reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-7 - Applications--Fee.

51A-3-7. Applications--Fee.
Any application filed pursuant to §51A-2-16 shall be delivered to the director and contain any information the director may require. The application shall be accompanied by an application fee in an amount set by the commission. In addition to the application fee, the applicant shall pay any costs associated with the public notice required in §51A-2-16. The director may assess an applicant for actual costs of processing the application if the actual costs exceed the application fee.
Source:
SDC 1939, §6.0304; SL 1963, ch 23; SDCL, §§51-3-5, 51-3-6; SL 1969, ch 11, §3.11; SL 1970, ch 265, §18; SL 1979, ch 323; SL 1981, ch 346, §22; SL 1988, ch 377, §62; SDCL, §51-17-12; SL 1991, ch 390, §1; SL 2020, ch 204, § 1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-8 - Acceptance of application for charter.

51A-3-8. Acceptance of application for charter.
The director shall notify the incorporators of his acceptance for filing of an application. If the application and accompanying documents required in §51A-3-7 do not conform to the requirements of this title, or the rules of the commission, the director shall return the application calling attention to the defects therein. However, if the director does not act within twenty days of his receipt thereof, the application is considered to have been accepted by him.
Source:
SL 1969, ch 11, §3.13; SL 1988, ch 377, §64; SDCL, §51-17-14.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-9 - Conditions to be considered in ruling on application.

51A-3-9. Conditions to be considered in ruling on application.
In ruling upon any bank application required in §51A-2-16, the director or the commission, as the case may be, shall consider the following conditions:
(1)The financial history and condition of the applicant;
(2)The adequacy of the applicant's financial structure;
(3)The future earning prospects of the applicant;
(4)The general character and fitness of the management and ownership of the applicant;
(5)The applicant's ability to serve the community as described in the application; and
(6)Such other facts and circumstances as in the opinion of the director or commission may be relevant.
In any hearing before the commission on an application, the director shall submit to the commission for its consideration pursuant to §51A-3-10 the director's findings with respect to the above conditions together with all other pertinent information in the director's possession.
Source:
SL 1909, ch 222, art 2, §7; SL 1915, ch 102, art 2, §9; RC 1919, §8955; SDC 1939, §6.0304; SL 1963, ch 23; SDCL §51-3-7; SL 1969, ch 11, §3.14; SL 1972, ch 253; SL 1981, ch 346, §23; SL 1988, ch 377, §65; SDCL §51-17-15; SL 2008, ch 252, §12.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-10 - Hearing on application.

51A-3-10. Hearing on application.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-12 - Endorsement and filing of approved articles--Notice of disapproval.

51A-3-12. Endorsement and filing of approved articles--Notice of disapproval.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-13 - Subscription of shares--Minimum collection--Refund on disapproval of application.

51A-3-13. Subscription of shares--Minimum collection--Refund on disapproval of application.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › 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.

51A-3-14. Call by incorporators for full payment of subscriptions--Issuance of certificate of authority by director--Commencement of business within one year.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-15 - Applications for branch banks and detached drive-in facilities--Applicable provisions.

51A-3-15. Applications for branch banks and detached drive-in facilities--Applicable provisions.
The provisions of §§51A-3-7 to 51A-3-14, inclusive, insofar as they are by their terms applicable, govern applications for branch banks and detached drive-in facilities.
Source:
SL 1969, ch 11, §3.18; SL 1981, ch 346, §24; SL 1988, ch 377, §68; SDCL, §51-17-20.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-16 - Preferred stock, capital notes, and debentures--Director approval of issuance--Terms of issue--Director approval of retirement or payment.

51A-3-16. Preferred stock, capital notes, and debentures--Director approval of issuance--Terms of issue--Director approval of retirement or payment.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-17 - Preferred stock, capital notes, and debentures outstanding--Restrictions on dividends.

51A-3-17. Preferred stock, capital notes, and debentures outstanding--Restrictions on dividends.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-17.1 - Dividends--Definition.

51A-3-17.1. Dividends--Definition.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-18 - Dividends--Restrictions and requirements for declaration.

51A-3-18. Dividends--Restrictions and requirements for declaration.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-19 - Approval of director required for unusually large dividends.

51A-3-19. Approval of director required for unusually large dividends.
The approval of the director is required before a dividend is declared if the total of all dividends, including the proposed dividend, declared by the directors of a bank in any calendar year exceeds the total of its net profits of that year to date combined with its retained net profits of the preceding two years, less any required transfers to surplus or a fund for the retirement of any preferred stock.
Source:
SL 1969, ch 11, §3.10; SDCL, §§51-17-11, 51-17-20.4; SL 1991, ch 390, §2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-20 - Recovery of dividends paid when capital impaired.

51A-3-20. Recovery of dividends paid when capital impaired.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-21 - Net profits defined.

51A-3-21. Net profits defined.
Net profits shall be equal to the net income or loss as reported by a bank in its reports of condition and income. In computing its net profits under this section, a bank may not add its provision for loan and lease losses to, nor deduct net charge offs from, its reported net income.
Source:
SDCL, §51-15-1(9); SL 1988, ch 377, §1; SDCL, §51-17-20.6; SL 1991, ch 390, §3.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-22 - Amendment of articles of incorporation--Changes requiring approval of director--Filing of amendments.

51A-3-22. Amendment of articles of incorporation--Changes requiring approval of director--Filing of amendments.
A bank may amend its articles of incorporation in the manner provided under §§47-1A-101 to 47-1A-863.3, inclusive, §§47-1A-1001 to 47-1A-1021, inclusive, and §§47-1A-1201 to 47-1A-1202.6, inclusive, upon amendment certified by its president, except that prior approval of the director shall be required for a bank to: change its name or location; acquire or abandon trust powers; change the number or par value of its shares of stock; change the amount of capital; or, extend its corporate existence. Such approval must be based upon a finding that the security of existing creditors will not be impaired by the proposed action. All such amendments shall be filed in the same manner as provided for original articles of incorporation.
Source:
SL 1909, ch 222, art 2, §15; SL 1915, ch 102, art 2, §17; RC 1919, §8963; SDC 1939, §6.0307; SDCL, §§51-3-9, 51-4-6; SL 1969, ch 11, §3.19; SDCL, §51-17-21; SL 2005, ch 202, §20.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-23 - Extension of charter.

51A-3-23. Extension of charter.
Within one year prior to the expiration of the period for which it was incorporated a bank may, with the approval of at least a majority of the capital stock of such corporation, extend its corporate existence for an additional period, not to exceed twenty years, by amending its articles of incorporation as provided in §51A-3-22.
Source:
SL 1903, ch 80, §§1 to 3; RC 1919, §8964; SDC 1939, §6.0308; SL 1941, ch 16; SDCL, §51-3-10; SL 1969, ch 11, §3.20; SL 1972, ch 254; SL 1980, ch 332, §1; SDCL, §51-17-22.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-24 - Reporting transfers of stock.

51A-3-24. Reporting transfers of stock.
All transfers of shares of bank stock in excess of five percent of the voting stock of a bank or of its parent holding company shall be immediately reported to the director. The transfer of such shares is not valid against a bank until recorded in the transfer books, but none may be recorded while the bank is subject to an order of the director to make good an impairment of capital. Any transfer shall be reported to the director if, after the transfer, the acquiring shareholder owns, directly or indirectly, twenty-five percent or more of the common stock of a bank or bank holding company unless notice of such fact had previously been reported to the director.
Source:
SL 1909, ch 222, art 2, §43; SL 1911, ch 255, §22; SL 1915, ch 102, art 2, §47; RC 1919, §§8995, 9052; SDC 1939, §6.0310; SDCL, §51-4-16; SL 1969, ch 11, §3.21; SL 1981, ch 346, §25; SL 1988, ch 377, §69; SDCL, §51-17-23.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-25 - Change in control of bank.

51A-3-25. Change in control of bank.
For the purposes of application approval under §51A-2-16, a change of control created by the acquisition of shares in satisfaction of a debt previously contracted in good faith or through testate or intestate succession, bona fide gift, or trust distribution does not require an application for change in control. The acquirer shall advise the director within thirty days after the acquisition and provide such information as the director may request.
For the purposes of this section, the term, control, means the power, directly or indirectly, to direct the management or policies of a bank or to vote twenty-five percent or more of any class of voting securities of a bank.
Source:
SL 1988, ch 371, §70; SL 1989, ch 411, §1; SDCL §51-17-23.1; SL 1991, ch 390, §4; SL 2008, ch 252, §16; SL 2012, ch 252, §11.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-26 - Lien on shares--Enforcement--Marking of certificates.

51A-3-26. Lien on shares--Enforcement--Marking of certificates.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-27 - Purchase or purchase money loans on security of own stock prohibited--Exception.

51A-3-27. Purchase or purchase money loans on security of own stock prohibited--Exception.
No bank may make any purchase money loans or discounts on the security of the shares of its own capital stock, or on the shares of its parent holding company, nor be the purchaser or holder of any such shares unless such security or purchase is necessary to prevent loss upon a debt previously contracted in good faith. Stock so purchased or acquired shall, within six months of the time of its purchase, be sold or disposed of at public or private sale, and if not disposed of within that time, may no longer be included in the assets of such bank. However, a bank may purchase for fair value fractional shares of a bank's common stock from the holders thereof pursuant to the provisions set forth in Title 47 for the purpose of canceling the fractional shares if the bank meets all capital requirements after cancellation of the fractional shares.
Source:
SDC 1939, §6.0430; SL 1964, ch 12; SDCL, §51-11-16; SL 1969, ch 11, §4.15; SDCL, §51-18-16; SL 1988, ch 377, §92; SDCL, §51-17-24.1; SL 1997, ch 270, §1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-28 - Credit of dividends, interest, or profits on indebtedness--Foreclosure of lien.

51A-3-28. Credit of dividends, interest, or profits on indebtedness--Foreclosure of lien.
While any indebtedness under §51A-3-26 exists, all dividends, interest, or profits on such stock, if any, shall be credited by the bank on such indebtedness in the event the bank has exercised its rights to acquire or purchase the stock. The lien hereby created in favor of the bank may be foreclosed by such bank in the manner provided by law for the foreclosure of liens.
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, §§51-4-18, 51-4-19; SL 1969, ch 11, §3.22; SL 1970, ch 265, §23; SL 1988, ch 377, §72; SDCL, §51-17-25.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-30 - Adoption and approval of bylaws.

51A-3-30. Adoption and approval of bylaws.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-31 - Indemnification of officers, directors, or employees.

51A-3-31. Indemnification of officers, directors, or employees.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-32 - Board of directors--Number of members--Citizenship requirements--Election.

51A-3-32. Board of directors--Number of members--Citizenship requirements--Election.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-33 - Removal of directors--Vote required.

51A-3-33. Removal of directors--Vote required.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-34 - Board of directors--Meetings.

51A-3-34. Board of directors--Meetings.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-35 - Election of officers--Terms--Vacancies.

51A-3-35. Election of officers--Terms--Vacancies.
The officers of every bank shall be elected by the board of directors at the board meeting held in January of each year. The president or chief executive officer shall be appointed by the elected board members to the board of directors. The officers shall hold office for one year and until their successors are elected and qualified, subject to removal by the board at any time. Vacancies may be filled by appointment of successors by the board of directors at any regular or special meeting, to hold office until the next regular election and until successors qualify.
Source:
SDC 1939, §6.0317; SL 1963, ch 24; SDCL, §51-3-18; SL 1969, ch 11, §3.28; SL 1988, ch 377, §77; SDCL, §51-17-34; SL 1996, ch 279, §2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-36 - Names of officers and information forwarded to director--Vacancy on refusal to confirm.

51A-3-36. Names of officers and information forwarded to director--Vacancy on refusal to confirm.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-37 - Bonds of officers and employees.

51A-3-37. Bonds of officers and employees.
The directors of a bank shall direct and require good and sufficient fidelity bonds on all active officers and employees, whether or not they draw salaries or compensation, which bonds shall provide for indemnity to such bank on account of any losses sustained by it as a result of any dishonest, fraudulent, or criminal act or omission committed or omitted by them acting independently or in collusion or combination with any person or persons. Such bonds may be in individual, schedule, or blanket bond form, and the premiums therefor may be paid by the bank.
Source:
SL 1909, ch 222, art 2, §9; SL 1915, ch 102, art 2, §11; RC 1919, §8957; SL 1925, ch 96; SL 1933 (SS), ch 4; SL 1935, ch 58; SDC 1939, §6.0318; SDCL, §51-3-20; SL 1969, ch 11, §3.29; SDCL, §51-17-36.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-38 - Insurance protection.

51A-3-38. Insurance protection.
The directors of a bank shall also direct and require suitable insurance protection to the bank against robbery, burglary, theft and other insurable hazards to which the bank may be exposed in the operation of its business on the premises or elsewhere.
Source:
SL 1969, ch 11, §3.29; SDCL, §51-17-37.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations › Section 51A-3-39 - Amount of bonds and insurance prescribed by bank directors--Approval by director of division.

51A-3-39. Amount of bonds and insurance prescribed by bank directors--Approval by director of division.
The directors of a bank shall be responsible for prescribing at least once in each year the amount or penal sum of such bonds or policies and the sureties or underwriters thereon, after giving due and careful consideration to all known elements and factors constituting such risk or hazard. Such action shall be recorded in the minutes of the board of directors and thereafter be reported to the director and be subject to his approval.
Source:
SL 1969, ch 11, §3.29; SDCL, §51-17-38.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-1 - Miscellaneous banking powers.

51A-4-1. Miscellaneous banking powers.
In addition to powers otherwise conferred by the laws of this state, a bank may exercise all such powers as are usual in carrying on the business of banking, including, the buying, discounting, and negotiating promissory notes, bonds, drafts, bills of exchange, foreign and domestic, and other evidences of debt; by receiving commercial and saving deposits under such rules as the commission may establish; by buying and selling coin and bullion, and by buying and selling exchange, foreign and domestic; issuing letters of credit, by loaning money on personal and real security, and by renting receptacles for safekeeping on its premises.
Source:
SL 1891, ch 27, §4; RCivC 1903, §850; SL 1909, ch 222, art 2, §4; SL 1911, ch 255, §6; SL 1915, ch 102, art 2, §5; RC 1919, §§8952, 9037; SDC 1939, §6.0401 (4), (5); SDCL, §§51-6-7, 51-6-11; SL 1969, ch 11, §4.1; SL 1988, ch 377, §79; SDCL, §51-18-1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-1.1 - Banking with industrial hemp or marijuana licensees and associated persons authorized.

51A-4-1.1. Banking with industrial hemp or marijuana licensees and associated persons authorized.
A bank may, directly or through subsidiaries, carry on the business of banking, pursuant to § 51A-4-1, with any person licensed in this state to engage in the business of industrial hemp or marijuana, or with any person engaging in legal business dealings with such licensee.
Source:
SL 2021, ch 202, § 1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-2 - Purchase and sale of securities on order of customer--Contract with securities brokerage services allowed.

51A-4-2. Purchase and sale of securities on order of customer--Contract with securities brokerage services allowed.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-3 - Operation of travel agency.

51A-4-3. Operation of travel agency.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-4 - Insurance business authorized.

51A-4-4. Insurance business authorized.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-5 - Certificate of authority required to engage in banking business--Misdemeanor.

51A-4-5. Certificate of authority required to engage in banking business--Misdemeanor.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-6 - Order to cease and desist for violation--Right to appeal.

51A-4-6. Order to cease and desist for violation--Right to appeal.
The director may, after determining that any person, partnership or corporation is in violation of §51A-4-5, issue an order to cease and desist from all activities determined to be the business of banking. Any right to appeal such an order is subject to the provisions of chapter 1-26 governing contested cases.
Source:
SL 1988, ch 377, §81; SDCL, §51-18-2.1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-7 - Arrest and prosecution for violation.

51A-4-7. Arrest and prosecution for violation.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-8 - Deposit insurance required--Federal reserve system membership authorized.

51A-4-8. Deposit insurance required--Federal reserve system membership authorized.
Any bank authorized to engage in business under this title may obtain insurance of its deposits by the United States or any agency thereof. The commission may, by rule promulgated pursuant to chapter 1-26, establish requirements for insurance coverage of deposits. Any bank is authorized to acquire and hold membership in the federal reserve system. Such bank shall nevertheless be subject to the supervision and examination required by the laws of this state relating to banks.
Source:
SL 1915, ch 102, art 2, §36; RC 1919, §8983; SL 1919, ch 125; SL 1933 (SS), ch 1, §1; SL 1935, ch 61, §1; SDC 1939, §§6.0405, 6.0408; SDCL, §§51-6-12, 51-6-13; SL 1969, ch 11, §4.3; SL 1988, ch 377, §83; SDCL, §51-18-3.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-9 - Real property authorized to be held by bank--Maximum book value of premises.

51A-4-9. Real property authorized to be held by bank--Maximum book value of premises.
Except as provided in §§51A-4-10, a bank may lease, purchase, hold, and convey in its own name, or through investment in a corporation organized solely to lease such property to it, only the following real property:
(1)That which it occupies or intends to occupy for the transaction of its business or which it partly so occupies and partly rents or leases to others;
(2)That which is used for accommodation in the transaction of the bank's business, including parking, storage and preservation of records, and data processing facilities; or
(3)That which is used for housing or recreation accommodations for attracting and retaining employees.
All such accommodations shall be of a reasonable nature.
The book value of a bank's premises may not exceed in the aggregate one hundred percent of the bank's capital stock and surplus. However, the director may authorize a larger investment, upon formal application and after an investigation, if the sound conduct of banking will not be adversely affected by the larger investment. For the purposes of this section, book value includes those amounts which are to be reported as premises and fixed assets according to the instructions for consolidated reports of condition filed with the division.
Source:
SDC 1939, §§6.0410 (1), 6.0430; SL 1964, ch 12; SDCL §§51-11-17, 51-11-18; SL 1969, ch 11, §4.4; SL 1981, ch 346, §29; SL 1986, ch 400, §13; SL 1988, ch 377, §84; SDCL §51-18-4; SL 1991, ch 390, §5; SL 1999, ch 235, §1; SL 2012, ch 252, §13; SL 2020, ch 4, § 27.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-10 - Property authorized to be purchased to satisfy debts--Limitation on period of retention.

51A-4-10. Property authorized to be purchased to satisfy debts--Limitation on period of retention.
A bank may, by itself or through a subsidiary, acquire, hold and convey property of any kind to satisfy debts previously contracted in good faith and in the ordinary course of business at a purchase price which is no greater than the aggregate of the debt, interest and other costs, provided that such property shall be held subject to the following limitations:
(1)Personal property held by the bank shall be sold within six months or such additional period not exceeding one year as the director may allow;
(2)Real property shall be sold within five years, unless an extension be granted by the director.
Source:
SL 1891, ch 27, §5; RCivC 1903, §851; SL 1909, ch 222, art 2, §16; SL 1915, ch 102, art 2, §18; RC 1919, §8965; SDC 1939, §6.0410 (2), (3); SDCL, §51-11-19; SL 1969, ch 11, §4.5; SL 1970, ch 265, §27; SL 1981, ch 346, §30; SL 1988, ch 377, §85; SDCL, §51-18-5.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-12 - Checks settled at par--Payment from reserve deposits.

51A-4-12. Checks settled at par--Payment from reserve deposits.
Except as to any check sent to it as a special collection item, no bank shall settle any check drawn on it otherwise than at par. Any check bearing an out-of-town endorsement shall be, at the option of the drawee bank, payable by draft drawn on the reserve deposits of the drawee bank when any such check is presented by or through any bank, banker, trust company, federal reserve bank, post office, express company, or collective agency, or agents of any of the foregoing.
Source:
SL 1920 (SS), ch 31, §1; SDC 1939, §6.0421; SL 1947, ch 26; SDCL, §51-6-8; SL 1968, ch 7, §1; SL 1969, ch 11, §4.8; SDCL, §51-18-8.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-13 - Borrowing money by bank--Pledge of assets.

51A-4-13. Borrowing money by bank--Pledge of assets.
A bank may borrow money and pledge assets for terms, and upon conditions, established by the Banking Commission in rules promulgated pursuant to chapter 1-26.
Source:
SDC 1939, §6.0423; SDCL, §51-6-14; SL 1969, ch 11, §4.9; SL 1981, ch 346, §31; SDCL, §51A-4-13; SL 1999, ch 236, §1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-14 - "Bills payable" issued for money borrowed by bank--Record of amount borrowed.

51A-4-14."Bills payable" issued for money borrowed by bank--Record of amount borrowed.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-15 - Rediscounting of negotiable paper--Limitation on pledge of assets as security.

51A-4-15. Rediscounting of negotiable paper--Limitation on pledge of assets as security.
A bank may rediscount in good faith and endorse any of its negotiable paper. However, no bank may pledge any of its assets as collateral security for the payment thereof, except as required by rules of the federal reserve bank. The director may require such bank to repay any such rediscounts.
Source:
SL 1909, ch 222, art 2, §33; SL 1915, ch 102, art 2, §37; SL 1918 (SS), ch 29; RC 1919, §8984; SL 1919, ch 124; SL 1925, ch 92; SL 1927, ch 53; SL 1933, ch 50; SDC 1939, §6.0425; SDCL §51-6-17; SL 1969, ch 11, §4.10; SDCL §51-18-11; SL 2012, ch 252, §14.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-16 - Sale, transfer, or assignment of loan participations.

51A-4-16. Sale, transfer, or assignment of loan participations.
A bank may sell, transfer or assign participations in mortgage loans and other loans made by a bank to agencies of the state or federal government, to public instrumentalities, or to financial institutions of any type including, but not limited to, banks, savings and loan associations, finance companies, bank holding companies, insurance companies and other financial institutions, whether such institution is incorporated or chartered in the state of South Dakota or in another state.
Source:
SL 1981, ch 346, §39; SDCL, §§51-18-11.1, 51-18-29.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-17 - Sale of assets of bank.

51A-4-17. Sale of assets of bank.
A bank may sell any asset in the ordinary course of business, or, with the approval of the director in any other circumstance, but the sale of all or substantially all of the assets of a bank or a department thereof is considered a voluntary liquidation and governed by chapters 51A-14 and 51A-15.
Source:
SL 1969, ch 11, §4.11; SL 1970, ch 265, §29; SL 1981, ch 346, §32; SL 1988, ch 377, §88; SDCL, §51-18-12.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-18 - Grounds and procedure for nonobservance of banking hours--Extension of hours.

51A-4-18. Grounds and procedure for nonobservance of banking hours--Extension of hours.
In the event of a legal holiday, power failure, fire, act of God, riot, strike, robbery or attempted robbery, epidemic, interruption of communication facilities, or for such other reason as the director may determine to be good cause, or in the event of the declaration of the existence of an emergency by the Governor or such other person lawfully exercising the power and duties of the office of Governor, a bank, in the reasonable and proper exercise of its discretion, may determine not to open its main office or any branch on any business or banking day, or, if having opened, to close such main office or any branch during the continuation of any such occurrence or emergency.
Except for legal holidays, the bank shall, as soon as practicable, notify the director of the nonopening or closing period. In no case may the bank be required to comply with any other provision of law regarding the closing or reopening of banks or financial institutions. Any act, which could not be executed because of the closing, may be performed on the next succeeding business day that the main office or branch is reopened for business. Any other provision or rule of law notwithstanding, no liability or loss of rights of any kind on the part of any person, firm, or corporation, or of such bank, may accrue or result by virtue of the nonopening or closing.
In the event of an emergency or natural disaster affecting a bank's community, a bank may, without notice or advance permission from the director, temporarily extend its banking hours for the public convenience during the term of the emergency and disaster. In the event of an emergency or natural disaster, the director may waive any provision under this Title to provide for the continued access to banking facilities by the citizens of this state.
The right of a bank not to open or close under this section and the protections afforded with respect thereto are in addition to and not in lieu of any rights or protections granted under §57A-4-108.
Source:
SL 1969, ch 11, §4.12; SL 1981, ch 346, §33; SL 1986, ch 27, §53; SL 1988, ch 377, §89; SDCL §51-18-13; SL 2008, ch 252, §17.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-19 - Change in banking hours--Notice to division.

51A-4-19. Change in banking hours--Notice to division.
If any bank adopts new hours of operation for its daily business to customers, it shall inform the division prior to the effective date of the change.
Source:
SL 1969, ch 11, §4.13; SL 1981, ch 346, §34; SL 1988, ch 377, §90; SDCL, §51-18-14.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-20 - Restriction on use of bank money to purchase other bank stock--Community investments authorized--Limitation on investment.

51A-4-20. Restriction on use of bank money to purchase other bank stock--Community investments authorized--Limitation on investment.
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.