reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-4 - Application for incorporation--Approval procedure--Emergency procedure.

51A-6A-4. Application for incorporation--Approval procedure--Emergency procedure.
No trust company may be incorporated or organized under the laws of this state or transact trust company business in this state until the application for its incorporation or organization and application or authority to do business and the location of its principal office have been submitted to and approved under the same procedure for bank applications as provided in §51A-2-16, except that conditions for considering an application involving a trust company shall be as set forth in §51A-6A-5. The director shall prescribe the form for making an application and any application submitted shall contain such information as required. The applicant may, with approval of the director, designate confidential information. Any costs associated with the public notice required in §51A-2-16 shall be paid by the applicant, in addition to the application fee required in §51A-6A-6.
If upon the dissolution or insolvency of any trust company, it is the opinion of the director that by reason of the loss of services in the community, an emergency exists which may result in serious inconvenience or losses to customers or it is in the public interest of the community, the director may accept and approve an application for incorporation or organization and an application for authority to do business without prior notice. Upon approval of an application by the director for authority to do business of a successor trust company, the director may call a special meeting of the commission and submit the application to the commission for its review and confirmation.
Source:
SL 1995, ch 268, §2; SL 2006, ch 243, §3; SL 2008, ch 258, §3; SL 2017, ch 204, §2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-5 - Considerations in ruling on application-Proceedings on application.

51A-6A-5. Considerations in ruling on application-Proceedings on application.
In ruling on an application required under this chapter, the director or the commission, as the case may be, shall consider the following:
(1)The financial standing, general business experience, and character of the organizers or incorporators of the applicant;
(2)The character, qualifications, and experience of the officers of the applicant;
(3)The applicant's ability to serve the community or clients as described in the application; and
(4)The prospects for success of the proposed trust company.
In any hearing on the application before the commission, the director shall submit to the commission for its consideration the director's findings with respect to the above conditions together with all other pertinent information in the director's possession. If the director or the commission, as the case may be, determines any of these conditions unfavorable to the applicant, then the application shall be disapproved, but if not, then the application shall be approved. Any proceeding before the commission on an application shall be held in conformance with chapter 1-26.
Source:
SL 1995, ch 268, §3; SL 2008, ch 258, §4.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-5.1 - Notice to division of material omission in application or change in facts reported in application.

51A-6A-5.1. Notice to division of material omission in application or change in facts reported in application.
Any trust company shall immediately notify the division of any material omission from the application or any material change in the facts reported in an application, either of which could have led to an unfavorable finding with respect to the criteria established in §51A-6A-5. Failure to so notify the division of the material omission from the application or the existence of the material change in facts as reported in the application, either of which could have led to an unfavorable finding with respect to the criteria established in §51A-6A-5, may subject the trust company to revocation proceedings or other regulatory action as provided in this title. The director shall give notice of the revocation or other regulatory action to the president or other managing officer of the trust company, and any revocation action shall thereupon proceed according to §51A-6A-38.
Source:
SL 2013, ch 239, §5.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-6 - Application fee.

51A-6A-6. Application fee.
All applications for charters under this chapter shall include a five thousand dollar application fee which is nonrefundable. This fee shall be remitted by the Division of Banking to the state general fund.
Source:
SL 1995, ch 268, §4; SL 1998, ch 282, §33.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-7 - Organization of public and private trust companies--Submission and approval of articles--Required information.

51A-6A-7. Organization of public and private trust companies--Submission and approval of articles--Required information.
Any three or more persons may organize a public trust company and make and file articles as provided by the laws of this state. Any one or more persons may organize a private trust company and make and file articles as provided by the laws of this state. No trust company may be organized or incorporated to engage in business as such until the articles have been submitted and approved in accordance with §51A-6A-4. The name selected for the trust company shall include the word, trust, and may not be the name of any other trust company doing business in the state. The director shall accept or reject the name. However, the approval of a trust company name by the director may not supersede any person's rights pursuant to state or federal trademark law. The articles, in addition to any other information required by law, shall state:
(1)That the corporation or limited liability company is formed for the purpose of engaging in the trust company business; and
(2)The period for which such corporation or limited liability company is organized, which may be perpetual.
The articles may contain any other provisions as are consistent with law. The articles shall be subscribed by one or more of the organizers of the proposed trust company and shall be acknowledged by them. The full amount of the capital required by §51A-6A-19 shall be subscribed before the articles are filed.
Source:
SL 1995, ch 268, §5; SL 2008, ch 258, §5; SL 2011, ch 212, §38; SL 2016, ch 231, §3; SL 2017, ch 204, §3.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-7.1 - Corporation laws applied.

51A-6A-7.1. Corporation laws applied.
All provisions of law applicable to a corporation and a limited liability company are applicable to a trust company, except where inconsistent with this chapter and the provisions of this title, in which case this chapter and the provisions of this title govern.
Source:
SL 2021, ch 203, § 29.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-8 - Amendment of articles--Extension of existence.

51A-6A-8. Amendment of articles--Extension of existence.
Prior to the expiration of the period for which it was incorporated or organized a trust company may, with the approval of at least a majority of the capital stock or ownership units of such trust company, amend its articles to extend its existence for an additional period, which may be perpetual.
Source:
SL 1995, ch 268, §5A; SL 2011, ch 212, §39.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-9 - Starting date of trust company existence--Commencement of business.

51A-6A-9. Starting date of trust company existence--Commencement of business.
The existence of any trust company shall date from the filing of its articles from which time it shall have and may exercise the incidental powers conferred by law upon corporations or limited liability companies, as applicable. However, no trust company may transact any business except the election of officers, the taking and approving of their official bonds, the receipts of payment upon stock subscriptions, and other business incidental to its organization, until it has secured the required approval and the authorization of the director to commence business.
Source:
SL 1995, ch 268, §6; SL 2008, ch 258, §6.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-10 - Statement of payment of capital--Certificate of organization.

51A-6A-10. Statement of payment of capital--Certificate of organization.
When the capital of any trust company is paid in, the president or cashier shall transmit to the director a verified statement showing the names and addresses of all owners, the amount of stock or units each subscribed, and the amount paid in by each. The director shall review each trust company as to the amount of money paid in for capital and surplus, by whom the amounts were paid, the amount of capital stock or units owned in good faith by each owner, and whether the trust company has complied with the law. If the director determines that the trust company has been organized as required by law, has complied with the law, and has secured the required approval, the director shall issue a certificate stating that the trust company has been organized and its capital paid in as required by law, and that the trust company is authorized to transact trust business.
Source:
SL 1995, ch 268, §7; SL 2008, ch 258, §7; SL 2019, ch 205, §1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-11 - Authority to transact business required--Violation as misdemeanor.

51A-6A-11. Authority to transact business required--Violation as misdemeanor.
No individual, firm, or corporation may advertise, publish, or otherwise promulgate that they are engaged in the trust company business, or transact trust company business, without having first obtained authority from the director. Any individual or member of any firm or officer of any corporation violating this section shall be guilty of an unclassified misdemeanor, and upon conviction shall be punished by a fine not exceeding five thousand dollars.
Source:
SL 1995, ch 268, §8.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-11.1 - Public trust companies to maintain office and perform trust administration in South Dakota.

51A-6A-11.1. Public trust companies to maintain office and perform trust administration in South Dakota.
A public trust company shall:
(1)Maintain office space in South Dakota for trust company business and for the storage of, and access to, trust company records required by §51A-6A-30;
(2)Hold no less than two quarterly governing board meetings with a majority physically present in South Dakota each calendar year;
(3)Employ, engage, or contract with at least one trust officer or key employee to provide services for the trust company in South Dakota related to the powers of the company in §51A-6A-29 and to facilitate the examinations required by §51A-6A-31; and
(4)Perform trust administration in South Dakota.
The commission may promulgate rules, pursuant to chapter 1-26, to establish additional guidelines regarding what constitutes trust administration in South Dakota for purposes of this section.
Source:
SL 2010, ch 232, §18; SL 2012, ch 233, §2; SL 2015, ch 240, §3; SL 2016, ch 231, §4.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-11.2 - Office space requirements.

51A-6A-11.2. Office space requirements.
For purposes of §51A-6A-11.1, office space in South Dakota for each public trust company shall:
(1)Be in premises distinct and divided from the office space of any other entity;
(2)Have the name, charter, and certificate of authority of the trust company prominently displayed;
(3)Have access to premises in or adjacent to the office space sufficient to facilitate onsite examinations by the division;
(4)To the extent the trust company maintains hard copies of any documents required to be maintained pursuant to §51A-6A-30, have a secure fireproof file cabinet that contains all such hard copies; and
(5)To the extent the trust company maintains any record electronically, have a secure computer terminal or other secure electronic device that provides access to such records, including account information, as necessary to facilitate an efficient and effective examination.
For public trust companies chartered in South Dakota prior to July 1, 2016, the division shall determine full compliance with the provisions of this section at the first regular examination after June 30, 2018.
Source:
SL 2016, ch 231, §5.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-11.3 - Approval of other office space requirements.

51A-6A-11.3. Approval of other office space requirements.
Upon application by a trust company, the director may approve office space that does not meet the requirements of §51A-6A-11.2 if the director determines the nature and degree of risks presented by the trust company are low based upon a review of the size, nature, and number of accounts administered by the trust company, the structure and business plan of the trust company approved by the division, and the number of employees or persons performing services for the trust company in South Dakota.
If the size, risk profile, or rate of growth of a trust company changes, or if a trust company's office space is insufficient to facilitate onsite examinations by the division, the director may impose additional office space requirements.
Source:
SL 2016, ch 231, §6.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-12 - List of owners--Annual submission to director--Verification of list.

51A-6A-12. List of owners--Annual submission to director--Verification of list.
Every trust company shall keep a full and correct list of names and addresses of all of its owners and the number of shares owned by each. This list of owners shall be kept and maintained in the office where its business is transacted, and during the business hours of the trust company, the list is subject to the inspection of all owners. The president or cashier of any trust company shall submit to the director on or before the thirty-first day of January of each year a list of owners as of the first day of the calendar year. The president or cashier shall verify the correctness of the list under oath.
Source:
SL 1995, ch 268, §9.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-13 - Governing board--Membership--Election--Vacancies.

51A-6A-13. Governing board--Membership--Election--Vacancies.
The business of any trust company shall be managed and controlled by its governing board and includes the authority to provide for bonus payments, in addition to ordinary compensation, for any of its officers and employees. The governing board of a private trust company shall consist of not less than three nor more than twelve members, all of whom shall be elected by the owners of the trust company at any regular annual meeting, with terms not to exceed three years. The governing board of a public trust company shall consist of not less than five nor more than twelve members, all of whom shall be elected by the owners of the trust company at any regular meeting held during each calendar year. If the number of board members elected is less than twelve, the number of board members may be increased so long as the total number does not exceed twelve. If the number is increased, the first additional board members may be elected at a special meeting of the owners. The board members shall be elected and any vacancies filled in the manner as provided in the provisions regarding general corporations or limited liability companies, as applicable. At all times one of the directors shall be a resident of this state and at least one-half of the directors shall be citizens of the United States. Any board member of any trust company who becomes indebted to the trust company on any judgment forfeits the position of board member, and the vacancy shall be filled as provided by law.
Source:
SL 1995, ch 268, §10; SL 1998, ch 282, §32; SL 2006, ch 243, §11; SL 2007, ch 276, §1; SL 2009, ch 252, §1; SL 2011, ch 212, §11; SL 2015, ch 240, §4.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-14 - Officers of governing board--Bond required.

51A-6A-14. Officers of governing board--Bond required.
The governing board may elect a chairperson, a president, one or more vice presidents, a secretary, and a cashier. The office of president and cashier may not be filled by the same person. The officers shall hold their offices for a term not to exceed one year and until their successors are elected and qualified. The governing board shall require all officers and employees having the care or handling of the funds of the trust company to give a good and sufficient bond to be executed by an approved corporate surety authorized to do business in this state. The amount and form of the bond shall be approved by the governing board and the director, and it shall be held by the director. The costs of the bonds shall be paid by the trust company. Any officer who becomes indebted to the trust company on any judgment shall forfeit the office and the governing board shall fill the vacancy.
Source:
SL 1995, ch 268, §11.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-15 - Meetings of governing board--Examination and audit of books and records.

51A-6A-15. Meetings of governing board--Examination and audit of books and records.
The governing board shall hold at least four regular meetings each year, at least one of which shall be held during each calendar quarter. Unless otherwise provided in the trust company's organizational documents, the governing board or an authorized committee may conduct, or permit any member to participate in, a regular or special meeting through the use of any means of communication by which all members participating may simultaneously hear each other during the meeting. A member participating in a meeting by this means is considered present in person at the meeting. The governing board or an auditor selected by them shall make a thorough examination of the books, records, funds, and securities held by the trust company at each of the quarterly meetings. The result of the examination shall be recorded in detail. If the governing board selects an auditor, the auditor's findings shall be reported directly to the governing board. In lieu of the required four quarterly examinations, the governing board may accept one annual audit by a certified public accountant or an independent auditor approved by the director.
The provisions of this section do not alter, amend, or change the requirement of a public trust company to hold no less than two quarterly governing board meetings with a majority physically present in South Dakota each calendar year pursuant to §51A-6A-11.1.
Source:
SL 1995, ch 268, §12; SL 2016, ch 231, §7.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-16 - Oath of board members.

51A-6A-16. Oath of board members.
Each board member shall take and subscribe an oath that the member will administer the affairs of the trust company diligently and honestly and that the member will not knowingly or willfully permit any of the laws relating to trust companies to be violated.
Source:
SL 1995, ch 268, §14.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-19 - Determining capital--Minimum--Purpose of capital--Fidelity bond and liability insurance policy.

51A-6A-19. Determining capital--Minimum--Purpose of capital--Fidelity bond and liability insurance policy.
For purposes of this section, the capital of a trust company is the total of the aggregate par value of its outstanding shares of capital stock or ownership units, its surplus, and its undivided profits. The minimum capital of a trust company is two hundred thousand dollars. The director may require that the trust company have more capital than the amount specified if the director determines that the amount and character of the anticipated business of the trust company and the safety of the customers so require. This chapter recognizes that capital for a trust company serves a different purpose than does capital for a bank. It is not intended that capital requirements for trust companies be judged by the same standards as banks. Basic protection for fiduciary clients of a trust company shall be provided by the purchase of a fidelity bond and a director's and officer's liability insurance policy. The bond and insurance shall be in an amount of not less than one million dollars each. The trust company shall give notice of cancellation or nonrenewal of the bond or insurance policy to the director within ten days of the receipt of cancellation or nonrenewal. Except as may be provided elsewhere in this chapter, no trust company may reduce voluntarily its capital stock or ownership units or surplus below the amount required in this section.
Source:
SL 1995, ch 268, §17; SL 2002, ch 220, §2; SL 2006, ch 243, §2; SL 2008, ch 258, §8; SL 2013, ch 239, §3.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-19.1 - Additional capital requirements--Safety and soundness factors to be considered--Effective date of order--Hearing.

51A-6A-19.1. Additional capital requirements--Safety and soundness factors to be considered--Effective date of order--Hearing.
The director may require additional capital for an existing trust company if the director finds the condition and operations of an existing trust company requires additional capital consistent with the safety and soundness of the trust company. The safety and soundness factors to be considered by the director in the exercise of such discretion include:
(1)The nature and type of business conducted;
(2)The nature and degree of liquidity in assets held in a corporate capacity;
(3)The amount of fiduciary assets under management or administration;
(4)The type of fiduciary assets held and the depository of such assets;
(5)The complexity of fiduciary duties and degree of discretion undertaken;
(6)The competence and experience of management;
(7)The extent and adequacy of internal controls;
(8)The presence or absence of annual unqualified audits by an independent certified public accountant;
(9)The reasonableness of business plans for retaining or acquiring additional capital;
(10)The existence and adequacy of insurance obtained or held by the trust company for the purpose of protecting its clients, beneficiaries, and grantors; and
(11)Any other factor deemed relevant by the director.
The proposed effective date of an order requiring an existing trust company to increase its capital must be stated in the order as on or after the thirty-first day after the date of the proposed order. Unless the trust company requests a hearing before the commission in writing before the effective date of the proposed order, the order becomes effective and is final. Any hearing before the commission shall be held pursuant to chapter 1-26.
Source:
SL 2010, ch 232, §20.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-19.3 - Pledge available to satisfy claims upon liquidation, abandonment of trust powers, or resignation.

51A-6A-19.3. Pledge available to satisfy claims upon liquidation, abandonment of trust powers, or resignation.
Upon liquidation, abandonment of trust powers, or resignation from all duties exercised pursuant to §51A-6A-29, the pledge required by §51A-6A-19. 2 shall be made available for the reasonable satisfaction of claims involving trust company accounts. Any surplus remaining after the satisfaction of all such claims and costs incurred by the division shall be returned to the trust company. Unless the division has reason to believe that claims are forthcoming, the division shall release any pledge no later than twelve months from the date all affected accounts are moved to a successor trustee, custodian, or administrator.
Source:
SL 2013, ch 239, §2.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-20 - Payment of subscriptions--Reduction of common stock.

51A-6A-20. Payment of subscriptions--Reduction of common stock.
All subscriptions to the stock or ownership units shall be paid in cash. If a trust company in corporate form reduces its common stock and issues preferred stock in lieu of the reduction, it may reduce the par value of the common stock in the proportion that the total amount of capital stock is reduced, but when the preferred stock is retired the par value of the common shares shall be restored.
Source:
SL 1995, ch 268, §18; SL 2012, ch 252, §17.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-21 - Transferring stock and ownership units.

51A-6A-21. Transferring stock and ownership units.
The shares of stock and ownership units of any trust company are personal property and shall be transferred on the books of the trust company in such manner as the bylaws or operating regulations of the trust company may direct. No stock or ownership units may be transferred on the books of the trust company when the trust company is in a failing condition, or when its capital is impaired, except upon approval of the director. If a transfer of shares of stock of any trust company, or holding company that owns a majority of the outstanding shares of a trust company, occurs which results through direct or indirect ownership by a stockholder or an affiliated group of stockholders of ten percent or more of the outstanding stock of the trust company, or holding company that owns a majority of the outstanding shares of a trust company, and if additional shares of stock of the trust company are transferred to such stockholders, affiliated group of stockholders, or holding company, the president or other chief executive officer of the trust company shall report the transfer to the director within ten days after transfer of the shares of stock on the books of the trust company.
Source:
SL 1995, ch 268, §19; SL 2013, ch 239, §4.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-22 - Increasing capital stock or ownership units.

51A-6A-22. Increasing capital stock or ownership units.
The capital stock or ownership units of any trust company may be increased. The president and cashier shall forward a verified statement to the director showing the amount of the increase, the names and addresses of the subscribers, the amount subscribed by each, and that the same had been paid in full to the trust company. The date and amount of the increase also shall be certified to the secretary of state.
Source:
SL 1995, ch 268, §20.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-23 - Registration of capital stock or ownership units.

51A-6A-23. Registration of capital stock or ownership units.
If the director determines that the capital stock of any trust company is impaired, the director shall notify the trust company to restore the capital stock or ownership units within ninety days of receipt of the notice. Within fifteen days of receipt of the notice, the governing board of the trust company shall levy an assessment on the owners sufficient to restore the capital stock or ownership units. The trust company, with its governing board's approval, may reduce its capital stock or ownership units to the extent of the impairment, if such reduction will not reduce the capital below the amount required by this chapter.
Source:
SL 1995, ch 268, §21.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-24 - Issuance and retirement of preferred stock.

51A-6A-24. Issuance and retirement of preferred stock.
Any trust company in corporate form may issue preferred stock of one or more classes in amounts approved by the director. The holders of two-thirds of the common stock of the trust company shall approve the issuance at a meeting held for that purpose. Notice shall be given by registered mail to each stockholder at least five days before the date of the meeting under this section. An issuance of preferred stock is not valid until the par value of all stock so issued is paid in. Preferred stock may be retired only if the trust company is in compliance with the capital requirements under §51A-6A-19 following retirement of the preferred stock and if two-thirds of the holders of common stock of the trust company and the director approve the retirement.
Source:
SL 1995, ch 268, §22; SL 2012, ch 252, §18; SL 2019, ch 205, §3.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-25 - Rights and liability of preferred stockholders--Dividends.

51A-6A-25. Rights and liability of preferred stockholders--Dividends.
The holders of preferred stock are not liable for assessments to restore any impairment in the capital stock of a trust company. The holders of preferred stock are entitled to receive cumulative dividends, have voting and conversion rights, and have control of management, as may be provided in the articles of incorporation and upon the written approval of the director. The preferred stock shall be retired as provided in the articles of incorporation.
No dividends may be declared or paid on common stock until all cumulative dividends, if any, on the preferred stock have been paid, and if the trust company is dissolved or placed in liquidation, no payments may be made to the holders of common stock until the holders of the preferred stock first have been paid in full for any sums due upon the preferred stock.
Source:
SL 1995, ch 268, §23.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-26 - Issuance of convertible or nonconvertible capital notes or debentures.

51A-6A-26. Issuance of convertible or nonconvertible capital notes or debentures.
In accordance with normal business considerations and upon approval of owners owning two-thirds of the voting stock or ownership units of the trust company, the trust company may issue convertible or nonconvertible capital notes or debentures in such amounts pursuant to terms and conditions as approved by the director. However, the principal amount of capital notes or debentures outstanding at any time may not exceed an amount equal to one hundred percent of the trust company's paid-in capital stock or ownership units plus fifty percent of the amount of its unimpaired surplus fund. Capital notes or debentures that are by their terms expressly subordinated to the prior payment in full of all liabilities of the trust company are part of the unimpaired capital funds of the trust company.
Source:
SL 1995, ch 268, §24; SL 2015, ch 239, §6.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-27 - Dividends not permitted from required capital.

51A-6A-27. Dividends not permitted from required capital.
A trust company may not permit to be withdrawn, in the form of dividends, any portion of its capital required under §§51A-6A-19 and 51A-6A-19.1.
Source:
SL 1995, ch 268, §25; SL 2015, ch 240, §6; SL 2019, ch 205, §4.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-28 - Dividends from undivided profits or surplus.

51A-6A-28. Dividends from undivided profits or surplus.
The governing board of any trust company may declare dividends from undivided profits or surplus, if the trust company is in compliance with the capital requirements of §§51A-6A-19 and 51A-6A-19.1 following payment of the dividend and if the director approves any dividend to be paid from surplus.
Source:
SL 1995, ch 268, §26; SL 2019, ch 205, §5.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-29 - Powers of trust company.

51A-6A-29. Powers of trust company.
A trust company may exercise the following powers necessary or incidental to carrying on a trust company business, including:
(1)Act as agent, custodian, or attorney-in-fact for any person, and, in such capacity, take and hold property on deposit for safekeeping and act as general or special agent or attorney-in-fact in the acquisition, management, sale, assignment, transfer, encumbrance, conveyance, or other disposition of property, in the collection or disbursement of income from or principal of property, and generally in any matter incidental to any of the foregoing;
(2)Act as registrar or transfer agent for any corporation, partnership, association, limited liability company, municipality, state, or public authority, and in such capacity, receive and disburse money, transfer, register, and countersign certificates of stock, bonds, or other evidences of indebtedness or securities, and perform any acts which may be incidental thereto;
(3)Act as trustee or fiduciary under any mortgage or bond issued by a person;
(4)Act as trustee or fiduciary under any trust established by a person;
(5)Act as fiduciary, assignee for the benefit of creditors, receiver, or trustee under or pursuant to the order or direction of any court or public official of competent jurisdiction;
(6)Act as fiduciary, guardian, conservator, assignee, or receiver of the estate of any person and as executor of the last will and testament or administrator, fiduciary, or personal representative of the estate of any deceased person when appointed by a court or public official of competent jurisdiction;
(7)Establish and maintain common trust funds or collective investment funds pursuant to the provisions of chapter 55-6; or
(8)Act in any fiduciary capacity and perform any act as a fiduciary which a South Dakota bank with trust powers may perform in the exercise of those trust powers.
Source:
SL 1995, ch 268, §27; SL 2011, ch 212, §21; SL 2014, ch 226, §1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-29.1 - Permissible business of trust companies.

51A-6A-29.1. Permissible business of trust companies.
A trust company may only carry on a trust company business, as provided in § 51A-6A-29, and such business as is incidental thereto.
Source:
SL 2021, ch 203, § 30.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-30 - Retention of records--Promulgation of rules--Reproduction of records--Duty of confidentiality.

51A-6A-30. Retention of records--Promulgation of rules--Reproduction of records--Duty of confidentiality.
A trust company shall retain its business records in accordance with the provisions of this section. Each trust company shall retain permanently the minute books of meetings of its owners and governing board, its capital stock and ownership unit ledger and capital stock or ownership unit certificate ledger or stubs, its general ledger or the record kept in lieu of a general ledger, its daily statements of condition, and all records which the director shall, in accordance with the provisions of this section, require to be retained permanently. All other records of a trust company shall be retained for such periods as the commission prescribes. The commission shall promulgate rules pursuant to chapter 1-26 classifying all records kept by trust companies, prescribing the period for which records of each class shall be retained, and requiring a record of destruction of records as the commission deems advisable. The periods may be permanent or for a term of years. Before adoption, amendment, or revocation of the rules the commission shall consider:
(1)Actions and administrative proceedings in which the production of trust company records might be necessary or desirable;
(2)State and federal statutes of limitation applicable to such actions or proceedings;
(3)The availability of information contained in trust company records from other sources; and
(4)Any other matters as the commission considers pertinent to the interest of customers and owners of trust companies and of the people of this state having the records available.
Any trust company may destroy any record which has been retained for the period prescribed, in accordance with the terms of this section for retention of records of its class, and is, after it has destroyed a record, under no duty to produce the record.
Instead of retention of the original records, any trust company may cause any of its records in its custody, including those held by it as a fiduciary, to be photographed or otherwise reproduced to permanent form. Any photograph or reproduction has the same force and effect as the original and may be admitted in evidence equally with the original.
Any trust company may cause any transactions, information, and data occurring in the regular course of its operations to be recorded and maintained by electronic means. When the electronic records of the transactions, information, and data are converted to writing, the writings shall constitute the original records of the transactions, information, and data and have the force and effect of the original records.
Nothing in this section may be construed to affect any duty of a trust company to preserve the confidentiality of its records.
Source:
SL 1995, ch 268, §28.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-31 - Periodic examination of trust company--Report of examination--Cooperative, coordinating and information-sharing agreements among agencies.

51A-6A-31. Periodic examination of trust company--Report of examination--Cooperative, coordinating and information-sharing agreements among agencies.
The director shall examine each trust company at least once every thirty-six months or more frequently if the director considers it necessary to make a full and careful examination and inquiry into the condition of the affairs of the trust company. For purposes of the examination, the director may administer oaths and examine under oath the board members, officers, employees, and agents of any trust company. The examination shall be reduced to writing by the person making it, and the person's reports shall contain a full, true, and careful statement of the condition of the trust company. The director, in lieu of making a direct examination and inquiry at the trust company office, may examine the trust company in whole or in part by examining the trust company records or documents off-site. For an examination conducted wholly or partially off-site, the director may require production of any records or documents of the trust company at the director's office. The director shall provide a copy of the written examination report to the governing board of the trust company. Neither the director nor any employee of the Division of Banking may have any ownership interest in a trust company.
The director may examine an out-of-state trust institution's trust service offices either on- or off-site to determine whether such offices are being operated in compliance with the laws of this state and in accordance with safe and sound practices.
The director may enter into cooperative, coordinating, and information-sharing agreements with any other supervisory agency or any organization affiliated with or representing one or more supervisory agencies with respect to the periodic examination or other supervision of any trust company or out-of-state trust institution, and the director may accept such agency's or organization's report of examination or investigation in lieu of conducting an examination or investigation.
Source:
SL 1995, ch 268, §29; SL 2006, ch 243, §1.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-32 - Examination of fiduciary affairs of officers or employees--Examination of affiliated companies or corporations.

51A-6A-32. Examination of fiduciary affairs of officers or employees--Examination of affiliated companies or corporations.
If upon the examination of any trust company, the director considers it necessary, the director may examine the fiduciary affairs of any officer or employee of any trust company; and upon similar determination, the director may examine any investment company or holding company or corporation that is affiliated with any trust company as to matters relevant to the safety and soundness of the trust company. Determinations by the director pursuant to this section are subject to review by the commission pursuant to chapter 1-26.
Source:
SL 1995, ch 268, §30; SL 2014, ch 226, §3.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-33 - Examination expenses paid by trust companies--Fees.

51A-6A-33. Examination expenses paid by trust companies--Fees.
The expense of every examination, together with the expense of administering the applicable laws, including salaries, travel expenses, supplies, and equipment, shall be paid by the trust companies of the state. A fee shall be imposed upon a trust company consistent with §51A-2-36.
Source:
SL 1995, ch 268, §31.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-34 - Annual report of trust company to director--Form of report--Request for additional reports.

51A-6A-34. Annual report of trust company to director--Form of report--Request for additional reports.
Each trust company shall make at least one report to the director during each year, at a time determined by the director. The director may require additional reports from each trust company if the director considers it advisable. The form of all the reports shall be prescribed by the director. If the director considers it necessary, the director may call upon any trust company for a report of its condition upon any given day. A copy of each request made by the director for a statement from all trust companies doing business under this chapter shall be mailed to each trust company. The copy of the request shall be considered to be legal notice to a trust company.
Source:
SL 1995, ch 268, §32.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-35 - Authority of trust company revoked upon obstruction or interference with, or refusal to submit to, examination of director.

51A-6A-35. Authority of trust company revoked upon obstruction or interference with, or refusal to submit to, examination of director.
If any officer of any trust company refuses to submit the books, records, papers, and instruments of the trust company to the examination and inspection of the director or in any manner obstruct or interfere with the examination and investigation of the trust company or refuse to be examined on oath concerning any of the affairs of the trust company, the director may revoke the authority of the trust company to transact business, and with the concurrence of the attorney general, may institute proceedings for the appointment of a receiver for the trust company.
Source:
SL 1995, ch 268, §33.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-37 - Revocation of franchise for failure to comply with lawful requirements.

51A-6A-37. Revocation of franchise for failure to comply with lawful requirements.
Any trust company which refuses or neglects to comply with any requirement lawfully made upon it by the director for a period of ninety days after demand in writing is made forfeits its franchise, and the director shall thereupon revoke its authority to transact business. The director shall give notice of the revocation to the president or other managing officer of the trust company. The attorney general, upon the request of the director, then shall begin action for the appointment of a receiver for the trust company and to dissolve the trust company.
Source:
SL 1995, ch 268, §35.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-38 - Hearing on revocation of trust authority.

51A-6A-38. Hearing on revocation of trust authority.
A trust company subject to revocation of trust authority shall be afforded the right to a hearing in accordance with the provisions of chapter 1-26. Any revocation of authority to transact trust business is subject to review in accordance with chapter 1-26.
Source:
SL 1995, ch 268, §36.
2023 South Dakota Codified Laws › Title 51A - Banks and Banking › Chapter 06A - Creation Of Trust Companies › Section 51A-6A-39 - Confidentiality of information generated by examination--Disclosure--Hearing.

51A-6A-39. Confidentiality of information generated by examination--Disclosure--Hearing.
All information the director generates in making an investigation or examination of a state trust company is confidential. All confidential information shall remain the property of the division and shall be furnished to the trust company for its confidential use. Under no circumstances may a trust company disclose a report or any supporting documentation to anyone, other than directors and officers of the trust company or anyone acting in a fiduciary capacity for the trust company, without written permission from the director.
The director shall give ten days' prior written notice of intent to disclose confidential information to the affected trust company. Any trust company which receives a notice may object to the disclosure of the confidential information and shall be afforded the right to a hearing in accordance with the provisions of chapter 1-26. If a trust company requests a hearing, the director may not reveal confidential information prior to the conclusion of the hearing and a ruling. Disclosure of confidential information shall be made only to formal regulatory bodies which clearly have a need for the confidential information. Prior to dissemination of any confidential information, the director shall require a written agreement not to reveal the confidential information by the party receiving the confidential information. In no event may the director disclose confidential information to the general public, any competitor, or any potential competitor of a trust company.
The submission of any information to the division in the course of any investigation or examination may not be construed as waiving, destroying, or otherwise affecting any privilege any person may claim with respect to the information under South Dakota law or federal law.
Source:
SL 1995, ch 268, §37; SL 2008, ch 258, §9; SL 2012, ch 233, §3.