reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-20.1 - "Community development corporation" defined.

51A-4-20.1."Community development corporation" defined.
For the purposes of §§51A-4-20 to 51A-4-20.3, inclusive, the term "community development corporation" is limited to those community development corporations that are substantially invested in South Dakota communities.
Source:
SL 1992, ch 334, §1A.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-20.2 - Qualification of community development corporation as permissible investment.

51A-4-20.2. Qualification of community development corporation as permissible investment.
To qualify as a permissible investment for banks pursuant to §51A-4-20, a community development corporation shall be of a predominantly civic, community, or public nature and not merely private and entrepreneurial. Any project or entity which has been approved as a community development corporation by the Office of the Comptroller of the Currency, the Federal Reserve Board, or any other federal bank regulatory authority shall be eligible for investment by a bank, subject to the limitations of §§51A-4-20 to 51A-4-20.3, inclusive.
Source:
SL 1992, ch 334, §1B.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-20.3 - Promulgation of rules for investment in community development corporations.

51A-4-20.3. Promulgation of rules for investment in community development corporations.
The Banking Commission may, by rule promulgated pursuant to chapter 1-26, establish additional requirements concerning a bank's investment in community development corporations and may establish criteria for permissible community development corporation investments.
Source:
SL 1992, ch 334, §1C.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-20.4 - Investments to promote public welfare authorized--Limitations.

51A-4-20.4. Investments to promote public welfare authorized--Limitations.
A bank may make investments designed primarily to promote the public welfare, including the welfare of low and moderate income communities or families. A bank may make such investments directly or by purchasing interests in an entity primarily engaged in making such investments. No bank may make any such investment if the investment would expose the bank to unlimited liability. The director shall limit a bank's investments in any one project and a bank's aggregate investments under this section. A bank's aggregate investments under this section may not exceed an amount equal to the sum of five percent of the bank's capital, surplus, and undivided profits, unless the director determines by order that the higher amount will not pose a significant risk to the bank and the bank is adequately capitalized. In no case may a bank's aggregate investments under this section exceed an amount equal to the sum of ten percent of the bank's capital stock actually paid in and unimpaired and ten percent of the bank's unimpaired surplus fund.
Source:
SL 2002, ch 218, §1; SL 2015, ch 239, §2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-21 - Bad debts--Maximum time allowed before charge-off--Overdraft not allowed as asset.

51A-4-21. Bad debts--Maximum time allowed before charge-off--Overdraft not allowed as asset.
Any debt due to any bank on which the interest is past due and unpaid for a period of six months unless the debt is well secured or in process of collection, shall be considered a bad debt and be charged to the reserve for loan and lease losses. In no case may an overdraft be held as an asset by any bank for a period of time longer than that set by the rules of the commission.
Source:
SDC 1939, §6.0432; SDCL, §51-11-14; SL 1969, ch 11, §4.16; SL 1981, ch 346, §35; SL 1988, ch 377, §93; SDCL, §51-18-17; SL 1991, ch 390, §6; SL 1997, ch 271, §1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-22 - Purchase of retail installment contract--Terms and effect of agreement.

51A-4-22. Purchase of retail installment contract--Terms and effect of agreement.
A bank may purchase or acquire or agree to purchase or acquire, from any seller, any retail installment contract on such terms and conditions and for such price as may be agreed upon between them. Any such agreement does not give rise to any agency relationship between the bank and such seller, neither being agent nor principal of the other.
Source:
SL 1969, ch 11, §4.17; SL 1988, ch 377, §94; SDCL, §51-18-18.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-23 - Leasing of personal property by bank--Terms and conditions.

51A-4-23. Leasing of personal property by bank--Terms and conditions.
A bank may, on its own behalf or through a designated subsidiary, acquire and lease to others, personal property with the approval of the director or in accordance with rules adopted by the commission, upon the following terms and conditions:
(1)The original lease shall be in writing and shall be entered into prior to the acquisition of the property to be leased; and
(2)The terms of such lease shall require payment to the bank or subsidiary of rentals during the minimum period of the lease which in the aggregate will exceed the total expenditures by the bank for or in connection with the acquisition, ownership, and protection of the property, less residual value of the property.
Source:
SL 1969, ch 11, §4.18; SL 1970, ch 265, §31; SL 1988, ch 377, §95; SDCL, §51-18-19.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-24 - Factoring--Applicability of lending limit provisions.

51A-4-24. Factoring--Applicability of lending limit provisions.
A bank may engage in the business of purchasing open accounts. Where a bank purchases open accounts but the seller agrees to repurchase such accounts upon default, the seller's obligation to repurchase shall be taken into consideration in computing the bank's lending limit to the seller under §51A-12-2. Such obligation shall be measured by the total unpaid balance of the open accounts owned by the bank less the applicable seller's reserves against defaulted open accounts, if any. Where the seller's obligation to repurchase is limited, it shall be measured by the total amount of the open accounts which the seller may ultimately be obligated to repurchase.
Where no more than the agreed percentage of the price paid for such open accounts is retained and credited to a reserve to be held as a form of collateral security, and where the bank has no direct or indirect recourse against the seller for uncollectibility, neither the reserve nor the obligations of the parties liable on such accounts constitute obligations of the seller subject to the lending limit under §51A-12-2.
Source:
SL 1969, ch 11, §4.20; SL 1970, ch 265, §33; SDCL, §51-18-21.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-25 - Bank investments--Restrictions set by rule--Limitations.

51A-4-25. Bank investments--Restrictions set by rule--Limitations.
A bank may purchase for its own account investment securities and registered mutual funds that invest exclusively in securities of the United States or its agencies and annuities as defined in §51A-4-25.1 under such limits and restrictions as the commission may prescribe by rule, promulgated pursuant to chapter 1-26. In no event may the total amount of the investment securities of any one obligor or maker held by the bank for its own account exceed twenty percent of the capital stock and surplus and ten percent of the undivided profits of such bank except as provided in §51A-4-26.
Source:
SL 1969, ch 11, §4.21; SL 1986, ch 400, §14; SL 1988, ch 377, §96; SDCL, §51-18-22; SL 1994, ch 362; SL 2002, ch 219, §1; SL 2020, ch 4, § 28.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-25.1 - Annuity defined.

51A-4-25.1. Annuity defined.
For the purposes of §51A-4-25, an annuity is an investment that credits interest from the inception of the contract, has an interest guarantee period that may be from thirty days to one year in length, and is backed by the assets of the insurer. The insurer shall be rated in the top three categories of both Standard and Poor's Corporation and Moody's Investors Service. The annuity shall be fully liquid, unless otherwise provided for by Title 58. The annuity may not be subject to any surrender charge.
Source:
SL 2002, ch 219, §2; SL 2005, ch 252, §1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-26 - Exceptions to investment limitation--Purchase of federal, state, and municipal obligations and bonds or interim notes of South Dakota Building Authority.

51A-4-26. Exceptions to investment limitation--Purchase of federal, state, and municipal obligations and bonds or interim notes of South Dakota Building Authority.
A bank may, without limitation as to capital stock and surplus, purchase bonds, notes, debentures, or other obligations issued by or the payment of which is guaranteed by the United States government or any agency or subdivision thereof, including the Federal Home Loan Mortgage Corporation, Federal Agricultural Mortgage Corporation, the State of South Dakota, any state, territorial, or insular possession of the United States, any county, rural district, school district, municipality, or township of the State of South Dakota, or any out-of-state county, municipality, or political subdivision, if such bonds, notes, debentures, or obligations are general obligations of the issuing authority. A bank may, without such limitation purchase state, municipal, or school district subdivision bonds or notes which are fully defeased as to principal and interest and may also purchase bonds or interim notes issued by the South Dakota Building Authority. The Banking Commission may by rule grant additional investment exceptions, if such additional investments are the general obligation of the issuing authority. A bank may purchase stock in the Federal Agricultural Mortgage Corporation established under Title VII of the Agricultural Credit Act of 1987 (P.L. 233).
Source:
SDC 1939, §6.0428 as added by SL 1957, ch 14; SL 1961, ch 19; SL 1963, ch 27; SL 1966, ch 14; SDCL, §51-11-1; SL 1969, ch 11, §4.22; SL 1970, ch 265, §34; SL 1978, ch 352, §2; SL 1984, ch 312; SL 1988, ch 377, §97; SL 1988, ch 379, §1; SL 1988, ch 380, §1; SDCL, §51-18-23.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-27 - Investments in agricultural credit corporations and livestock loan companies.

51A-4-27. Investments in agricultural credit corporations and livestock loan companies.
Any bank may purchase and own stock and capital notes or other evidence of debt issued by:
(1)An agricultural credit corporation or livestock loan company, or its affiliate, the principal business of which corporation is the extension of short and intermediate term credit to farmers and ranchers, including partnerships and corporations legally engaged in farming as defined in subdivision 47-9A-2(4) in accordance with the provisions of chapter 47-9A; and
(2)Exempt corporations as provided in §§47-9A-10 and 47-9A-11.
Unless a bank owns at least eighty percent of the stock of the agricultural credit corporation or livestock loan company, it may not obligate more than twenty percent of its capital stock and surplus for those purposes. Under no circumstances may a bank obligate more than twenty percent of its capital stock and surplus and undivided profits for that purpose. Any agricultural credit corporation or livestock loan company, or its affiliate, has the same privileges as a state chartered bank or trust company provided in §47-9A-4.
Source:
SL 1977, ch 398; SL 1981, ch 346, §36; SL 1982, ch 335; SL 1983, ch 358; SL 1988, ch 377, §98; SDCL, §51-18-23.1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-28 - Restricted investment in mortgage banking companies authorized.

51A-4-28. Restricted investment in mortgage banking companies authorized.
Any bank may purchase and own stock and capital notes or other evidence of debt issued by a mortgage banking company, or its affiliate, the principal business of which is the extension of short, intermediate or long-term credit to individuals, partnerships and corporations, which credit is secured by real estate mortgages. A bank shall own at least eighty percent of the stock of any such mortgage banking company and may not obligate more than thirty percent of its capital stock and surplus and undivided profits for such purpose.
Source:
SL 1984, ch 313; SL 1988, ch 377, §99; SDCL, §51-18-23.2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-29 - Banks authorized to make or purchase loans secured by real estate mortgages--Sale of loans to Federal National Mortgage Association--Capital contributions.

51A-4-29. Banks authorized to make or purchase loans secured by real estate mortgages--Sale of loans to Federal National Mortgage Association--Capital contributions.
A bank or other banking organization, organized under the laws of this state, which has as one of its principal purposes the making or purchasing of loans secured by real estate mortgages, may make real estate mortgage loans in any form, including but not limited to variable rate mortgages, collateral real estate mortgages, renegotiated rate mortgages, and shared appreciation mortgages, unless otherwise prohibited by law and may, notwithstanding any other provision of law, sell such mortgage loans to the Federal National Mortgage Association, a corporation chartered by an act of Congress, or any successor thereof, and in connection therewith may make payments of any capital contributions, required pursuant to law, in the nature of subscriptions for stock of the Federal National Mortgage Association or any successor thereof, and may receive stock evidencing such capital contributions, and hold or dispose of such stock.
Source:
SL 1955, ch 231; SDC Supp 1960, §39.0309; SDCL, §51-11-2; SL 1981, ch 346, §37; SDCL, §51-18-24; SL 1995, ch 268, §65.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-30 - Investment in federally sponsored housing loans.

51A-4-30. Investment in federally sponsored housing loans.
Banks and trust companies authorized to do business under this title that are approved or certified by the secretary of housing and urban development or approved or certified by the administrator of veterans affairs may:
(1)Make such loans and advances of credit and purchases of obligations representing loans and advances of credit as are eligible for insurance by the federal housing administration or the administrator of veterans affairs and to obtain such insurance;
(2)Make such loans, secured by real property or leasehold, as the federal housing administration or the administrator of veterans affairs insures or makes a commitment to insure and to obtain such insurance.
Source:
SL 1935, ch 112, §1; SL 1937, ch 161, §1; SDC 1939, §55.4401; SDCL, §51-11-3; SL 1970, ch 266; SL 1988, ch 377, §100; SDCL, §51-18-25.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-42 - Restrictions on purchase of cash value life insurance contracts.

51A-4-42. Restrictions on purchase of cash value life insurance contracts.
A bank may purchase cash value life insurance contracts under such limits and restrictions as the commission may prescribe by rules promulgated pursuant to chapter 1-26.
Source:
SL 1993, ch 350.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-43 - Access to motor vehicle title and lien information on state's computer system.

51A-4-43. Access to motor vehicle title and lien information on state's computer system.
Any bank may be provided access to motor vehicle title and lien information maintained on the state's computer system via a modem and terminal owned by the bank. The Department of Labor and Regulation shall promulgate rules pursuant to chapter 1-26 to specify access availability. The secretary of state shall promulgate rules pursuant to chapter 1-26 to specify cost of access. The Department of Revenue may deny or revoke authority previously granted for accessing this information if the information accessed is used for any reason unrelated to the business of the bank.
Source:
SL 1994, ch 363, §1; SL 2003, ch 272 (Ex. Ord. 03-1), §82; SL 2011, ch 1 (Ex. Ord. 11-1), §162, eff. Apr. 12, 2011.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-44 - Financial institution and services defined.

51A-4-44. Financial institution and services defined.
Terms used in §51A-4-45 mean:
(1)"Financial institution," a National Banking Association, Federal Savings and Loan Association having its main office in this state, or a bank established and operated under the laws of this state;
(2)"Services," receiving deposits, renewing time deposits, closing loans, servicing loans, and receiving payments on loans and other obligations.
Source:
SL 1995, ch 267, §1; SL 2015, ch 239, §3.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-45 - Contracts for services.

51A-4-45. Contracts for services.
Unless prohibited by another provision of statute, a financial institution, known as the customer institution, may contract with another financial institution, known as the service institution, to grant the service institution the authority to render services to the depositors, borrowers, or other customers of the customer institution, after notice of the proposed contract is given to the director and the director does not object to the contract within thirty days of the notice. A contract may include authority to conduct transactions at or through any principal office, branch, or detached facility of either financial institution which is party to the contract. For the purposes of this section, the service institution is not considered a branch of the customer institution. Nothing in this section or §51A-4-44 may be construed to apply to any loan production office as defined in subdivision 51A-1-2(18).
Source:
SL 1995, ch 267, §2; SL 2012, ch 252, §15; SL 2015, ch 239, §4.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 04 - General Powers Of Banks › Section 51A-4-46 - Debt cancellation contracts and debt suspension contracts--Fee.

51A-4-46. Debt cancellation contracts and debt suspension contracts--Fee.
A bank may enter into debt cancellation contracts and debt suspension contracts and charge a fee for those contracts in connection with any extension of credit that it makes to its customers.
Source:
SL 2004, ch 290, §2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-1 - Use of "trust" in name restricted--Exercise of trust powers restricted--Misdemeanor.

51A-5-1. Use of "trust" in name restricted--Exercise of trust powers restricted--Misdemeanor.
No person may assume or use the word "trust" in such person's name in any manner which infers or suggests that the person has authority to transact such business unless the person is authorized to transact trust business pursuant to this title. A violation of this paragraph is a Class 2 misdemeanor.
No bank may exercise trust powers unless it is so authorized by its articles of incorporation and approved by the director and it has qualified by making the deposit required by §51A-5-4. Any person who exercises trust powers in violation of this section is guilty of a Class 2 misdemeanor.
Source:
SDC 1939, §§6.0504, 6.9906; SDCL §51-7-1; SL 1969, ch 11, §5.1; SL 1970, ch 265, §35; SL 1975, ch 291; SL 1980, ch 24, §86; SL 1988, ch 377, §109; SL 1990, ch 158, §5; SL 1990, ch 158, §5; SDCL §51-19-1; SL 1994, ch 364, §1; SL 2008, ch 258, §1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-1.1 - Powers of banks engaging in trust business.

51A-5-1.1. Powers of banks engaging in trust business.
Banks engaging in the trust business pursuant to this chapter have all powers necessary and incidental to carrying on the trust business, including:
(1)Acting as agent, custodian, or attorney-in-fact for any person, and, in such capacity, taking and holding property on deposit for safekeeping and acting as general or special agent or attorney-in-fact in the acquisition, management, sale, assignment, transfer, encumbrance, conveyance, or other disposition of property, in the collection or disbursement of income from or principal of property and, generally in any matter incidental to any of the foregoing;
(2)Acting as registrar or transfer agent for any corporation, partnership, association, municipality, state, or public authority, and in such capacity, receiving and disbursing money, transferring, registering, and countersigning certificates of stock, bonds or other evidences of indebtedness or securities and performing any and all acts which may be incidental thereto;
(3)Acting as trustee or fiduciary under any mortgage or bond issued by a person;
(4)Acting as trustee or fiduciary under any trust established by a person;
(5)Acting as fiduciary, assignee for the benefit of creditors, receiver or trustee under or pursuant to the order or direction of any court or public official of competent jurisdiction;
(6)Acting as fiduciary, guardian, conservator, assignee, or receiver of the estate of any person and as executor of the last will and testament or administrator, fiduciary or personal representative of the estate of any deceased person when appointed by a court or public official of competent jurisdiction;
(7)Establishing and maintaining common trust funds or collective investment funds pursuant to the provisions of chapter 55-6; or
(8)Acting in any fiduciary capacity and performing any act as a fiduciary which a trust company organized under chapter 51A-6A may perform.
Source:
SL 1995, ch 268, §85; SL 2011, ch 212, §20; SL 2021, ch 203, § 1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-1.2 - "Trust business" defined.

51A-5-1.2."Trust business" defined.
Trust business is engaging in, or holding out to the public as willing to engage in, the business of acting as a fiduciary for hire, except that no abstractor, accountant, attorney, credit union, insurance broker, insurance company, investment advisor, real estate broker or sales agent, savings and loan association, savings bank, securities broker or dealer, real estate title insurance company or real estate escrow company shall be deemed to be engaged in a trust business with respect to fiduciary services customarily performed by them for compensation as a traditional incident to their regular business activities.
Source:
SL 1995, ch 268, §85A.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-2 - Bank as trustee or custodian for retirement benefit plans.

51A-5-2. Bank as trustee or custodian for retirement benefit plans.
Pursuant to rules of the commission and the terms of Public Law 93-406, the Employees Retirement Income Security Act of 1974 and the Self-employed Individuals Tax Retirement Act of 1962, a bank may act as trustee or custodian for individual retirement accounts, HR 10 Keogh accounts or both such accounts, or any other pension, profit-sharing, money purchase, or other retirement benefit plan.
Source:
SDCL, §51-19-1 as added by SL 1975, ch 291; SL 1981, ch 346, §40; SL 1988, ch 377, §110; SDCL, §51-19-1.1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-3 - Fiduciary authority of bank authorized by charter to exercise trust powers.

51A-5-3. Fiduciary authority of bank authorized by charter to exercise trust powers.
A bank authorized to exercise trust powers may act as fiduciary in any capacity, including, but without limitation, registrar or transfer agent, fiscal agent or attorney in fact, and as having the power to receive and apply sinking funds.
Source:
SL 1911, ch 255, §17; RC 1919, §9047; SDC 1939, §6.0501 (1) to (4), (6); SDCL, §§51-7-4 to 51-7-8; SL 1969, ch 11, §5.2; SL 1988, ch 377, §111; SDCL, §51-19-2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-4 - Deposit required to do trust business--Amount and form of deposit--Disposition of income.

51A-5-4. Deposit required to do trust business--Amount and form of deposit--Disposition of income.
Any bank empowered by its articles of incorporation to do trust business, shall, before transacting any such business, deposit and keep on deposit with the division evidences of indebtedness acceptable to the director which are payable to bearer or recorded in the name of the division and which constitute readily marketable legal investments for funds held by a bank as fiduciary in the amount of one hundred thousand dollars. Such deposit shall be for the security of the trust creditors of such bank or trust company, and shall be in bonds or notes and mortgages on real property within this state worth double the amount secured thereby, or insured by the federal housing administration, or bonds of the United States, or any state of the United States that has not defaulted on its principal or interest within ten years, or any organized county or township or first or second class municipality or school district in this state or some other state, and upon which there has been no default in payment of interest or principal. Income from such securities shall belong to and be paid the bank or trust company as long as it continues to conduct its business in the ordinary course and so long as authorized by the director.
Source:
SDC 1939, §6.0502; SDCL §51-7-2; SL 1969, ch 11, §5.3; SL 1970, ch 265, §36; SL 1988, ch 377, §112; SDCL §51-19-3; SL 1992, ch 60, §2; SL 1994, ch 364, §2; SL 2010, ch 232, §23.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-5 - Deposit available for satisfaction of claims upon liquidation, abandonment of trust powers, or resignation from fiduciary positions.

51A-5-5. Deposit available for satisfaction of claims upon liquidation, abandonment of trust powers, or resignation from fiduciary positions.
Upon liquidation, abandonment of trust powers, or resignation from all fiduciary positions, the deposit shall be made available for the reasonable satisfaction of claims involving fiduciary accounts. Any surplus remaining after the satisfaction of all such claims shall be returned to the bank or trust company.
Source:
SL 1969, ch 11, §5.3; SDCL, §51-19-4; SL 1995, ch 268, §66.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-6 - National banks' authority to engage in trust business--Examination of trust business--Acceptance of federal examination.

51A-5-6. National banks' authority to engage in trust business--Examination of trust business--Acceptance of federal examination.
It is lawful for any national bank to engage in trust business in this state to the extent authorized by the laws of the United States, without incorporating or organizing under the laws of this state, but a national bank shall otherwise comply with and be subject to all laws of this state which are applicable to state banks engaged in trust business including such examinations as may be deemed necessary, except that the authority of the commission and the director shall apply to their trust business only. The director may accept in lieu of an examination conducted under the director's direction, any report of examination conducted by the appropriate federal regulatory agency.
Source:
SL 1915, ch 105; RC 1919, §8985; SL 1929, ch 76; SDC 1939, §6.0503; SDCL, §51-7-3; SL 1969, ch 11, §5.4; SL 1970, ch 265, §37; SL 1988, ch 377, §113; SDCL, §51-19-5; SL 2004, ch 289, §10.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-7 - Foreign bank or trust company to comply with requirements to act as fiduciary in state--Violation as misdemeanor.

51A-5-7. Foreign bank or trust company to comply with requirements to act as fiduciary in state--Violation as misdemeanor.
No bank or trust company organized and doing business under the laws of any state or territory of the United States of America, or of the District of Columbia, other than South Dakota, or a national bank doing business in any other state, territory, or district, may act in a fiduciary capacity in this state, except pursuant to the provisions of §§51A-5-8 to 51A-5-10, inclusive. A violation of this section is a Class 2 misdemeanor.
Source:
SL 1973, ch 292, §4; SL 1990, ch 158, §28; SDCL, §51-19-5.1; SL 1995, ch 268, §67; SL 1997, ch 272, §5.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-8 - Reciprocal privileges extended to foreign bank or trust company acting as fiduciary.

51A-5-8. Reciprocal privileges extended to foreign bank or trust company acting as fiduciary.
A bank or trust company organized and doing trust business under the laws of any state or territory of the United States of America, including the District of Columbia, other than South Dakota, and a national bank, duly authorized so to act, may be appointed and may serve in this state as trustee, whether of a corporation or personal trust, personal representative, guardian, conservator, or committee for an incompetent person, or in any other fiduciary capacity, whether the appointment is by will, deed, court order, or decree, or otherwise, when and to the extent that the state, territory, or district in which the bank or trust company is organized or has its principal place of business grants authority to serve in like fiduciary capacities to a bank or trust company organized and doing business under the laws of this state.
Source:
SL 1973, ch 292, §1; SL 1988, ch 377, §114; SDCL §51-19-5.2; SL 1995, ch 268, §68; SL 1997, ch 272, §6.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-9 - Filing with Office of the Secretary of State by foreign bank or trust company acting as fiduciary--Designation as agent to receive process--Service of process.

51A-5-9. Filing with Office of the Secretary of State by foreign bank or trust company acting as fiduciary--Designation as agent to receive process--Service of process.
Before qualifying or serving in this state in any fiduciary capacity, as defined in §51A-5-8, the bank or trust company shall file in the Office of the Secretary of State of South Dakota, a copy of its charter certified by its secretary under its corporate seal, and a power of attorney designating the secretary of state or the secretary of state's successor in office as the person upon whom all notices and processes issued by any court of this state may be served in any action or proceeding relating to any trust, estate, or matter within this state in respect of which the bank or trust company is acting in any fiduciary capacity with like effect as personal service on the bank or trust company. The power of attorney is irrevocable so long as any liability remains outstanding against the bank or trust company in this state. Service of process under this section may be made in the manner provided in chapter 59-11.
Source:
SL 1973, ch 292, §2; SDCL, §51-19-5.3; SL 1995, ch 268, §69; SL 1997, ch 272, §7; SL 2005, ch 202, §22; SL 2021, ch 204, § 1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-10 - Establishment of place of business not permitted or prohibited by filing requirements.

51A-5-10. Establishment of place of business not permitted or prohibited by filing requirements.
The provisions of §§51A-5-7 to 51A-5-9, inclusive, may not be construed to prohibit, permit, or affect in any other way, the right of a bank or trust company, organized and doing business under the laws of any other state, territory, or district than South Dakota, including a national bank doing business in any other state, to establish in this state a place of business, branch office, or agency for the conduct of business as a fiduciary.
Source:
SL 1973, ch 292, §3; SDCL, §51-19-5.4; SL 1995, ch 268, §70; SL 1997, ch 272, §8.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-11 - Investment powers of trust company.

51A-5-11. Investment powers of trust company.
A bank exercising trust powers shall have the same investment powers as an individual fiduciary under like circumstances.
Source:
SL 1969, ch 11, §5.5; SL 1970, ch 265, §38; SDCL, §51-19-6.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-12 - Voting of bank shares by cotrustee.

51A-5-12. Voting of bank shares by cotrustee.
Shares of its own stock held by a bank and one or more persons as trustees may be voted on by such other person or persons, as trustees, in the same manner as if he or they were the sole trustee.
Source:
SL 1970, ch 265, §39; SDCL, §51-19-6.1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-13 - Segregation of assets held by bank as fiduciary.

51A-5-13. Segregation of assets held by bank as fiduciary.
A bank holding any asset as fiduciary, shall:
(1)Segregate all such assets from any other assets of the bank and from the assets of other trusts, except as may be expressly provided otherwise by law or by the writing creating the trust.
(2)Record such assets in a separate set of books maintained for fiduciary activities.
Source:
SL 1969, ch 11, §5.6; SL 1975, ch 292, §§1, 2; SDCL, §51-19-7.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-14 - Deposit of federally guaranteed securities with federal reserve bank.

51A-5-14. Deposit of federally guaranteed securities with federal reserve bank.
Any bank, when holding securities as custodian for a fiduciary may deposit, or arrange for the deposit, with the federal reserve bank in its district of any securities the principal and interest of which the United States or any department, agency, or instrumentality of the United States has agreed to pay, or has guaranteed payment, to be credited to one or more accounts on the books of the federal reserve bank in the name of the bank. Any account used for this purpose shall be designated as a fiduciary or safekeeping account, and other similar securities may be credited. A bank depositing securities with a federal reserve bank is subject to such rules and regulations with respect to the making and maintenance of such deposit, as, in the case of state chartered institutions, the commission, and, in the case of national banking associations, the comptroller of the currency, may from time to time issue.
Source:
SDCL, §51-19-7 as added by SL 1975, ch 292, §1; SL 1988, ch 377, §115; SDCL, §51-19-7.1; SL 1995, ch 268, §71; SL 1997, ch 272, §9; SL 2021, ch 203, § 2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-15 - Records of depositor to show ownership of securities--Transfers by book entries.

51A-5-15. Records of depositor to show ownership of securities--Transfers by book entries.
The records of the bank must at all times show the ownership of the securities held in such account. Ownership of, and other interests in, the securities credited to such account may be transferred by entries on the books of the federal reserve bank without physical delivery of any securities.
Source:
SDCL, §51-19-7 as added by SL 1975, ch 292, §1; SDCL, §51-19-7.2; SL 1995, ch 268, §72; SL 1997, ch 272, §10; SL 2021, ch 203, § 3.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-16 - Custodian to certify deposited securities to fiduciary--Duty of fiduciary.

51A-5-16. Custodian to certify deposited securities to fiduciary--Duty of fiduciary.
A bank acting as custodian for a fiduciary shall, on demand by the fiduciary, certify in writing to the fiduciary the securities so deposited by the bank with the federal reserve bank for the account of the fiduciary. A fiduciary shall, on demand by any party to which it must account or on demand by the attorney for the party, certify in writing to the party the securities deposited by the fiduciary with the federal reserve bank for its account as the fiduciary.
Source:
SDCL, §51-19-7 as added by SL 1975, ch 292, §1; SDCL, §51-19-7.3; SL 1995, ch 268, §73; SL 1997, ch 272, §11; SL 2021, ch 203, § 4.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-17 - Application of provisions to fiduciaries and custodians whenever appointed.

51A-5-17. Application of provisions to fiduciaries and custodians whenever appointed.
Sections 51A-5-14 to 51A-5-16, inclusive, shall apply to all fiduciaries, and custodians for fiduciaries, acting as of July 1, 1975, or who thereafter may act regardless of the date of the instrument or court order by which they are appointed.
Source:
SDCL, §51-19-7 as added by SL 1975, ch 292, §2; SDCL, §51-19-7.4.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-19 - Oath or bond not required of bank to qualify as fiduciary.

51A-5-19. Oath or bond not required of bank to qualify as fiduciary.
No oath or bond shall be required of a bank to qualify upon appointment as a fiduciary unless the instrument creating a fiduciary position expressly provides otherwise.
Source:
SL 1969, ch 11, §5.8; SDCL, §51-19-9.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-20 - Nominees used by bank acting as fiduciary or cofiduciary.

51A-5-20. Nominees used by bank acting as fiduciary or cofiduciary.
Any bank, when acting as a fiduciary or a cofiduciary with others, or as an agent for other fiduciaries, may, with the consent of its cofiduciary or cofiduciaries, if any, who are hereby authorized to give such consent, or the fiduciaries for whom it is acting, cause any investment held in any such capacity to be registered and held in the name of a nominee or nominees of such bank. Such bank shall be liable for the acts of any such nominee with respect to any investment so registered. The records of such bank shall at all times show the trust for which any such investment is held and the securities shall be in the possession and control of such bank and be kept separate and apart from the assets of such bank.
Source:
SL 1969, ch 11, §5.9; SDCL, §51-19-10.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-21 - Deposit in clearing corporation of securities held as fiduciary or custodian.

51A-5-21. Deposit in clearing corporation of securities held as fiduciary or custodian.
Any fiduciary holding securities in its fiduciary capacity, any bank holding securities as a custodian or managing agent, and any bank holding securities as custodian for a fiduciary is authorized to deposit or arrange for the deposit of the securities in a clearing corporation as defined in subdivision 57A-8-102(5).
Source:
SL 1978, ch 357, §1; SDCL §51-19-10.1; SL 1995, ch 268, §74; SL 1997, ch 272, §12; SL 2015, ch 239, §5; SL 2021, ch 203, § 5.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-22 - Ownership of stock in clearing corporation not required for deposit of securities by fiduciary or custodian.

51A-5-22. Ownership of stock in clearing corporation not required for deposit of securities by fiduciary or custodian.
Sections 51A-5-21 to 51A-5-24, inclusive, apply to any fiduciary holding securities in its fiduciary capacity, and to any bank holding securities as a custodian, managing agent or custodian for a fiduciary, regardless of the date of the agreement, instrument, or court order by which it is appointed and regardless of whether or not the fiduciary, custodian, managing agent, or custodian for a fiduciary owns capital stock of the clearing corporation.
Source:
SL 1978, ch 357, §4; SDCL, §51-19-10.2; SL 2021, ch 203, § 6.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-23 - Holding in bulk of securities deposited in clearing corporation--Merger of certificates.

51A-5-23. Holding in bulk of securities deposited in clearing corporation--Merger of certificates.
Securities of the same class of the same issuer may be merged and held in bulk in the name of the nominee of such clearing corporation with any other such securities deposited in such clearing corporation by any person regardless of the ownership of such securities, and certificates of small denomination may be merged into one or more certificates of larger denomination.
Source:
SL 1978, ch 357, §2; SDCL, §51-19-10.3.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-24 - Records of securities deposited in clearing corporation--Transfer by book entry--Certification to interested party of securities held.

51A-5-24. Records of securities deposited in clearing corporation--Transfer by book entry--Certification to interested party of securities held.
The records of the fiduciary and the records of the bank acting as custodian, as managing agent or as custodian for a fiduciary shall at all times show the name of the party for whose account the securities are so deposited. Title to the securities may be transferred by bookkeeping entry on the books of the clearing corporation without physical delivery of certificates representing the securities. A bank so depositing securities pursuant to §51A-5-23 is subject to the rules as, in the case of state chartered institutions, the commission and, in the case of national banking associations, the comptroller of the currency may from time to time issue. A bank acting as custodian for a fiduciary shall, on demand by the fiduciary, certify in writing to the fiduciary the securities so deposited by the bank in the clearing corporation for the account of the fiduciary. A fiduciary shall, on demand by any party to a judicial proceeding for the settlement of the fiduciary's account or on demand by the attorney for the party, certify in writing to the party the securities deposited by the fiduciary in the clearing corporation for its account as the fiduciary.
Source:
SL 1978, ch 357, §3; SL 1988, ch 377, §116; SDCL, 51-19-10.4; SL 1995, ch 268, §75; SL 1997, ch 272, §13; SL 2021, ch 203, § 7.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-25 - Approval or ratification of acceptance or relinquishment of fiduciary accounts by board of directors or committee.

51A-5-25. Approval or ratification of acceptance or relinquishment of fiduciary accounts by board of directors or committee.
No bank shall accept or voluntarily relinquish a fiduciary account without the approval or ratification of the board of directors, or a committee of officers or directors designated by the board for that purpose, but the board or the committee may prescribe general rules governing acceptance or relinquishment of fiduciary accounts, and action taken by an officer in accordance with these rules is sufficient approval.
Source:
SL 1969, ch 11, §5.10; SDCL, §51-19-11.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-26 - Supervision of investment of fiduciary funds by committee designated by board of directors.

51A-5-26. Supervision of investment of fiduciary funds by committee designated by board of directors.
The board of directors shall designate one or more committees of not less than three qualified officers or directors to supervise the investment of fiduciary funds. No investment shall be made, retained, or disposed of without the approval of a committee. At least once each calendar year a committee shall review all assets of each fiduciary account and shall determine their current value, safety, and suitability and whether the investments should be modified or retained.
Source:
SL 1969, ch 11, §5.10; SDCL, §51-19-12.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 05 - Trust Business Of Banks › Section 51A-5-27 - Reports of committees designated to supervise fiduciary accounts.

51A-5-27. Reports of committees designated to supervise fiduciary accounts.
The committees provided for in §§51A-5-25 and 51A-5-26 shall keep minutes of their meetings, and shall fully report to the board of directors at least once in each calendar quarter all action taken since their previous report.
Source:
SL 1969, ch 11, §5.10; SDCL, §51-19-13.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-2 - Confidential information.

51A-6A-2. Confidential information.
For the purposes of this chapter, confidential information includes the names of stockholders or owners, names and addresses of the members of a private trust company's governing board, ownership information, capital contributions, addresses, business affiliations, state and commission findings through any examination or inquiry of any kind, and any information required to be reported or filed with the director or the commission, and any information or agreement relating to any merger, consolidation, or transfer.
Source:
SL 1995, ch 268, §1A; SL 2015, ch 240, §2; SL 2016, ch 231, §2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-3 - "Community" defined.

51A-6A-3."Community" defined.
For the purposes of this chapter, community shall be broadly construed and shall include geographic or market based parameters, or both.
Source:
SL 1995, ch 268, §1B.