Source: http://sdlegislature.gov/statutes/DisplayStatute.aspx?Statute=51A-6A&Type=StatuteChapter
Timestamp: 2016-10-25 08:25:52
Document Index: 760386764

Matched Legal Cases: ['§ 7', '§ 1', '§ 1', '§ 51', '§ 5', '§ 5', '§ 38', '§ 3', '§ 51', '§ 51', '§ 51', '§ 1', '§ 11', '§ 4', '§ 51', '§ 4', '§ 21', '§ 1', '§ 5', '§ 25', '§ 6', '§ 51', '§ 51', '§ 51', '§ 51']

Organization of public and private trust companies--Submission and approval of
articles--Required information.
51A-6A-11.2
51A-6A-11.3
Approval of other office space requirements.
Investments pledged to division for security of trust creditors of trust company--Income from investments--Effective date of order requiring pledge increase--Hearing.
Disclosure of confidential information in certain actions.
51A-6A-50.1
Proceedings to legally dissolve charter of acquired, merged, or consolidated trust
51A-6A-56.
Notice to director of agreement with contracting trustee.
"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;
"Out-of-state trust institution," a nondepository corporation, limited liability company, or
that state, territory, or district under the primary supervision of such regulator;
general public by advertising, solicitation, or other means, or a trust company that engages
subdivision 51A-1-2(4);
ch 239, § 7; SL 2015, ch 240, § 1; SL 2016, ch 231, § 1.
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.
51A-6A-7 Organization of public and private trust companies--Submission and approval of articles--R...
51A-6A-7.
Any three or more persons may organize a public trust company and
make and file articles as provided by the laws of this state. Any one or more persons may organize
a private trust company and make and file articles as provided by the laws of this state. No trust
company may be organized or incorporated to engage in business as such until the articles have been
submitted and approved in accordance with § 51A-6A-4. The name selected for the trust company
may not be the name of any other trust company doing business in the state, and the director shall
accept or reject the name. However, the approval of a trust company name by the director may not
supersede any person's rights pursuant to state or federal trademark law. The articles, in addition to
any other information required by law, shall state:
Source: SL 1995, ch 268, § 5; SL 2008, ch 258, § 5; SL 2011, ch 212, § 38; SL 2016, ch 231, § 3.
Hold no less than two quarterly governing board meetings with a majority physically
present in South Dakota each calendar year;
The commission may promulgate rules, pursuant to chapter 1-26, to establish additional
guidelines regarding what constitutes trust administration in South Dakota for purposes of this
51A-6A-11.2 Office space requirements. 51A-6A-11.2.
For purposes of § 51A-6A-11.1, office space in
South Dakota for each public trust company shall:
Have the name, charter, and certificate of authority of the trust company prominently
Have access to premises in or adjacent to the office space sufficient to facilitate onsite
examinations by the division;
To the extent the trust company maintains hard copies of any documents required to be
maintained pursuant to § 51A-6A-30, have a secure fireproof file cabinet that contains all
such hard copies; and
To the extent the trust company maintains any record electronically, have a secure
computer terminal or other secure electronic device that provides access to such records,
including account information, as necessary to facilitate an efficient and effective
For public trust companies chartered in South Dakota prior to July 1, 2016, the division shall
determine full compliance with the provisions of this section at the first regular examination after
51A-6A-11.3 Approval of other office space requirements. 51A-6A-11.3.
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.
SL 2009, ch 252, § 1; SL 2011, ch 212, § 11; SL 2015, ch 240, § 4.
held during each calendar quarter. Unless otherwise provided in the trust company's organizational
documents, the governing board or an authorized committee may conduct, or permit any member
to participate in, a regular or special meeting through the use of any means of communication by
which all members participating may simultaneously hear each other during the meeting. A member
participating in a meeting by this means is considered present in person at the meeting. The
governing board or an auditor selected by them shall make a thorough examination of the books,
records, funds, and securities held by the trust company at each of the quarterly meetings. The result
of the examination shall be recorded in detail. If the governing board selects an auditor, the auditor's
findings shall be reported directly to the governing board. In lieu of the required four quarterly
examinations, the governing board may accept one annual audit by a certified public accountant or
an independent auditor approved by the director.
The provisions of this section do not alter, amend, or change the requirement of a public trust
company to hold no less than two quarterly governing board meetings with a majority physically
present in South Dakota each calendar year pursuant to § 51A-6A-11.1.
51A-6A-19.2 Investments pledged to division for security of trust creditors of trust company--Income f...
Investments pledged to division for security of trust creditors of trust
Before any trust company authorized by this title transacts any such business, the trust company shall
pledge to the division and maintain at all times investments for the security of the trust creditors of
the trust company including as a priority claim costs incurred by the division in a receivership or
liquidation of the trust company in the event it should fail. The amount of the pledge shall be
determined by the director in an amount deemed appropriate to defray such costs, but may not be less
than a market value of one hundred thousand dollars, and may not exceed five hundred thousand
dollars for a private trust company or one million dollars for a public trust company. All investments
pledged to the division shall be held at a depository institution in this state and all costs associated
with pledging and holding such investments are the responsibility of the trust company.
for public funds as provided in §§ 4-5-6, 4-5-6.1, and 4-5-6.2.
Source: SL 2010, ch 232, § 21; SL 2012, ch 233, § 1; SL 2015, ch 240, § 5.
or nonconvertible capital notes or debentures in such amounts pursuant to terms and conditions as
approved by the director. However, the principal amount of capital notes or debentures outstanding
at any time may not exceed an amount equal to one hundred percent of the trust company's paid-in
capital stock or ownership units plus fifty percent of the amount of its unimpaired surplus fund.
Capital notes or debentures that are by their terms expressly subordinated to the prior payment in full
of all liabilities of the trust company are part of the unimpaired capital funds of the trust company.
No trust company, during the time it continues in business,
after deducting losses, to be ascertained by generally accepted accounting principles at the time of
Source: SL 1995, ch 268, § 25; SL 2015, ch 240, § 6.
not less than eighty percent of the known claims against the trust company, a copy of the plan is filed
with the director, and the director approves the plan, the plan is legal, valid, and binding upon all
creditors of the insolvent trust company to the same extent and with the same effect as if all of the
creditors had joined in the execution of the plan.
51A-6A-46.2 Disclosure of confidential information in certain actions. 51A-6A-46.2.
§§ 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.
51A-6A-50.1 Proceedings to legally dissolve charter of acquired, merged, or consolidated trust company...
51A-6A-50.1.
Proceedings to legally dissolve charter of acquired, merged, or consolidated
If a trust company has been acquired, merged, or consolidated with another trust
company or financial institution, or its assets have been purchased and its liabilities assumed by
another trust company or financial institution, in any instance other than an emergency, within thirty
days thereafter, the directors of the trust company shall institute proceedings to legally dissolve its
charter in the same manner as provided for voluntary liquidation in chapter 51A-15. However, no
notice need be given pursuant to § 51A-15-3.
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.