code / Title 51A / Chapter 2 / Section 51A-2-27
Injunctive relief
Status: in_force

If a person or bank that is subject to an order entered by the director or the commission pursuant to § 51A-2-22 , 51A-2-25 or 51A-2-26 , fails to comply with such order, the director or commission may seek an injunction from the circuit court in the county in which the bank is located, ordering such person or bank to cease and desist from the unsound or unlawful banking practice. An injunction shall be granted upon a showing that certain practices were engaged in that are contrary to sound banking practices, and that these practices contributed to the financial detriment of the bank.

Source: SL 1981, ch 346, § 11; SL 1988, ch 377, § 43; SDCL, § 51-16-27.2
S.D. Codified Laws § 51A-3-12 — SD Code / Title 51A / Chapter 3 / Section 51A-3-12
Endorsement and filing of approved articles--Notice of disapproval
Status: in_force

If the director approves a charter application, the director's approval shall be endorsed on the articles of incorporation or organization. The original shall be filed and recorded in the office of the secretary of state, and a certified copy shall be forthwith filed in the office of the director. The remaining copy shall be returned to the incorporators or organizers within twenty days of the action of the director. If the director disapproves an application, the director shall so notify the incorporators or organizers within twenty days of such disapproval, in writing, stating the reasons for such disapproval and shall return all copies of the articles of incorporation or organization to them.

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 § 51-3-8; SL 1969, ch 11, § 3.16; SL 1970, ch 265, § 21; SDCL § 51-17-18; SL 2008, ch 252, § 15.
S.D. Codified Laws § 51A-17-111 — SD Code / Title 51A / Chapter 17 / Section 51A-17-111
Suspension or revocation of an authorized delegate
Status: in_force

(1) The director may issue an order suspending or revoking the designation of an authorized delegate, if the director finds that:

(a) The authorized delegate violated this chapter or a rule adopted or an order issued under this chapter;

(b) The authorized delegate did not cooperate with an examination or investigation by the director;

(c) The authorized delegate engaged in fraud, intentional misrepresentation, or gross negligence;

(d) The authorized delegate is convicted of a violation of a state or federal anti-money laundering statute;

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

(f) The authorized delegate is engaging in an unsafe or unsound practice.

(2) In determining whether an authorized delegate is engaging in an unsafe or unsound practice, the director may consider the size and condition of the authorized delegate's provision of money transmission, the magnitude of the loss, the gravity of the violation of this chapter or a rule adopted or order issued under this chapter, and the previous conduct of the authorized delegate.

(3) An authorized delegate may apply for relief from a suspension or revocation of designation as an authorized delegate according to procedures prescribed by the director.

Source: SL 2024, ch 196, § 60.
S.D. Codified Laws § 51A-4-24 — SD Code / Title 51A / Chapter 4 / Section 51A-4-24
Factoring--Applicability of lending limit provisions
Status: in_force

A bank may engage in the business of purchasing open accounts. Where a bank purchases open accounts but the seller agrees to repurchase such accounts upon default, the seller's obligation to repurchase shall be taken into consideration in computing the bank's lending limit to the seller under § 51A-12-2 . Such obligation shall be measured by the total unpaid balance of the open accounts owned by the bank less the applicable seller's reserves against defaulted open accounts, if any. Where the seller's obligation to repurchase is limited, it shall be measured by the total amount of the open accounts which the seller may ultimately be obligated to repurchase.

Where no more than the agreed percentage of the price paid for such open accounts is retained and credited to a reserve to be held as a form of collateral security, and where the bank has no direct or indirect recourse against the seller for uncollectibility, neither the reserve nor the obligations of the parties liable on such accounts constitute obligations of the seller subject to the lending limit under § 51A-12-2 .

Source: SL 1969, ch 11, § 4.20; SL 1970, ch 265, § 33; SDCL, § 51-18-21.
S.D. Codified Laws § 51A-2-13 — SD Code / Title 51A / Chapter 2 / Section 51A-2-13
Rules promulgated by commission
Status: in_force

The commission may promulgate necessary rules pursuant to chapter 1-26 , consistent with the laws of this state, for the management and administration of banks and other banking entities, their subsidiaries and affiliates, over which it has jurisdiction as set forth in this title, and to regulate its own procedure and practice.

Source: SL 1933, ch 47, § 5; SDC 1939, § 6.0205 (3); SDCL, § 51-2-19; SL 1969, ch 11, § 2.13 (2); SL 1975, ch 290; SL 1977, ch 397; SL 1988, ch 377, § 28; SDCL, § 51-16-14.
S.D. Codified Laws § 51A-2-7 — SD Code / Title 51A / Chapter 2 / Section 51A-2-7
Appointment of State Banking Commission--Director as executive officer--Qualifications of members
Status: in_force

The commission shall consist of five members appointed by the Governor, all of whom shall be residents of the state. The director shall be the executive officer of the commission and shall comply with and enforce all orders and directions of the commission.

Three of the members of the commission shall be officers or directors of a state or national bank at the time of and during their appointment. However, no more than one member of the commission may be an officer or director of a national bank at the time of appointment. The remaining two members of the commission shall have the qualifications provided by law except that they need not be officers or directors of a bank, nor associated in any way with the business of banking.

Source: SL 1933, ch 47, § 1; SDC 1939, § 6.0201; SL 1941, ch 13; SL 1945, ch 26; SDCL, §§ 51-2-8, 51-2-17; SL 1969, ch 11, § 2.6; SL 1970, ch 265, § 3.1; SL 1975, ch 7, § 2; SL 1978, ch 350, § 2; SL 1988, ch 377, § 21; SDCL, § 51-16-6.
S.D. Codified Laws § 51A-10-3 — SD Code / Title 51A / Chapter 10 / Section 51A-10-3
Deposits in name of two or more persons
Status: in_force

Whenever a deposit has been made or shall hereafter be made, in any bank in the names of two or more persons, payable to any of them or payable to the survivor of them, such deposit or any part thereof, or any interest or dividend thereon, may be paid to any one or more of said persons whether the other be living or not, and the receipt or acquittance of the person or persons so paid shall be a valid and sufficient release and discharge to the bank for any payment so made.

Source: SL 1911, ch 128; RC 1919, § 8997; SDC 1939, § 6.0414; SL 1951, ch 13; SDCL, § 51-10-11; SL 1969, ch 11, § 8.4; SDCL, § 51-22-5.
S.D. Codified Laws § 51A-4-20.1 — SD Code / Title 51A / Chapter 4 / Section 51A-4-20.1
"Community development corporation" defined
Status: in_force

For the purposes of §§ 51A-4-20 to 51A-4-20.3 , inclusive, the term "community development corporation" is limited to those community development corporations that are substantially invested in South Dakota communities.

Source: SL 1992, ch 334, § 1A.
S.D. Codified Laws § 51A-11-2 — SD Code / Title 51A / Chapter 11 / Section 51A-11-2
Regulation of safe deposit by commission
Status: in_force

The leasing of safe deposit boxes by a lessor shall be subject to such rules as the commission may prescribe, and such rules shall be promulgated with a view toward ensuring as much privacy and security to the lessee as sound banking practice will allow.

Source: SL 1969, ch 11, § 9.2; SL 1988, ch 377, § 143; SDCL, § 51-23-2.
S.D. Codified Laws § 51A-7-9 — SD Code / Title 51A / Chapter 7 / Section 51A-7-9
"Detached" defined
Status: in_force

A drive - in facility is "detached" within the meaning of this chapter when any part of any structure in which any of the services of the drive - in facility are carried on is located at least fifty feet from the building in which the main banking room of the bank or branch bank operating the drive - in facility is located.

Source: SL 1965, ch 21, § 2; SDCL, § 51-8-10; SL 1969, ch 11, § 6.7; SL 1981, ch 346, § 43; SDCL, § 51-20-7.
S.D. Codified Laws § 51A-15-12 — SD Code / Title 51A / Chapter 15 / Section 51A-15-12
"Insolvent" defined
Status: in_force

"Insolvent" means incapable of meeting the demands of creditors or having liabilities which exceed assets.

Source: SL 1982, ch 336, § 1; SDCL, § 51-27-10.1.
S.D. Codified Laws § 51A-12-2.2 — SD Code / Title 51A / Chapter 12 / Section 51A-12-2.2
Expiration of exception--New exception request
Status: in_force

Any exception granted by the director under § 51A-12-2.1 expires when the agricultural operating loan matures or twelve months after the exception is granted, whichever occurs first. A new exception request shall be submitted prior to the renewal of the agricultural operating loan if the loan to be renewed would exceed the loan or credit limitation as provided in § 51A-12-2 , unless otherwise approved by the director.

Source: SL 2012, ch 234, § 2.
S.D. Codified Laws § 51A-4-45 — SD Code / Title 51A / Chapter 4 / Section 51A-4-45
Contracts for services
Status: in_force

Unless prohibited by another provision of statute, a financial institution, known as the customer institution, may contract with another financial institution, known as the service institution, to grant the service institution the authority to render services to the depositors, borrowers, or other customers of the customer institution, after notice of the proposed contract is given to the director and the director does not object to the contract within thirty days of the notice. A contract may include authority to conduct transactions at or through any principal office, branch, or detached facility of either financial institution which is party to the contract. For the purposes of this section, the service institution is not considered a branch of the customer institution. Nothing in this section or § 51A-4-44 may be construed to apply to any loan production office as defined in subdivision 51A-1-2(18).

Source: SL 1995, ch 267, § 2; SL 2012, ch 252, § 15; SL 2015, ch 239, § 4.
S.D. Codified Laws § 51A-6A-2 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-2
Confidential information
Status: in_force

For the purposes of this chapter, confidential information includes the names of stockholders or owners, names and addresses of the members of a private trust company's governing board, ownership information, capital contributions, addresses, business affiliations, state and commission findings through any examination or inquiry of any kind, and any information required to be reported or filed with the director or the commission, and any information or agreement relating to any merger, consolidation, or transfer.

Source: SL 1995, ch 268, § 1A; SL 2015, ch 240, § 2; SL 2016, ch 231, § 2.
S.D. Codified Laws § 51A-15-44 — SD Code / Title 51A / Chapter 15 / Section 51A-15-44
Accounting by director or receivers after liquidation--Cancellation of charter--Order and certificate of dissolution
Status: in_force

When the assets have been distributed in accordance with this chapter, the director or receiver shall file an account with the circuit court. Upon approval thereof, the director or receiver shall be relieved of liability in connection with the liquidation and the court 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 1927, ch 58, §§ 10, 11; SL 1933, ch 55, §§ 10, 11; SDC 1939, § 6.0631; SDCL, § 51-14-62; SL 1969, ch 11, § 13.24; SL 1970, ch 265, § 73; SL 1988, ch 377, § 186; SDCL, § 51-27-36; SL 2005, ch 202, § 18.
S.D. Codified Laws § 51A-18-5 — SD Code / Title 51A / Chapter 18 / Section 51A-18-5
Receipt for kiosk transaction required--Contents
Status: in_force

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

(1) Complies with the requirements of § 51A-17-96 ;

(2) Is available to the user both electronically and in paper form; and

(3) Contains:

(a) A description of the type, value, and precise time of the transaction;

(b) A list of each applicable virtual currency address, together with any unique identifiers used to permanently reference transactions on distributed ledgers;

(c) The exchange rate, to United States dollars;

(d) A statement of the refund policy pursuant to § 51A-18-7 ; and

(e) A full listing of all fees and charges applied to the transaction.

Source: SL 2026, ch 193, § 5.
S.D. Codified Laws § 51A-17-89 — SD Code / Title 51A / Chapter 17 / Section 51A-17-89
Maintenance of records
Status: in_force

(1) Licensee shall maintain the following records, for determining its compliance with this chapter for at least three years:

(a) A record of each outstanding money transmission obligation sold;

(b) A general ledger posted at least monthly containing all asset, liability, capital, income, and expense accounts;

(c) Bank statements and bank reconciliation records;

(d) Records of outstanding money transmission obligations;

(e) Records of each outstanding money transmission obligation paid within the three-year period;

(f) A list of the last known names and addresses of all of the licensee's authorized delegates; and

(g) Any other records the director reasonably requires by rule.

(2) The items specified in subdivision (1) of this section may be maintained in any form of record.

(3) Records specified in subdivision (1) of this section may be maintained outside this state if the records are made accessible to the director on seven business-days' notice that is sent in a record.

(4) All records maintained by the licensee as required in this section are open to inspection by the director pursuant to subdivision 51A-17-56 (1).

Source: SL 2024, ch 196, § 38.
S.D. Codified Laws § 51A-17-118 — SD Code / Title 51A / Chapter 17 / Section 51A-17-118
Validity--Provisions severable
Status: in_force

If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end, the provisions of this chapter are severable.

Source: SL 2024, ch 196, § 67.
S.D. Codified Laws § 51A-4-22 — SD Code / Title 51A / Chapter 4 / Section 51A-4-22
Purchase of retail installment contract--Terms and effect of agreement
Status: in_force

A bank may purchase or acquire or agree to purchase or acquire, from any seller, any retail installment contract on such terms and conditions and for such price as may be agreed upon between them. Any such agreement does not give rise to any agency relationship between the bank and such seller, neither being agent nor principal of the other.

Source: SL 1969, ch 11, § 4.17; SL 1988, ch 377, § 94; SDCL, § 51-18-18.
S.D. Codified Laws § 51A-17-92 — SD Code / Title 51A / Chapter 17 / Section 51A-17-92
Jurisdiction
Status: in_force

(1) The circuit court in an action brought by a licensee shall have jurisdiction to grant appropriate equitable or legal relief, including without limitation prohibiting the authorized delegate from directly or indirectly acting as an authorized delegate for any licensee in this state and the payment of restitution, damages, or other monetary relief if the circuit court finds that an authorized delegate failed to remit money in accordance with the written contract required by subdivision 51A-17-90 (2) or as otherwise directed by the licensee or required by law.

(2) If the circuit court issues an order prohibiting a person from acting as an authorized delegate for any licensee pursuant to subdivision (1) of this section, the licensee that brought the action must report the order to the director within thirty days and must report the order through NMLS within ninety days.

(3) An authorized delegate who holds money in trust for the benefit of a licensee and knowingly fails to remit more than two thousand, five hundred dollars of such money is guilty of a Class 6 felony.

(4) An authorized delegate who holds money in trust for the benefit of a licensee and knowingly fails to remit no more than two thousand, five hundred dollars of such money is guilty of a Class 1 misdemeanor.

Source: SL 2024, ch 196, § 41.
S.D. Codified Laws § 51A-17-79 — SD Code / Title 51A / Chapter 17 / Section 51A-17-79
Notice of acquisition of control
Status: in_force

Persons in § 51A-17-78 in cooperation with the licensee shall notify the director within fifteen days after the acquisition of control.

Source: SL 2024, ch 196, § 28.
S.D. Codified Laws § 51A-6A-45.1 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-45.1
Liability of receiver
Status: in_force

No receiver, appointed pursuant to § 51A-6A-44 , is liable to any person for good faith compliance with any law, statute, rule, or judgment, decree, or order of a court. Nor is any receiver liable to any person for any action taken or omitted unless a court finds that the receiver acted or failed to act as a result of misfeasance, bad faith, gross negligence, or reckless disregard of duty.

Source: SL 2005, ch 260, § 11.
S.D. Codified Laws § 51A-5-23 — SD Code / Title 51A / Chapter 5 / Section 51A-5-23
Holding in bulk of securities deposited in clearing corporation--Merger of certificates
Status: in_force

Securities of the same class of the same issuer may be merged and held in bulk in the name of the nominee of such clearing corporation with any other such securities deposited in such clearing corporation by any person regardless of the ownership of such securities, and certificates of small denomination may be merged into one or more certificates of larger denomination.

Source: SL 1978, ch 357, § 2; SDCL, § 51-19-10.3.
S.D. Codified Laws § 51A-15-43 — SD Code / Title 51A / Chapter 15 / Section 51A-15-43
Disposition of unclaimed funds after liquidation
Status: in_force

Unclaimed funds remaining after the completion of the liquidation shall be transferred to the state treasurer for disposal pursuant to chapter 43-41B .

Source: SDC 1939, § 6.0618; SDCL, § 51-14-54; SL 1969, ch 11, § 13.23; SL 1974, ch 301, § 5; SL 1988, ch 377, § 185; SDCL, § 51-27-35.
S.D. Codified Laws § 51A-2-6 — SD Code / Title 51A / Chapter 2 / Section 51A-2-6
Staff employees--Compensation--Dismissal--Background investigation
Status: in_force

The division may employ examiners and special examiners, legal counsel, clerks, stenographers and other aides as deemed necessary to assist the director in the performance of the director's duties. The division shall fix the compensation of each employee and may dismiss any employee not subject to the provisions of chapter 3-6D at will.

Each person hired by the Division of Banking, in any capacity, shall agree to submit to a background investigation, by means of fingerprint checks by the Division of Criminal Investigation and the Federal Bureau of Investigation. The division shall submit completed fingerprint cards to the Division of Criminal Investigation before the prospective new employee enters into service. If no disqualifying record is identified at the state level, the fingerprints shall be forwarded by the Division of Criminal Investigation to the Federal Bureau of Investigation for a national criminal history record check. Any person whose employment is subject to the requirements of this section may enter into service on a temporary basis pending receipt of results from the background investigation. The division may, without liability, withdraw its offer of employment or terminate the temporary employment without notice if the report reveals that the person has been convicted of any financial crime, or any crime that otherwise reveals circumstances that reasonably suggest that the person should not be employed by the division.

Source: SL 1909, ch 222, art 1, §§ 2, 10; SL 1911, ch 256, §§ 2, 12; SL 1915, ch 102, art 1, §§ 2, 13; SL 1917, ch 140, § 1; RC 1919, §§ 8918, 8929; SL 1921, ch 135; SL 1925, ch 98; SL 1927, ch 51; SL 1933, ch 56; SDC 1939, §§ 6.0208, 6.0209, 6.0211, 6.0212; SDCL §§ 51-2-3 to 51-2-6; SL 1969, ch 11, § 2.4; SL 1988, ch 377, § 20; SDCL § 51-16-4; SL 2007, ch 275, § 1; SL 2018, ch 12, § 24.
S.D. Codified Laws § 51A-17-57 — SD Code / Title 51A / Chapter 17 / Section 51A-17-57
Director participation in multistate supervisory processes
Status: in_force

(1) To efficiently and effectively administer and enforce this chapter and to minimize regulatory burden, the director is authorized and encouraged to participate in multistate supervisory processes established between states and coordinated through the Conference of State Bank Supervisors, Money Transmitter Regulators Association, and affiliates and successors thereof for all licensees that hold licenses in this state and other states. As a participant in multistate supervision, the director may:

(a) Cooperate, coordinate, and share information with other state and federal regulators in accordance with § 51A-17-55 ;

(b) Enter into written cooperation, coordination, or information-sharing contracts or agreements with organizations the membership of which is made up of state or federal governmental agencies; and

(c) Cooperate, coordinate, and share information with organizations the membership of which is made up of state or federal governmental agencies, provided that the organizations agree in writing to maintain the confidentiality and security of the shared information in accordance with § 51A-17-55 .

(2) The director may not waive, and nothing in this section constitutes a waiver of, the director's authority to conduct an examination or investigation or otherwise take independent action authorized by this chapter or a rule adopted or order issued under this chapter to enforce compliance with applicable state or federal law.

(3) A joint examination or investigation, or acceptance of an examination or investigation report, does not waive an examination assessment provided for in this chapter.

Source: SL 2024, ch 196, § 6.
S.D. Codified Laws § 51A-15-35 — SD Code / Title 51A / Chapter 15 / Section 51A-15-35
Disposition of safe deposit boxes in liquidation by director or receiver
Status: in_force

Safe deposit boxes in banks being liquidated by the director, the contents of which have not been removed before the date specified, shall be disposed of by the director or receiver as in § 51A-15-5 .

Source: SL 1969, ch 11, § 13.18; SL 1988, ch 377, § 177; SDCL, § 51-27-27.
S.D. Codified Laws § 51A-10-2 — SD Code / Title 51A / Chapter 10 / Section 51A-10-2
Minors' accounts
Status: in_force

A bank may operate its deposit account in the name of a minor or in the name of two or more persons, one or more of whom are minors, with the same effect upon its liability as if such minors were of full age.

Source: SL 1909, ch 222, art 2, § 44; SL 1915, ch 102, art 2, § 48; RC 1919, § 8996; SDC 1939, § 6.0413; SDCL, § 51-10-10; SL 1969, ch 11, § 8.3; SDCL, § 51-22-3.
S.D. Codified Laws § 51A-17-63 — SD Code / Title 51A / Chapter 17 / Section 51A-17-63
Background report--Individual in control residing outside United States
Status: in_force

If any individual in control of a licensee or applicant or any individual that seeks to acquire control of a licensee or each key individual has resided outside of the United States at any time in the last ten years, the individual must also provide an investigative background report prepared by an independent search firm that meets the following requirements:

(1) At a minimum, the search firm shall:

(a) Demonstrate that the search firm has sufficient knowledge, resources, and employs accepted and reasonable methodologies to conduct the research of the background report; and

(b) Not be affiliated with or have an interest with the individual the search firm is researching, and

(2) At a minimum, the investigative background report must be written in the English language and must contain the following:

(a) If available in the individual's current jurisdiction of residency, a comprehensive credit report or any equivalent information obtained or generated by the independent search firm to accomplish the report, including a search of the court data in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked;

(b) Criminal records information for the past ten years, including, but not limited to, felonies, misdemeanors, or similar convictions for violations of law in the countries, provinces, states, cities, towns, and contiguous areas where the individual resided and worked;

(c) Employment history;

(d) Media history, including an electronic search of national and local publications, wire services, and business applications; and

(e) Financial services-related regulatory history, including but not limited to, money transmission, securities, banking, insurance, and mortgage-related industries.

Source: SL 2024, ch 196, § 12.
S.D. Codified Laws § 51A-7-14 — SD Code / Title 51A / Chapter 7 / Section 51A-7-14
Interstate branches--Approval required
Status: in_force

With prior approval of the director, any South Dakota state bank may establish and maintain a branch or acquire a branch in a state other than South Dakota. A South Dakota state bank may conduct any activities at a branch outside of South Dakota that are permissible for a bank chartered by the host state where the branch is located.

Source: SL 1996, ch 280, § 2; SL 2008, ch 252, § 35.
S.D. Codified Laws § 51A-15-6 — SD Code / Title 51A / Chapter 15 / Section 51A-15-6
Depositor's or creditor's rights not impaired by voluntary liquidation--Return of safe deposit rental
Status: in_force

The approval of an application for voluntary liquidation shall not impair any right of a depositor or creditor to payment in full and all lawful claims of creditors and depositors shall promptly be paid. The unearned portion of the rental of a safe deposit box shall be returned to the lessee.

Source: SL 1969, ch 11, § 13.2 (5); SL 1970, ch 265, § 62; SDCL, § 51-27-6.
S.D. Codified Laws § 51A-15-10 — SD Code / Title 51A / Chapter 15 / Section 51A-15-10
Cancellation of voluntary liquidation
Status: in_force

A bank may, at any time prior to the director's cancellation of its charter, revoke its intention to voluntarily liquidate under § 51A-15-1 , if it receives approval of its action upon an affirmative vote of at least two - thirds of the voting shares of the bank. Written evidence of its intentions delivered to the director prior to cancellation are considered an effective revocation.

Source: SL 1988, ch 377, § 164; SDCL, § 51-27-9.1.
S.D. Codified Laws § 51A-1-16 — SD Code / Title 51A / Chapter 1 / Section 51A-1-16
Severability of provisions
Status: in_force

If any provision of this title or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications to this title which can be given effect without the invalid provision or application, and to this end the provisions of this title are declared to be severable.

Source: SL 1969, ch 11, § 14.2, SDCL, §§ 51-15-14, 51-15-17.
S.D. Codified Laws § 51A-15-26 — SD Code / Title 51A / Chapter 15 / Section 51A-15-26
Borrowing money by director in possession
Status: in_force

With the approval of the commission, the director may borrow money in the name of the bank in his possession and may pledge its assets as security for the loan.

Source: SL 1933, ch 54, § 1; SDC 1939, § 6.0629; SDCL, § 51-14-25; SL 1969, ch 11, § 13.9; SDCL, § 51-27-18.
S.D. Codified Laws § 51A-17-107 — SD Code / Title 51A / Chapter 17 / Section 51A-17-107
Director to participate in multistate processes on letters of credit
Status: in_force

The director is authorized and encouraged to participate in multistate processes designed to facilitate the issuance and administration of letters of credit, including, but not limited to, services provided by the NMLS and State Regulatory Registry, LLC.

Source: SL 2024, ch 196, § 56.
S.D. Codified Laws § 51A-4-20.3 — SD Code / Title 51A / Chapter 4 / Section 51A-4-20.3
Promulgation of rules for investment in community development corporations
Status: in_force

The Banking Commission may, by rule promulgated pursuant to chapter 1-26 , establish additional requirements concerning a bank's investment in community development corporations and may establish criteria for permissible community development corporation investments.

Source: SL 1992, ch 334, § 1C.
S.D. Codified Laws § 51A-6A-42 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-42
Director to take charge of insolvent trust company--Appointment of special assistant
Status: in_force

If it appears upon the examination of any trust company or from any report made to the director that any trust company is insolvent, the director shall take charge of the trust company and all of its property and assets. In so doing the director may appoint a special assistant to take charge temporarily of the affairs of the insolvent trust company until a receiver is appointed. The assistant shall qualify, give bond, and receive compensation the same as the regular examiner, but the compensation shall be paid by the insolvent trust company, or in case of the appointment of a receiver, allowed by the court as costs in the case. No trust company may continue in the charge of a special assistant for a longer period than six months.

Source: SL 1995, ch 268, § 40; SL 2012, ch 252, § 19.
S.D. Codified Laws § 51A-4-20.4 — SD Code / Title 51A / Chapter 4 / Section 51A-4-20.4
Investments to promote public welfare authorized--Limitations
Status: in_force

A bank may make investments designed primarily to promote the public welfare, including the welfare of low and moderate income communities or families. A bank may make such investments directly or by purchasing interests in an entity primarily engaged in making such investments. No bank may make any such investment if the investment would expose the bank to unlimited liability. The director shall limit a bank's investments in any one project and a bank's aggregate investments under this section. A bank's aggregate investments under this section may not exceed an amount equal to the sum of five percent of the bank's capital, surplus, and undivided profits, unless the director determines by order that the higher amount will not pose a significant risk to the bank and the bank is adequately capitalized. In no case may a bank's aggregate investments under this section exceed an amount equal to the sum of ten percent of the bank's capital stock actually paid in and unimpaired and ten percent of the bank's unimpaired surplus fund.

Source: SL 2002, ch 218, § 1; SL 2015, ch 239, § 2.
S.D. Codified Laws § 51A-2-20 — SD Code / Title 51A / Chapter 2 / Section 51A-2-20
Examination by director upon application by board--Fees and expenses
Status: in_force

The director shall examine any bank upon a formal application made by its board of directors, in which event, in addition to the regular fees prescribed, such bank shall pay all actual expenses incurred in connection therewith.

Source: SL 1909, ch 222, art 1, § 4; SL 1911, ch 256, § 1915, ch 102, art 1, § 4; RC 1919, § 8920; SL 1935, ch 56; SDC 1939, § 6.0215; SDCL, § 51-12-9; SL 1969, ch 11, § 2.15; SL 1988, ch 377, § 35; SDCL, § 51-16-22.
S.D. Codified Laws § 51A-11-10 — SD Code / Title 51A / Chapter 11 / Section 51A-11-10
Unpaid rental--Procedures for opening safe deposit and disposition of contents
Status: in_force

If the rental due on a safe deposit box has not been paid for one year, the lessor may send a notice by registered or certified mail to the last known address of the lessee stating that the safe deposit box will be opened and its contents stored at the expense of the lessee unless payment of the rental is made within thirty days. After such time the box may be opened in the presence of an officer of the lessor and a notary public. The notary public shall issue a certificate reciting the name of the lessee, the date of the opening of the box, the names of the witnesses present, and a list of its contents. The certificate with the contents of the box shall be included in a sealed package marked with the lessee's name and date of opening, and it shall then be placed in the general vaults of the lessor at a rental not exceeding the rental previously charged for the box until it is claimed or delivered to the state treasurer for disposal pursuant to chapter 43-41B . The state treasurer shall reimburse the lessor for unpaid box rentals from the proceeds of the package, if any.

Source: SL 1969, ch 11, § 9.10; SL 1970, ch 265, § 50; SL 1974, ch 301, § 2; SL 1982, ch 28, § 18; SDCL, § 51-23-10.
S.D. Codified Laws § 51A-7-19 — SD Code / Title 51A / Chapter 7 / Section 51A-7-19
Examination of out-of-state bank's South Dakota branch
Status: in_force

The director may make such examinations of any branch established and maintained in South Dakota pursuant to §§ 51A-7-13 to 51A-7-26 , inclusive, by an out - of - state state bank as the director may deem necessary to determine whether the branch is operated in compliance with the laws of South Dakota and in accordance with safe and sound banking practices. The provisions of § 51A-2-18 apply to the examinations.

Source: SL 1996, ch 280, § 7; SL 2021, ch 204, § 3.
S.D. Codified Laws § 51A-2-14.2 — SD Code / Title 51A / Chapter 2 / Section 51A-2-14.2
Restrictions on federally chartered banks apply to state chartered banks
Status: in_force

The restrictions, limitations, and requirements applicable to specific powers or authorities of federally chartered banks apply to state banks exercising those powers or authorities permitted under § 51A-2-14.1 but only insofar as the restrictions, limitations, and requirements relate to exercising the powers or authorities granted banks solely under § 51A-2-14.1 .

Source: SL 1999, ch 233, § 2.
S.D. Codified Laws § 51A-4-4 — SD Code / Title 51A / Chapter 4 / Section 51A-4-4
Insurance business authorized
Status: in_force

A bank is expressly empowered, directly or through subsidiaries, to engage in all facets of the insurance business.

Source: SL 1983, ch 356, § 5; SDCL, §§ 51-18-1.3, 51-18-30.
S.D. Codified Laws § 51A-3-34 — SD Code / Title 51A / Chapter 3 / Section 51A-3-34
Board of directors--Meetings
Status: in_force

The board of directors shall hold regular meetings at times prescribed in the bylaws of the bank. At no time may the bylaws provide for fewer meetings than the minimum number permitted by rule promulgated by the commission pursuant to chapter 1-26 . Any director of the bank or the director of the Division of Banking may call a special meeting. The board of directors or an executive committee of not less than one - third of the board shall review at least quarterly the transactions occurring since the last review.

Source: SL 1909, ch 222, art 2, § 10; SL 1911, ch 255, § 15; SL 1915, ch 102, § 1, art 2, § 12; RC 1919, §§ 8958, 9045; SL 1925, ch 102, § 1; SL 1927, ch 214, § 1; SDC 1939, § 6.0316; SL 1953, ch 14, § 2; SDCL, § 51-3-16; SL 1969, ch 11, § 3.27; SL 1988, ch 377, § 76; SL 1989, ch 412; SDCL, § 51-17-32; SL 2020, ch 204, § 2.
S.D. Codified Laws § 51A-9-2 — SD Code / Title 51A / Chapter 9 / Section 51A-9-2
Investment in bank service corporation
Status: in_force

Any bank shall have power to purchase capital stock, bonds, debentures, or other such obligations of a bank service corporation.

Source: SL 1963, ch 29, § 2; SDCL, § 51-9-3; SL 1969, ch 11, § 7.2; SDCL, § 51-21-2.
S.D. Codified Laws § 51A-4-28 — SD Code / Title 51A / Chapter 4 / Section 51A-4-28
Restricted investment in mortgage banking companies authorized
Status: in_force

Any bank may purchase and own stock and capital notes or other evidence of debt issued by a mortgage banking company, or its affiliate, the principal business of which is the extension of short, intermediate or long - term credit to individuals, partnerships and corporations, which credit is secured by real estate mortgages. A bank shall own at least eighty percent of the stock of any such mortgage banking company and may not obligate more than thirty percent of its capital stock and surplus and undivided profits for such purpose.

Source: SL 1984, ch 313; SL 1988, ch 377, § 99; SDCL, § 51-18-23.2.
S.D. Codified Laws § 51A-15-21 — SD Code / Title 51A / Chapter 15 / Section 51A-15-21
Director's authority to take action in emergency without majority consent of commission
Status: in_force

If, in the opinion of the director, an emergency exists which will result in serious losses to the depositors and creditors, he may suspend all activities and take possession of a bank without the consent of a majority of the members of the commission.

Source: SL 1969, ch 11, § 13.7 (1); SL 1982, ch 336, § 3; SL 1988, ch 377, § 168; SDCL, § 51-27-14.
S.D. Codified Laws § 51A-15-2 — SD Code / Title 51A / Chapter 15 / Section 51A-15-2
Ceasing to do business and winding up affairs on voluntary liquidation
Status: in_force

Upon approval by the commission, pursuant to § 51A-15-1 , a bank shall forthwith cease to do business, shall have only the powers necessary to effect an orderly liquidation and shall proceed to pay its depositors and creditors and to wind up its affairs.

Source: SL 1969, ch 11, § 13.2; SDCL, § 51-27-2.
S.D. Codified Laws § 51A-3-32 — SD Code / Title 51A / Chapter 3 / Section 51A-3-32
Board of directors--Number of members--Citizenship requirements--Election
Status: in_force

The board of directors of every bank shall consist of not less than five nor more than twenty - five members. At all times, at least three - fourths of the directors shall be citizens of the United States. With the exception of the president or the chief executive officer, the directors shall be elected by the shareholders.

Source: SDC 1939, § 6.0315; SDCL, § 51-3-13; SL 1969, ch 11, § 3.26; SL 1970, ch 265, § 25; SL 1981, ch 346, § 26; SL 1983, ch 14, § 22; SL 1988, ch 377, § 75; SDCL, § 51-17-29; SL 1996, ch 279, § 1.
S.D. Codified Laws § 51A-2-14 — SD Code / Title 51A / Chapter 2 / Section 51A-2-14
Rules granting additional authority to banks to promote competitive equality
Status: in_force

The commission may adopt rules under its jurisdiction:

(1) To authorize banks to participate in any public agency hereafter created under the laws of this state or the United States, the purpose of which is to afford advantages or safeguards to banks or to depositors, and to comply with all requirements and conditions imposed upon such participants;

(2) Deleted by SL 1999, ch 233, § 3.

(3) To allow banks to engage in any other banking or nonbanking activities, not prohibited by state law, which the commission deems appropriate; and

(4) To authorize banks to use new or different forms of accepting deposits, making loans, transferring funds, offering services and such other subjects as it deems appropriate.

In adopting rules pursuant to this section, the commission shall adopt only such rules that, in the opinion of the commission, promote competitive equality between state chartered banks, national banks, and other financial institutions.

Source: SL 1969, ch 11, § 2.13 (4); SL 1970, ch 265, § 7; SL 1981, ch 346, § 5; SDCL, § 51-16-16; SL 1988, ch 377, § 31; SDCL, § 51-16-14.1; SL 1999, ch 233, § 3.
S.D. Codified Laws § 51A-2-9 — SD Code / Title 51A / Chapter 2 / Section 51A-2-9
Chairman and secretary of commission--Per diem and expenses of members
Status: in_force

The commission shall elect a chairman from its members. The commission shall select a secretary who need not be one of its members. Each member shall be reimbursed for his expenses and shall receive an allowance for each day actually and necessarily spent in the performance of his duties in accordance with § 4-7-10.4 .

Source: SL 1933, ch 47, § 2; SDC 1939, § 6.0201; SL 1941, ch 13; SL 1945, ch 26; SL 1966, ch 11; SDCL, § 51-2-15; SL 1969, ch 11, § 2.9; SL 1978, ch 350, § 3; SDCL, § 51-16-9.
S.D. Codified Laws § 51A-4-25 — SD Code / Title 51A / Chapter 4 / Section 51A-4-25
Bank investments--Restrictions set by rule--Limitations
Status: in_force

A bank may purchase for its own account investment securities and registered mutual funds that invest exclusively in securities of the United States or its agencies and annuities as defined in § 51A-4-25.1 under such limits and restrictions as the commission may prescribe by rule, promulgated pursuant to chapter 1-26 . In no event may the total amount of the investment securities of any one obligor or maker held by the bank for its own account exceed twenty percent of the capital stock and surplus and ten percent of the undivided profits of such bank except as provided in § 51A-4-26 .

Source: SL 1969, ch 11, § 4.21; SL 1986, ch 400, § 14; SL 1988, ch 377, § 96; SDCL, § 51-18-22; SL 1994, ch 362; SL 2002, ch 219, § 1; SL 2020, ch 4, § 28.
S.D. Codified Laws § 51A-15-5 — SD Code / Title 51A / Chapter 15 / Section 51A-15-5
Disposition of safe deposit on voluntary liquidation
Status: in_force

The contents of safe deposit boxes which have not been removed within thirty days after demand shall be opened and the contents dealt with in the manner provided for boxes upon which the payment of rental is in default and the sealed packages containing the contents and the certificates together with any other unclaimed property held by the bank as bailee and certified inventories thereof shall be transferred to the state treasurer who shall retain it for one year unless sooner claimed by the person entitled thereto. After one year the state treasurer shall dispose of the property pursuant to chapter 43-41B .

Source: SL 1969, ch 11, § 13.2 (4); SL 1974, ch 301, § 3; SDCL, § 51-27-5.
S.D. Codified Laws § 51A-17-95 — SD Code / Title 51A / Chapter 17 / Section 51A-17-95
Electronic receipt
Status: in_force

(1) Section 51A-17-96 does not apply to:

(a) Money received for transmission subject to the federal Remittance Rule, 12 C.F.R. Part 1005 Subpart B (January 1, 2024);

(b) Money received for transmission that is not primarily for personal, family, or household purposes;

(c) 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; or

(d) Payroll processing services.

(2) For purposes of this chapter, the term "receipt" means a paper receipt, electronic record, or other written confirmation. For a transaction conducted in person, the receipt may be provided electronically if the sender requests or agrees to receive an electronic receipt. For a transaction conducted electronically or by phone, a receipt may be provided electronically. All electronic receipts shall be provided in a retainable form.

Source: SL 2024, ch 196, § 44.
S.D. Codified Laws § 51A-3-14 — SD Code / Title 51A / Chapter 3 / Section 51A-3-14
Call by incorporators for full payment of subscriptions--Issuance of certificate of authority by director--Commencement of business within one year
Status: in_force

The incorporators may call for the payment of subscriptions in full upon receipt of the notice that the articles of incorporation have been approved. The director shall issue a certificate of authority whenever it shall appear to him that the capital stock of such bank has been fully subscribed and paid in in money and such bank is lawfully entitled to commence business. No bank shall transact any business, except such as is incidental or necessarily preliminary to its organization, until such certificate of authority has been regularly issued by the director. Such certificate of authority shall be void if the bank named therein fails to commence business within one year from the date thereof.

Source: SL 1909, ch 222, art 2, §§ 5, 7; SL 1911, ch 255, §§ 7, 9; SL 1915, ch 102, art 2, §§ 6, 9; RC 1919, §§ 8953, 8955, 9038, 9039; SDC 1939, § 6.0306; SDCL, §§ 51-6-2, 51-6-4, 51-6-5; SL 1969, ch 11, § 3.17; SDCL, § 51-17-19.
S.D. Codified Laws § 51A-5-19 — SD Code / Title 51A / Chapter 5 / Section 51A-5-19
Oath or bond not required of bank to qualify as fiduciary
Status: in_force

No oath or bond shall be required of a bank to qualify upon appointment as a fiduciary unless the instrument creating a fiduciary position expressly provides otherwise.

Source: SL 1969, ch 11, § 5.8; SDCL, § 51-19-9.
S.D. Codified Laws § 51A-2-23 — SD Code / Title 51A / Chapter 2 / Section 51A-2-23
Review of removal order by commission
Status: in_force

The commission shall approve or disapprove any removal order requested by the director pursuant to § 51A-2-22 . Any proceeding held pursuant to this section shall conform with the provisions of chapter 1-26 governing contested cases.

Source: SL 1981, ch 346, § 12; SL 1988, ch 377, § 39; SDCL, § 51-16-25.1.
S.D. Codified Laws § 51A-2-31 — SD Code / Title 51A / Chapter 2 / Section 51A-2-31
Copies of official records and papers in office of division--Evidentiary value--Fee for certified copy
Status: in_force

Copies of all official records and papers in the office of the Division of Banking, certified by the director and authenticated by the official seal, shall be received in evidence in all courts of this state with like force as the originals thereof.

Whenever any certified copy of any record or paper filed in the office of the division is furnished by it, it shall charge and collect a fee of not more than fifty cents per page. The amount of the fee shall be set to reflect actual costs. All such fees shall be paid into the state treasury to the credit of the banking special revenue fund.

Source: SDC 1939, § 6.0218; SL 1941, ch 14, § 2; SDCL, §§ 51-2-30, 51-2-31; SL 1969, ch 11, § 2.20; SL 1981, ch 346, § 15; SL 1988, ch 377, § 47; SDCL, § 51-16-30.
S.D. Codified Laws § 51A-17-121 — SD Code / Title 51A / Chapter 17 / Section 51A-17-121
Deposit of moneys--Banking special revenue fund
Status: in_force

Any money coming into the custody of the division pursuant to this chapter shall be deposited with the state treasurer. The state treasurer shall credit the money to the banking special revenue fund. Any expenditure of money out of the fund may only be made by appropriation by the Legislature through either the General Appropriation Act or a special appropriation bill. The director shall approve vouchers and the state auditor shall draw warrants to pay expenditures authorized by this chapter.

Source: SL 2024, ch 196, § 70.
S.D. Codified Laws § 51A-3-10 — SD Code / Title 51A / Chapter 3 / Section 51A-3-10
Hearing on application
Status: in_force

Within ninety days following an applicant's request for hearing or the commission's order granting a motion to intervene and request for hearing filed in accordance with § 51A-2-16 , the commission shall conduct a hearing on the application. The commission shall consider the evidence presented at the hearing and the director's findings and other pertinent information submitted by the director in accordance with § 51A-3-9 . The commission shall, within forty-five days from the date of the hearing, prepare and file in appropriate written form, findings of fact and conclusions of law which shall become a permanent part of the record relating to the pending application.

Source: SDCL § 51-17-15 as added by SL 1972, ch 253; SL 1988, ch 377, § 66; SDCL § 51-17-15.1; SL 2008, ch 252, § 13.
S.D. Codified Laws § 51A-15-8 — SD Code / Title 51A / Chapter 15 / Section 51A-15-8
Authority of director to take possession of bank in voluntary liquidation
Status: in_force

Where a bank has commenced voluntary liquidation and the director finds that the assets will be insufficient for the full discharge of all obligations or that completion of the liquidation has been unduly delayed, he may take possession and complete the liquidation in the manner provided in this chapter for involuntary liquidations.

Source: SL 1969, ch 11, § 13.3; SDCL, § 51-27-8.
S.D. Codified Laws § 51A-10-6 — SD Code / Title 51A / Chapter 10 / Section 51A-10-6
Statement of account between bank and depositor--Limitation on depositor's recourse after statement rendered
Status: in_force

When a statement of account has been rendered by a bank to a depositor accompanied by vouchers, if any, which are the basis for debit entries in such account, or the depositor's passbook has been written up by the bank showing the condition of the depositor's account and delivered to such depositor with like accompaniment of vouchers, if any, such account shall, after a period of six years from the date of its rendition, in the event no objection thereto has been theretofore made by the depositor, be deemed finally adjusted and settled and its correctness conclusively presumed and such depositor shall thereafter be barred from questioning the incorrectness of such account for any cause.

Source: SL 1963, ch 28, § 1; SDCL, § 51-10-19; SL 1969, ch 11, § 8.7; SL 1981, ch 346, § 47; SDCL, § 51-22-8.
S.D. Codified Laws § 51A-10-9 — SD Code / Title 51A / Chapter 10 / Section 51A-10-9
Preferential deposits
Status: in_force

No bank may give preference to any depositor or creditor by pledging the assets of the bank as collateral security except as provided in § 51A-4-13 and as follows:

(1) The bank may deposit with the treasurer of the United States so much of its assets as may be necessary to qualify as a depository for federal funds and bankruptcy court funds;

(2) A bank, in order to qualify as a depository of funds deposited by the state, any political subdivision thereof, including counties, municipalities, townships, and school districts, or by any officer, commission, board, bureau, or agency of the state or political subdivision or any tribal government, shall segregate as security, investment securities as provided in §§ 51A-4-25 and 51A-4-26 , or irrevocable standby letters of credit, or a surety bond, in accordance with § 4-6A-3 , a sum equal to one hundred percent of the amount deposited in excess of the amount insured by the Federal Deposit Insurance Corporation;

(3) A bank may pledge securities to guarantee deposit of out-of-state municipal, school district, county, or state funds in excess of the amount insured by the federal deposit insurance corporation;

(4) The public deposits preferred by this section are hereby granted a paramount, preferred, and perfected first lien on the bank assets so deposited or segregated or pledged.

Source: SDC 1939, § 6.0418; SL 1941, ch 17; SL 1957, ch 13; SL 1963, ch 25; SDCL §§ 51-10-15 to 51-10-17; SL 1969, ch 11, § 8.10; SL 1974, ch 39, § 16; SL 1982, ch 334, § 4; SL 1986, ch 44, § 14; SL 1987, ch 45, § 3; SDCL § 51-22-12; SL 1991, ch 390, § 7; SL 1992, ch 335; SL 1997, ch 273, § 1; SL 2002, ch 221, § 1.
S.D. Codified Laws § 51A-11-5 — SD Code / Title 51A / Chapter 11 / Section 51A-11-5
Minor's lease of safe deposit
Status: in_force

A bank may lease a safe deposit box to and in connection therewith deal with a minor with the same effect as if leasing to and dealing with a person of full legal capacity.

Source: SL 1969, ch 11, § 9.5; SDCL, § 51-23-5.
S.D. Codified Laws § 51A-6A-1 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-1
Definitions
Status: in_force

Terms used in this chapter mean:

(1) "Articles," in the case of a corporation, articles of incorporation; in the case of a limited liability company, articles of organization;

(2) "Board member," in the case of a corporation, a director; in the case of a limited liability company, a member of the board of managers if manager-managed or board of members if member-managed;

(3) "Client," an individual, corporation, association, or other legal entity receiving or benefitting from fiduciary services provided by a trust company or bank;

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

(5) "Control," the power, directly or indirectly, to direct the management or policies of a trust company or to vote twenty-five percent or more of any class of voting shares of a trust company;

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

(7) "Fiduciary for hire," acting as an administrator, conservator, custodian, executor, guardian, personal representative, or trustee, for any person, trust, or estate for compensation or gain or in anticipation of compensation or gain;

(8) "Financial institution," any bank, national banking association, savings and loan association, or savings bank which has its principal place of business in this state but which does not have trust powers, or which has trust powers, but does not exercise those trust powers;

(9) "Governing board," in the case of a corporation, the board of directors; in the case of a limited liability company, the board of managers if manager-managed or board of members if member-managed;

(10) "Out-of-state trust institution," a nondepository corporation, limited liability company, or other similar entity chartered or licensed by the banking regulatory agency of a state, territory, or district, other than South Dakota, to engage in the trust company business in that state, territory, or district under the primary supervision of such regulator;

(11) "Owner," in the case of a corporation, a common stockholder; in the case of a limited liability company, a person who owns ownership units;

(12) "Person," an individual or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, or any other form of an entity;

(12A) "Public trust company," a trust company that engages in trust company business with the general public by advertising, solicitation, or other means, or a trust company that engages in trust company business but does not fall within the definition of a private trust company established by the commission through rules promulgated pursuant to chapter 1-26 . The commission shall consider the size, number of clients served and the family and other relationships among the clients served, complexity, and related safety and soundness issues as it establishes in rule a definition for the term private trust company;

(13) "Trust company," a nondepository trust company incorporated or organized under the laws of this state engaged in the trust company business;

(14) "Trust company business," engaging in, or representing or offering to engage in, the business of acting as a fiduciary for hire, except that no accountant, attorney, credit union, insurance broker, insurance company, investment advisor, real estate broker or sales agent, savings and loan association, savings bank, securities broker or dealer, real estate title insurance company, or real estate escrow company may be deemed to be engaged in a trust company business with respect to fiduciary services customarily performed by them for compensation as a traditional incident to their regular business activities. Trust company business as defined in this chapter does not constitute banking as defined in subdivision 51A-1-2(4);

(15) "Trust service office," any office, agency, or other place of business at which the powers granted to trust companies are exercised either by a trust company other than the place of business specified in a trust company's certificate of authority or within this state by an out-of-state trust institution.

Source: SL 1995, ch 268, § 1; SL 2005, ch 260, §§ 12, 13; SL 2010, ch 232, §§ 16, 17; SL 2013, ch 239, § 7; SL 2015, ch 240, § 1; SL 2016, ch 231, § 1; SL 2017, ch 204, § 1.
S.D. Codified Laws § 51A-6A-40 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-40
Correction of unsafe or unsound condition or operation--Appointment of special assistant--Appeal of appointment
Status: in_force

If the director determines that the business of any trust company is being conducted in an unsafe or unsound manner, the director may appoint a special assistant who shall immediately take charge of the operation of the trust company for the purpose of correcting any unsafe or unsound condition or operation. After appointment, the special assistant shall continue to serve under the direction of the director for a period of time as the director determines is reasonable and necessary or until relieved by order of the commission or of a court of competent jurisdiction. The special assistant's salary, which shall be determined by the director, and expenses shall be borne by the trust company under supervision. After an appointment of a special assistant, a trust company may, within thirty days from the date of the notice of the appointment, appeal in writing to the commission. If a trust company appeals, the commission shall fix a date for a hearing which shall be within thirty days from the date of the appeal. The hearing shall be conducted in accordance with the provisions of chapter 1-26 . The commission shall render an order as to the correctness or incorrectness of the director's decision to take over the conduct of the trust company, and the order of such commission is subject to review under chapter 1-26 .

Source: SL 1995, ch 268, § 38.
S.D. Codified Laws § 51A-15-41 — SD Code / Title 51A / Chapter 15 / Section 51A-15-41
Prorata payment of claims authorized
Status: in_force

If the sum available for any class is insufficient to provide payment in full, such sum shall be distributed to the claimants in the class on a pro rata basis.

Source: SL 1969, ch 11, § 13.21 (3); SL 1988, ch 377, § 183; SDCL, § 51-27-33.
S.D. Codified Laws § 51A-17-122 — SD Code / Title 51A / Chapter 17 / Section 51A-17-122
Sharing of information collected and retained by the director
Status: in_force

The following provisions apply to the sharing of information collected and retained by the director during the administration of this chapter:

(1) The provisions of § 51A-17-55 regarding privacy or confidentiality apply to any information or material provided to the nationwide mortgage licensing system and registry, and any privilege arising under federal or state law, including any rule of a federal or state court, with respect to the information or material, continue to apply to the information or material after the information or material has been disclosed to the nationwide mortgage licensing system and registry. The information and material may be shared with a state or federal regulatory official who has money transmission industry oversight authority without the loss of privilege or the loss of confidentiality protections by federal law or § 51A-17-55 ; and

(2) No information or material that is subject to privilege or confidentiality pursuant to this section is subject to:

(a) Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or an agency of the federal government or the respective state; or

(b) Subpoena or discovery, or admission into evidence, in any private civil action or administrative process, unless with respect to any privilege held by the nationwide mortgage licensing system and registry regarding the information or material is waived, in whole or in part, by the person to whom the information or material pertains.

This section does not apply to the information or material relating to the employment history of, and publicly adjudicated disciplinary and enforcement actions against, money transmitters that is included in the nationwide mortgage licensing system and registry for access by the public.

Source: SL 2024, ch 196, § 71.
S.D. Codified Laws § 51A-6A-63 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-63
Registering investments in name of nominee--Liability of trust company
Status: in_force

Any trust company, when acting in this state as a fiduciary or a co - fiduciary with others, may with the consent of its co - fiduciary or co - fiduciaries, if any, cause any investment held in any such capacity, to be registered and held in the name of a nominee or nominees of the trust company. The trust company is liable for the acts of any nominee with respect to any investment so registered.

Source: SL 1995, ch 268, § 61.
S.D. Codified Laws § 51A-10-10 — SD Code / Title 51A / Chapter 10 / Section 51A-10-10
Substitution or exchange of securities deposited to qualify as depository for funds of governmental subdivisions
Status: in_force

Any bank pledging such securities pursuant to § 51A-10-9 may substitute or exchange, at any time it deems it advisable or desirable and without concurrence of the depositor, or any officers of such depositors, eligible securities of like nature and character for securities pledged, if:

(1) Such securities so substituted or exchanged shall at the time of such substitution or exchange, have a market value of at least equal to the market value of the securities released; and

(2) In the event of such substitution or exchange, the holder or custodian of the securities shall, on the same day, forward by registered or certified mail to the public deposit protection commission and the depository bank, a receipt specifically describing and identifying both the securities so substituted or exchanged and those released and returned to the depository bank.

Source: SDC 1939, § 6.0418 as added by SL 1957, ch 12; SDCL, § 51-10-18; SL 1969, ch 11, § 8.11; SL 1982, ch 28, § 18; SL 1988, ch 377, § 138; SDCL, § 51-22-13.
S.D. Codified Laws § 51A-5-12 — SD Code / Title 51A / Chapter 5 / Section 51A-5-12
Voting of bank shares by cotrustee
Status: in_force

Shares of its own stock held by a bank and one or more persons as trustees may be voted on by such other person or persons, as trustees, in the same manner as if he or they were the sole trustee.

Source: SL 1970, ch 265, § 39; SDCL, § 51-19-6.1.
S.D. Codified Laws § 51A-15-23 — SD Code / Title 51A / Chapter 15 / Section 51A-15-23
Proceedings exempt from open meetings and administrative procedure laws
Status: in_force

Proceedings under chapter 51A-15 are exempt from the provisions of chapters 1-25 and 1-26 .

Source: SL 1982, ch 336, § 6; SDCL, §§ 51-27-15.1, 51-27-40.
S.D. Codified Laws § 51A-5-11 — SD Code / Title 51A / Chapter 5 / Section 51A-5-11
Investment powers of trust company
Status: in_force

A bank exercising trust powers shall have the same investment powers as an individual fiduciary under like circumstances.

Source: SL 1969, ch 11, § 5.5; SL 1970, ch 265, § 38; SDCL, § 51-19-6.
S.D. Codified Laws § 51A-6A-46.1 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-46.1
Suspension, liquidation, order against unsound practice, removal of director or officer, or injunction
Status: in_force

In addition to the powers granted to the director and the commission in §§ 51A-6A-35 to 51A-6A-46 , inclusive, the powers granted to the director and commission pursuant to §§ 51A-15-11 to 51A-15-44 , inclusive, 51A-2-22 , and 51A-2-25 to 51A-2-27 , inclusive, may be utilized by the director and the commission with regard to trust companies. The powers granted by §§ 51A-15-11 to 51A-15-44 , inclusive, 51A-2-22 , and 51A-2-25 to 51A-2-27 , inclusive, may be used by the director and the commission in connection with a trust company as a supplement to or as an independent alternative to the powers granted in §§ 51A-6A-35 to 51A-6A-46 , inclusive.

Source: SL 2004, ch 312, § 4; SL 2010, ch 232, § 22.
S.D. Codified Laws § 51A-11-3 — SD Code / Title 51A / Chapter 11 / Section 51A-11-3
Fiduciary's access to safe deposit
Status: in_force

Where a safe deposit box is made available by a lessor to one or more persons acting as fiduciaries, the lessor may, except as otherwise expressly provided in the lease or the writings pursuant to which such fiduciaries are acting, allow access thereto as follows:

(1) By any one or more of the persons acting as personal representatives;

(2) By any one or more of the persons otherwise acting as fiduciaries when authorized in writing signed by all other persons so acting;

(3) By any agent authorized in writing, signed by all of the persons acting as fiduciaries.

Source: SL 1969, ch 11, § 9.3; SDCL § 51-23-3.
S.D. Codified Laws § 51A-6A-28 — SD Code / Title 51A / Chapter 6A / Section 51A-6A-28
Dividends from undivided profits or surplus
Status: in_force

The governing board of any trust company may declare dividends from undivided profits or surplus, if the trust company is in compliance with the capital requirements of §§ 51A-6A-19 and 51A-6A-19.1 following payment of the dividend and if the director approves any dividend to be paid from surplus.

Source: SL 1995, ch 268, § 26; SL 2019, ch 205, § 5.
S.D. Codified Laws § 51A-10-8 — SD Code / Title 51A / Chapter 10 / Section 51A-10-8
Misdemeanor to certify check where drawer's funds insufficient
Status: in_force

It is a Class 2 misdemeanor for any officer or employee of any bank to certify any check, draft, or order drawn upon such bank unless the person drawing the same has on deposit an amount of money equal to the amount specified therein. Any check, draft, or order so certified by a duly authorized officer of such bank shall be a good and valid obligation of such bank.

Source: SL 1909, ch 222, art 2, § 34; SL 1915, ch 102, art 2, § 38; RC 1919, § 8986; SDC 1939, § 6.0415; SDCL, § 51-10-13; SL 1969, ch 11, § 8.8; SL 1990, ch 158, § 29; SDCL, § 51-22-10.
S.D. Codified Laws § 51A-2-11 — SD Code / Title 51A / Chapter 2 / Section 51A-2-11
Quorum--Replacement of nonparticipating member
Status: in_force

A majority of the voting members of the commission constitutes a quorum for the conduct of all business. At any meeting at which a quorum is not present, whether by reason of the inability of the member to participate or the member's disqualification pursuant to § 51A-2-16 , the Governor or the Governor's designee, temporarily assuming the powers and duties of a member of the commission, shall replace the interested member of the commission. The commission as then composed shall proceed with the matters before it.

Source: SL 1969, ch 11, § 2.11; SL 1970, ch 265, § 6; SL 1988, ch 377, § 25; SDCL § 51-16-11; SL 2008, ch 252, § 5.
S.D. Codified Laws § 51A-2-4 — SD Code / Title 51A / Chapter 2 / Section 51A-2-4
Director of division--Appointment and removal
Status: in_force

The director of the division shall be appointed by the secretary of labor and regulation and may be removed at the pleasure of the secretary.

Source: SL 1973, ch 2, § 45; SL 1973, ch 290, § 3; SL 1980, ch 370, § 21; SL 1988, ch 377, § 18; SDCL § 51-16-2.1; SL 1995, ch 2, § 5; 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-18-9 — SD Code / Title 51A / Chapter 18 / Section 51A-18-9
Transaction fee maximum
Status: in_force

A licensee may not collect charges from a user related to a single virtual currency transaction, whether directly or indirectly, exceeding twenty-five percent of the amount of the transaction.

Source: SL 2026, ch 193, § 9.
S.D. Codified Laws § 51A-2-2 — SD Code / Title 51A / Chapter 2 / Section 51A-2-2
Department and commission as division within Department of Labor and Regulation--Direction and supervision by department--Independent functions retained by division
Status: in_force

The Division of Banking shall be administered under the direction and supervision of the Department of Labor and Regulation and the secretary thereof. The division shall retain the quasi-judicial, quasi-legislative, advisory, and other nonadministrative functions (as defined in § 1-32-1 ) otherwise vested in it and shall exercise those functions independently of the secretary.

Source: SL 1973, ch 2 (Ex. Ord. 73-1), § 43; SL 1973, ch 290, § 2; SL 1988, ch 377, § 14; SDCL § 51-16-1.1; SL 2003, ch 272 (Ex. Ord. 03-1), § 118, eff. Apr. 17, 2003; SL 2011, ch 1 (Ex. Ord. 11-1 ), § 162, eff. Apr. 12, 2011.
S.D. Codified Laws § 51A-2-22 — SD Code / Title 51A / Chapter 2 / Section 51A-2-22
Removal of director, officer, or employee of bank--Grounds for order by director
Status: in_force

The director, may, subject to the approval of the commission, order the removal or prohibition from the banking industry in South Dakota, or both, of any director, officer, or employee of a bank, upon showing that the director, officer or employee has engaged or participated in any unlawful banking activity, any unsafe or unsound practice in which the bank has suffered or will suffer financial loss or other damage, or upon showing that the director, officer, or employee has knowingly caused the bank to be in violation of any part of this title or any rule issued thereunder, or who is determined by the director to have knowingly and willfully violated the terms of any order issued pursuant to § 51A-2-25 or 12 U.S.C. § 1818. Any person so affected by an order of the director or commission has the right to a hearing pursuant to chapter 1-26 .

Source: SL 1909, ch 222, art 2, § 48; SL 1915, ch 102, art 2, § 53; RC 1919, § 9001; SDC 1939, § 6.0205 (8); SDCL § 51-2-23; SL 1969, ch 11, § 2.17 (2); SL 1970, ch 265, § 10; SL 1988, ch 377, § 38; SDCL § 51-16-25; SL 2008, ch 252, § 8.
S.D. Codified Laws § 51A-2-29 — SD Code / Title 51A / Chapter 2 / Section 51A-2-29
Record of fees--Disposition of money collected
Status: in_force

The division shall keep an official record of all fees collected and of all expenses incurred pursuant to this title. All money so collected shall be reported and paid to the state treasurer and deposited in the banking revolving fund.

Source: SL 1909, ch 222, art 1, §§ 2, 6, 18; SL 1911, ch 256, §§ 2, 6, 30; SL 1915, ch 102, art 1, §§ 2, 6, 29; SL 1917, ch 140, §§ 1, 2; RC 1919, §§ 8922, 8945; SL 1921, ch 135; SL 1933, ch 56; SDC 1939, § 6.0217; SL 1941, ch 14, § 1; SDCL, § 51-2-32; SL 1969, ch 11, § 2.19; SL 1978, ch 355, § 3; SL 1981, ch 346, § 14; SL 1986, ch 399, § 1; SL 1988, ch 377, § 45; SDCL, § 51-16-29.
S.D. Codified Laws § 51A-17-103 — SD Code / Title 51A / Chapter 17 / Section 51A-17-103
Letter of credit requirements
Status: in_force

The letter of credit referenced in subdivision 51A-17-102 (4) must:

(1) Be issued by a federally-insured depository financial institution, a foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states, or a foreign bank that is authorized under state law to maintain a branch in a state that bears an eligible rating or whose parent company bears an eligible rating and is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies;

(2) Be irrevocable, unconditional, and indicate that it is not subject to any condition or qualifications outside of the letter of credit;

(3) Not contain reference to any other agreements, documents or entities, or otherwise provide for any security interest in the licensee; and

(4) Contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of one year from the present or each future expiration date, unless the issuer of the letter of credit notifies the director in writing by certified or registered mail or courier mail or other receipted means, at least sixty days prior to any expiration date, that the irrevocable letter of credit will not be extended.

Source: SL 2024, ch 196, § 52.