reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 09 - Bank Service Corporations › Section 51A-9-1 - "Bank service corporation" and "bank services" defined.

51A-9-1."Bank service corporation" and "bank services" defined.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 09 - Bank Service Corporations › Section 51A-9-2 - Investment in bank service corporation.

51A-9-2. Investment in bank service corporation.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 09 - Bank Service Corporations › Section 51A-9-3 - Authority of bank service corporation.

51A-9-3. Authority of bank service corporation.
No bank service corporation may engage in any activity other than the performance of bank services for banks.
Source:
SL 1963, ch 29, §3; SDCL, §51-9-2; SL 1969, ch 11, §7.3; SDCL, §51-21-3.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 09 - Bank Service Corporations › Section 51A-9-4 - Ownership of bank or bank holding company stock prohibited.

51A-9-4. Ownership of bank or bank holding company stock prohibited.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 09 - Bank Service Corporations › Section 51A-9-5 - Examination of bank services.

51A-9-5. Examination of bank services.
Any bank services performed by a bank service corporation for any bank, whether on or off the premises of such bank, shall, as to such bank, be subject to regulation and examination to the same extent as if such bank services were performed by the bank itself on the premises of such bank.
Source:
SL 1963, ch 29, §6; SDCL, §51-9-4; SL 1969, ch 11, §7.4; SDCL, §51-21-4.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 10 - Bank Deposits › Section 51A-10-1 - "Deposit" or "deposits" defined.

51A-10-1."Deposit" or "deposits" defined.
The word "deposit" or "deposits" shall be construed to be the unpaid balance of money or its equivalent, including "deposits subject to check"; "dividends unpaid"; "savings deposits"; "special deposits"; "trust deposits"; "certified checks" and "cashier's checks outstanding"; "demand certificates of deposit"; "time certificates of deposit"; "collections made but not remitted"; and "due to other banks," on which the bank is primarily liable except "overdrafts on correspondents"; or other terms of like import. If any bank has borrowed money on its bills payable, pursuant to a contract which grants permission to the loaning bank to appropriate and to apply any credit balance which the books of the loaning bank show to be due or owing to the borrowing bank, to be credited on such bills payable without regard to the date of maturity thereof, the money received on such bills payable by such borrowing banks shall be deemed "deposits."
Source:
SL 1915, ch 102, art 2, §30; RC 1919, §8977; SDC 1939, §6.0412; SDCL, §51-10-1; SL 1969, ch 11, §8.1; SL 1970, ch 265, §42; SL 1988, ch 377, §134; SDCL, §51-22-1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 10 - Bank Deposits › Section 51A-10-2 - Minors' accounts.

51A-10-2. Minors' accounts.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 10 - Bank Deposits › Section 51A-10-3 - Deposits in name of two or more persons.

51A-10-3. Deposits in name of two or more persons.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 10 - Bank Deposits › Section 51A-10-4 - Deposits in trust for another.

51A-10-4. Deposits in trust for another.
Whenever any deposit is made in a bank by a person which in form is in trust for another, but no other or further notice of the existence and terms of a legal and valid trust is given in writing to the bank, in the event of the death of the trustee, the deposit or any part thereof, may be paid to the person for whom the deposit was made, together with the dividends or interest thereon, whether or not such person is a minor.
Source:
SL 1969, ch 11, §8.5; SDCL, §51-22-6.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 10 - Bank Deposits › Section 51A-10-5 - Tax liability on payments to survivors of deposits in name of two or more persons or in trust for another.

51A-10-5. Tax liability on payments to survivors of deposits in name of two or more persons or in trust for another.
No bank so paying any such survivor or survivors under §§51A-10-3 and 51A-10-4 is liable for any estate, inheritance, or succession taxes due this state.
Source:
SL 1969, ch 11, §8.6; SL 1970, ch 265, §44; SDCL, §51-22-7; SL 1992, ch 88, §13; SL 1993, ch 94, §7.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 10 - Bank Deposits › Section 51A-10-6 - Statement of account between bank and depositor--Limitation on depositor's recourse after statement rendered.

51A-10-6. Statement of account between bank and depositor--Limitation on depositor's recourse after statement rendered.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 10 - Bank Deposits › Section 51A-10-7 - Duty of depositor to examine statement of account and vouchers.

51A-10-7. Duty of depositor to examine statement of account and vouchers.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 10 - Bank Deposits › Section 51A-10-8 - Misdemeanor to certify check where drawer's funds insufficient.

51A-10-8. Misdemeanor to certify check where drawer's funds insufficient.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 10 - Bank Deposits › Section 51A-10-9 - Preferential deposits.

51A-10-9. Preferential deposits.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 10 - Bank Deposits › Section 51A-10-10 - Substitution or exchange of securities deposited to qualify as depository for funds of governmental subdivisions.

51A-10-10. Substitution or exchange of securities deposited to qualify as depository for funds of governmental subdivisions.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 10 - Bank Deposits › Section 51A-10-11 - Loans prohibited when reserve deficient.

51A-10-11. Loans prohibited when reserve deficient.
Whenever the reserve of any bank shall fall below the legal amount required, such bank shall not increase its loans or discounts otherwise than by discounting or purchasing bills of exchange payable at sight or on demand.
Source:
SL 1909, ch 222, art 2, §28; SL 1915, ch 102, art 2, §32; RC 1919, §8979; SDC 1939, §6.0427; SDCL, §51-10-8; SL 1969, ch 11, §8.14; SDCL, §51-22-17.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 11 - Safe Deposit And Safekeeping › Section 51A-11-1 - Definition of terms.

51A-11-1. Definition of terms.
Terms used in this chapter, unless the context otherwise plainly requires, shall mean:
(1)"Lessee," a person contracting with the lessor for the use of a safe deposit box;
(2)"Lessor," a bank or branch bank which engages in the business of renting safe deposit facilities;
(3)"Safe deposit box," a box, vault, or other receptacle maintained by a lessor in its vault and the purpose of which is to secure the property of a lessee.
Source:
SL 1969, ch 11, §9.1; SDCL, §51-23-1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 11 - Safe Deposit And Safekeeping › Section 51A-11-2 - Regulation of safe deposit by commission.

51A-11-2. Regulation of safe deposit by commission.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 11 - Safe Deposit And Safekeeping › Section 51A-11-3 - Fiduciary's access to safe deposit.

51A-11-3. Fiduciary's access to safe deposit.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 11 - Safe Deposit And Safekeeping › Section 51A-11-4 - Power of attorney.

51A-11-4. Power of attorney.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 11 - Safe Deposit And Safekeeping › Section 51A-11-5 - Minor's lease of safe deposit.

51A-11-5. Minor's lease of safe deposit.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 11 - Safe Deposit And Safekeeping › Section 51A-11-6 - Joint leaseholds in safe deposit.

51A-11-6. Joint leaseholds in safe deposit.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 11 - Safe Deposit And Safekeeping › Section 51A-11-7 - Death of lessee--Procedures for opening and delivery of contents of safe deposit.

51A-11-7. Death of lessee--Procedures for opening and delivery of contents of safe deposit.
If only one lessee is named in the lease agreement covering a safe deposit box rental and such lessee shall die, the safe deposit box may be opened at any time thereafter and all contents may be delivered, without inventory, to the personal representative or special administrator of a deceased lessee, and without liability to the lessor.
In the alternative, after the lessee's death, the safe deposit box may be opened at any time, in the presence of those persons presenting the key thereto and claiming to be interested in the contents thereof, by two employees of the lessor, one of whom shall be an officer of the lessor. The employees may remove all instruments of a testamentary nature and personally deliver or forward them by registered or certified mail to the probate court having apparent jurisdiction. The employees may deliver life insurance policies contained in the box to the beneficiary named in the policies. Any and all other contents of the box so opened shall be kept and retained by the lessor and shall be delivered only to the parties legally entitled to the same.
If no person presents the key to the safe deposit box within six months after the death of the lessee, the lessor, by two employees, one of whom shall be an officer of said lessor, may open the box by forcible entry and remove the contents and deliver the same to the probate court, subject to the payment of rentals, of expenses, and the repairs.
This section applies if all of the lessees under a joint leasehold agreement are deceased.
Source:
SL 1969, ch 11, §9.7; SL 1970, ch 265, §49; SDCL 51-23-7; SL 2000, ch 229, §18.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 11 - Safe Deposit And Safekeeping › Section 51A-11-7.1 - Death of joint lessee or other having right of access--Notification of lessor.

51A-11-7.1. Death of joint lessee or other having right of access--Notification of lessor.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 11 - Safe Deposit And Safekeeping › Section 51A-11-8 - Corporate lessee.

51A-11-8. Corporate lessee.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 11 - Safe Deposit And Safekeeping › Section 51A-11-9 - Adverse claims to safe deposit.

51A-11-9. Adverse claims to safe deposit.
Adverse claims to the contents of a safe deposit box shall be governed by §51A-1-3, insofar as such section may be applicable to this chapter.
Source:
SL 1969, ch 11, §9.9; SDCL, §51-23-9.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 11 - Safe Deposit And Safekeeping › Section 51A-11-10 - Unpaid rental--Procedures for opening safe deposit and disposition of contents.

51A-11-10. Unpaid rental--Procedures for opening safe deposit and disposition of contents.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-1 - Application to bank loans.

51A-12-1. Application to bank loans.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-2 - Loan or credit limitation.

51A-12-2. Loan or credit limitation.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-2.1 - Application for exception to agricultural loan or credit limitation.

51A-12-2.1. Application for exception to agricultural loan or credit limitation.
A state chartered bank in satisfactory condition, with the consent of its governing board, may request an exception to the loan or credit limitation as provided in §51A-12-2 from the director. The bank shall apply for such an exception on forms prescribed by the director. The director may approve the exception if the loan is not on the loan watch list or problem loan report of the bank, or classified at the most recent regulatory examination, and the loan shall be:
(1)Fully secured by the fair market value of the collateral and may not exceed one hundred percent of the discounted value assigned by the bank to the collateral;
(2)An agricultural loan in the bank's normal trade area; and
(3)Originated by the requesting bank.
No loan approved under this section may exceed an amount greater than the sum of twenty-five percent of the bank's capital stock or members' equity, surplus, and undivided profits. Such limit shall be determined on the basis of the bank's quarterly report of condition for the immediately previous calendar quarter and remain in effect until the loan expires as provided in §51A-12-2.2. The aggregate balance of all loans or extensions of credit made by a bank pursuant to this section may not exceed one hundred percent of the bank's tier one leverage capital.
Source:
SL 2012, ch 234, §1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-2.2 - Expiration of exception--New exception request.

51A-12-2.2. Expiration of exception--New exception request.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-2.3 - Loan defined.

51A-12-2.3. Loan defined.
For the purpose of calculating loan or credit limitations pursuant to §51A-12-2, a loan includes any credit exposure to a borrower arising from a derivative transaction, repurchase agreement, reverse repurchase agreement, securities lending transaction, or securities borrowing transaction between a bank and that borrower.
Source:
SL 2013, ch 240, §1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-2.4 - Derivative transaction defined.

51A-12-2.4. Derivative transaction defined.
For purposes of §51A-12-2.3, a derivative transaction is any transaction that is a contract, agreement, swap, warrant, note, or option that is based in whole, or in part, on the value of any interest in, or any quantitative measure or the occurrence of any event relating to interest rates.
Source:
SL 2013, ch 240, §2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-4 - Loan to customer used for partnership or corporation.

51A-12-4. Loan to customer used for partnership or corporation.
A loan or other extension of credit to a customer, the proceeds of which the customer intends to place in a partnership in which he is a partner or a corporation in which he is a stockholder, is not required to be combined with obligations of the partnership or corporation for the purpose of §51A-12-2 unless the loan is made in reliance on the assets and repayment ability of the partnership or the corporation.
Source:
SL 1969, ch 11, §10.2; SL 1970, ch 265, §53; SDCL, §51-24-4; SL 1993, ch 351, §2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-5 - Discounting not considered as money borrowed for purposes of loan limitation.

51A-12-5. Discounting not considered as money borrowed for purposes of loan limitation.
For the purposes of §51A-12-2, the discount of bills of exchange drawn in good faith against actual existing values, and the discount of commercial paper actually owned by the person negotiating the same shall not be considered as money borrowed.
Source:
SL 1909, ch 222, art 2, §29; SL 1915, ch 102, art 2, §33; RC 1919, §8980; SL 1923, ch 114; SL 1927, ch 59, §1; SDC 1939, §6.0428; SL 1943, ch 18; SL 1947, ch 27; SL 1957, ch 14; SL 1961, ch 19; SL 1963, ch 27; SDCL, §51-11-9; SL 1969, ch 11, §10.3; SDCL, §51-24-5.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-6 - Maximum amount of loans by bank to its executive officers, directors, and certain shareholders.

51A-12-6. Maximum amount of loans by bank to its executive officers, directors, and certain shareholders.
The maximum amount of loans by a bank to its executive officers, its directors, and its shareholders who individually own more than ten percent of the capital stock of the bank or its parent bank holding company, shall be set by rules promulgated by the commission pursuant to chapter 1-26. The commission rule may not be more restrictive than restrictions imposed by that bank's primary federal regulator.
Loans to any partnership or corporation in which such officers, directors, and shareholders own an aggregate interest of twenty percent or more shall be included as a loan to the officers, directors, and shareholders.
Source:
SDC 1939, §6.0429; SDCL, §51-11-12; SL 1969, ch 11, §10.5; SL 1979, ch 321, §2; SL 1981, ch 346, §53; SL 1988, ch 377, §147; SDCL, §51-24-8; SL 1994, ch 365, §1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-8 - Liability of officers and directors for excessive loans.

51A-12-8. Liability of officers and directors for excessive loans.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-9 - Nonrisk and government guaranteed loans not included in loan limits.

51A-12-9. Nonrisk and government guaranteed loans not included in loan limits.
For the purpose of determining whether a loan is within the loan limits established by this chapter, that portion of a loan described in subdivisions (1), (2) and (3) of this section may not be considered as part of the loan:
(1)That portion of a loan which is secured by a certificate of deposit, time savings certificate or prior evidence of obligation from the bank to the borrower, which obligation is not payable on demand by the borrower;
(2)That portion of a loan secured by bonds, notes, certificates of indebtedness or treasury bills of the United States or by other such obligations, which are backed by the full faith and credit of any department, agency, bureau, board, commission or establishment of the United States or any corporation owned directly or indirectly by the United States;
(3)That portion of a loan secured by unconditional takeout commitments or guarantees of any department, agency, bureau, board, commission or establishment of the state of South Dakota, or of the United States or any corporation owned directly or indirectly by the United States.
Source:
SL 1981, ch 346, §60; SL 1986, ch 402; SDCL, §51-24-14; SL 1988, ch 377, §152; SL 1989, ch 411, §3; SDCL, §51-24-9.1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-10 - Sale of surplus federal reserve funds and excess bank funds not loan.

51A-12-10. Sale of surplus federal reserve funds and excess bank funds not loan.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-11 - Mortgage on real estate.

51A-12-11. Mortgage on real estate.
A bank may lend on the security of a first or subsequent mortgage on real estate.
Source:
SL 1969, ch 11, §10.7; SL 1981, ch 346, §56; SL 1988, ch 377, §150; SDCL, §51-24-10.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-12 - Revolving credit authorized.

51A-12-12. Revolving credit authorized.
A bank may extend credit and collect a credit service charge through a revolving loan account arrangement with a debtor which permits the debtor to obtain loans from time to time by cash advances, by the purchase or satisfaction by the bank of obligations of the debtor incurred pursuant to a credit transaction, or otherwise under a credit card, check-credit, overdraft checking or other similar credit plan. A revolving loan account arrangement between a bank located in the State of South Dakota and a debtor shall be governed by the laws of the State of South Dakota.
Source:
SL 1969, ch 11, §10.8; SL 1981, ch 346, §58; SL 1987, ch 360, §1; SL 1988, ch 377, §151; SDCL §51-24-12; SL 2014, ch 227, §1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-13 - Collection of certain credit service charges by bank.

51A-12-13. Collection of certain credit service charges by bank.
Notwithstanding any other provisions of law, a bank may contract for and collect the following credit service charges in connection with the extensions of credit made pursuant to §51A-12-12, in an amount agreed to by the bank and the debtor either initially or pursuant to a change in terms authorized in § 54-11-12:
(1)Membership fees, whether assessed on an annual or other periodic basis;
(2)Transaction fees;
(3)Interest charges permitted by §54-3-1.1;
(4)Charges for exceeding a designated credit limit;
(5)Charges for stopping payment;
(6)Charges for each return of a dishonored check, negotiable order of withdrawal or draft; and
(7)Other charges made in connection with the revolving loan or charge account arrangement.
All of the fees and charges permitted by this section shall be deemed interest. No fee, expense or other charge whatsoever may be taken or received by a bank under a revolving loan or charge account arrangement except as provided in this section.
Source:
SL 1987, ch 360, §2; SDCL, §51-24-12.1; SL 2021, ch 204, § 6.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-14 - Right of offset on loans.

51A-12-14. Right of offset on loans.
In addition to the general lien created by §44-11-11 in favor of a bank on all property in possession of the bank belonging to its customers, a bank may offset against all loan balances, whether principal or interest, owed to the bank by a customer, all or any portion of the bank's obligation to the customer in the form of certificates of deposit, time savings certificates and any other form of deposit.
Source:
SL 1981, ch 346, §61; SDCL, §51-24-15.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-15 - Compounding interest and service fees.

51A-12-15. Compounding interest and service fees.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-16 - Security interests authorized.

51A-12-16. Security interests authorized.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 12 - Bank Loans › Section 51A-12-17 - Maintenance of deposit as condition for loan.

51A-12-17. Maintenance of deposit as condition for loan.
A bank may require a borrower to maintain funds on deposit as a condition precedent to the granting of credit or any loan.
Source:
SL 1983, ch 359, §2; SDCL, §51-24-18.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 13 - Bank Records, Accounts And Reports › Section 51A-13-1 - Books and accounts required by director--Civil penalty.

51A-13-1. Books and accounts required by director--Civil penalty.
Every bank shall keep such books and accounts as the director may require for the purpose of showing the true condition of the bank, and shall keep accurate, convenient, and complete records of such transactions and accounts in permanent form. Any bank which fails or refuses to open and keep such books or accounts shall be subject to a civil penalty of fifty dollars for each day it violates this section, and the director shall have authority to institute legal proceedings for the recovery of such penalty.
Source:
SL 1915, ch 102, art 2, §21; RC 1919, §8968; SDC 1939, §6.0434; SDCL, §51-12-1; SL 1969, ch 11, §11.1; SL 1970, ch 265, §56; SL 1980, ch 24, §87; SDCL, §51-25-1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 13 - Bank Records, Accounts And Reports › Section 51A-13-2 - Reports to director.

51A-13-2. Reports to director.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 13 - Bank Records, Accounts And Reports › Section 51A-13-3 - Failure to report--Civil penalty.

51A-13-3. Failure to report--Civil penalty.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 13 - Bank Records, Accounts And Reports › Section 51A-13-4 - Fiduciary examinations.

51A-13-4. Fiduciary examinations.
Only summary examinations and reports shall be required with respect to fiduciary activities which are subject to court accountings.
Source:
SL 1969, ch 11, §11.5; SDCL, §51-25-5.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 13 - Bank Records, Accounts And Reports › Section 51A-13-5 - Preservation of records.

51A-13-5. Preservation of records.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 14 - Reorganization Of Banks › Section 51A-14-1 - Merger or consolidation of banks.

51A-14-1.Merger or consolidation of banks.
A bank authorized under this title may merge or consolidate with another state bank, national bank or savings and loan association organized pursuant to 12 U.S. C. §1464 as amended as of January 1, 1990. The provisions of §§51A-2-16 and 51A-3-7 to 51A-3-12, inclusive, govern applications for mergers and consolidations.
Source:
SL 1909, ch 222, art 2, §24; SL 1911, ch 255, §31; SL 1915, ch 102, art 2, §27; RC 1919, §§8974, 9061; SDC 1939, §6.0404; SDCL §51-13-1; SL 1969, ch 11, §12.1; SL 1979, ch 325; SL 1981, ch 346, §64; SL 1988, ch 377, §156; SL 1990, ch 383, §1; SDCL §51-26-1; SL 2012, ch 252, §22.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 14 - Reorganization Of Banks › Section 51A-14-2 - Purchase of assets and assumption of liabilities.

51A-14-2.Purchase of assets and assumption of liabilities.
A bank may purchase the assets and assume the liabilities of another state bank, national bank or savings and loan association organized pursuant to 12 U.S. C. §1464 as amended as of January 1, 1990. The provisions of §§51A-2-16 and 51A-3-7 to 51A-3-12, inclusive, govern such applications.
Source:
SL 1981, ch 346, §65; SDCL §51-26-4; SL 1988, ch 377, §159; SL 1990, ch 383, §2; SDCL §51-26-1.1; SL 2012, ch 252, §23.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 14 - Reorganization Of Banks › Section 51A-14-3 - Conversion from state bank to national bank.

51A-14-3. Conversion from state bank to national bank.
Any bank may make application for reorganization as a national bank under the laws of the United States. The bank shall forward to the director a copy of a resolution of the board of directors to convert to a national bank. In the event such bank secures a certificate from the comptroller of the currency authorizing it to transact business as a national bank, such national bank shall take and hold all the assets, real and personal, of such state bank, subject to all liabilities existing against such bank at the time of such reorganization, and shall immediately notify the director of such reorganization and transfer. At the time of reorganization, the directors of such bank shall institute proceedings to dissolve legally the old state bank charter in the same manner as provided herein for dissolution under voluntary liquidation.
Source:
SL 1909, ch 222, art 2, §22; SL 1915, ch 102, art 2, §25; RC 1919, §8972; SDC 1939, §6.0406; SDCL, §51-13-2; SL 1969, ch 11, §12.2; SL 1988, ch 377, §157; SDCL, §51-26-2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 14 - Reorganization Of Banks › Section 51A-14-4 - Conversion from national bank, federal savings association, or federal savings bank to state bank.

51A-14-4. Conversion from national bank, federal savings association, or federal savings bank to state bank.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 14 - Reorganization Of Banks › Section 51A-14-5 - Liquidation procedures in the event of reorganization.

51A-14-5. Liquidation procedures in the event of reorganization.
If a bank has been merged or consolidated with another bank or the bank's assets have been purchased and the bank's liabilities assumed by another bank, in any instance other than an emergency, within thirty days thereafter, the directors of the bank shall institute proceedings to legally dissolve the bank's charter in the same manner as provided for voluntary liquidation in chapter 51A-15. However, no notice need be given pursuant to §51A-15-3. Approval by the director of the merger, consolidation, or purchase of assets and assumption of liabilities constitutes approval of the voluntary liquidation as provided in §51A-15-1. However, the approval is subject to approval of the proposal to liquidate and dissolve by a vote of two-thirds of the outstanding stock of the liquidating bank at a meeting called for the purpose of considering such action.
Source:
SL 1981, ch 346, §66; SL 1988, ch 377, §160; SL 1989, ch 411, §4; SDCL §51-26-5; SL 2015, ch 239, §8.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 14 - Reorganization Of Banks › Section 51A-14-6 - Emergency takeover.

51A-14-6. Emergency takeover.
If the director, pursuant to §51A-15-21, or if the commission deems it necessary that a state bank, national bank, or savings and loan association organized pursuant to 12 U.S.C. §1464 as amended as of January 1, 1990, be merged, consolidated, or its assets purchased and its liabilities assumed in order to protect the depositors and the public from unsound practices, and another bank is willing to merge, consolidate, or purchase the assets and assume the liabilities of such financial institution, the commission may declare that such merger, consolidation, or purchase of assets and assumption of liabilities shall constitute an emergency takeover. The commission may waive any requirement, whether by law or by rule, relative to required application materials, thoroughness of the director's investigation, and length of time before the commission may act. Nothing in this section limits in any way the rights of shareholders of either financial institution to approve the transaction and the manner required by state or federal law.
Source:
SL 1981, ch 346, §67; SL 1988, ch 377, §161; SL 1990, ch 383, §3; SDCL §51-26-6; SL 2012, ch 252, §25.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 14 - Reorganization Of Banks › Section 51A-14-7 - Valuation of dissident shareholders' stock.

51A-14-7. Valuation of dissident shareholders' stock.
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.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 15 - Suspension And Liquidation Of Banks › Section 51A-15-1 - Voluntary liquidation--Requirements for approval.

51A-15-1. Voluntary liquidation--Requirements for approval.
Any bank may file an application with the commission to voluntarily liquidate and dissolve. Such application may be approved by the commission upon finding:
(1)The proposal to liquidate and dissolve has been approved by a vote of two-thirds of the outstanding voting stock at a meeting called for the purpose of considering such action.
(2)The bank is solvent and has sufficient liquid assets to forthwith pay off depositors and creditors.
Source:
SL 1969, ch 11, §13.1; SL 1970, ch 265, §60; SL 1988, ch 377, §163; SDCL, §51-27-1.