reglab/statecodes huggingface dataset:
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:26 - Bank borrowings

Current through Register Vol. 51, page 10, July 15, 2024
A bank may borrow money and pledge assets as security to meet demand for loans or withdrawal demands by depositors.
General Authority:
SDCL  51A-4-13.
Law Implemented:
SDCL  51A-4-13.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:05 - Retention of records › Section 20:07:05:30 - Records retention

Current through Register Vol. 51, page 10, July 15, 2024
Banks shall retain records as normal business practices dictate. Numerical documents shall be retained in numerical order. A bank shall not destroy any records necessary for subsequent examinations of the bank.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-13-5.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:05 - Retention of records › Section 20:07:05:31 - Retention methods

Current through Register Vol. 51, page 10, July 15, 2024
Records may be microfilmed or maintained in the form of electronically encoded data for retention purposes. Any records required to be maintained may be made available on the basis of computer printed reproduction, video display, or other medium that is readily convertible by the division into legible, tangible documents.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-13-5.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:05 - Retention of records › Section 20:07:05:32 - Records retention for trust companies

Current through Register Vol. 51, page 10, July 15, 2024
Any trust company record, other than those records required to be kept permanently by SDCL  51A-6A-30, shall be retained for a period of five years from the date of transaction.
In addition to the records required to be retained by SDCL  51A-6A-30, any committee meeting minutes and any internal or external audit reports shall be retained permanently by a trust company. For client relationships, whether active or dormant, including account opening and due diligence; annual account reviews; account transactions; and, relevant correspondence sufficient to properly monitor the accounts, shall be retained for at least five years. Any trust company policies, procedures, and operating manuals shall be kept current and there is no requirement to maintain outdated versions.
Any record required to be kept or retained by this section and SDCL  51A-6A-30 shall be easily accessible to the division at the trust company's location in this state either in hard copy or electronic format.
General Authority:
SDCL  51A-6A-30.
Law Implemented:
SDCL  51A-6A-30.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:06 - Bank examinations › Section 20:07:06:01 - Examination fee schedule

Current through Register Vol. 51, page 10, July 15, 2024
State-chartered banks shall pay a semiannual fee for examinations on total assets reported on the report of condition for June and December at the following rates:
(1) Five and one-half cents per $1,000 of assets up to and including $100,000,000; plus
(2) Five and one-quarter cents per $1,000 of assets over $100,000,000 up to and including $300,000,000; plus
(3) Five cents per $1,000 of assets over $300,000,000 up to and including $500,000,000; plus
(4) Four and three-quarters cents per $1,000 of all assets over $500,000,000 up to and including $1,000,000,000; plus
(5) One cent per $1,000 of assets over $1,000,000,000.
Non-depository banks shall be assessed an additional semiannual fee of $500.
The division shall maintain on its website a fee calculator to be used for the purpose of calculating the semi-annual examination fee owed by each bank. The formulas used to operate the fee calculator shall be available upon request.
General Authority:
SDCL  51A-2-13,  51A-2-36.
Law Implemented:
SDCL  51A-2-36.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:06 - Bank examinations › Section 20:07:06:01.01 - Reduced examination fee schedule

Current through Register Vol. 51, page 10, July 15, 2024
Notwithstanding the provisions of $ 20:07:06:01 and 20:07:06:03, state-chartered banks will not be required to pay a semiannual fee for examinations for the June 2015 assessment period. This section is repealed on September 1, 2015.
General Authority:
SDCL  51A-2-13.  51A-2-36.
Law Implemented:
SDCL 51A-2-36.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:06 - Bank examinations › Section 20:07:06:01.02 - Reduced examination fee schedule

Current through Register Vol. 51, page 10, July 15, 2024
Notwithstanding the provisions of §§
									20:07:06:01  and 20:07:06:03, a state-chartered bank is not required to pay a semiannual fee for examinations for the June 2021 assessment period.
General Authority:
SDCL  51A-2-13,  51A-2-36.
Law Implemented:
SDCL  51A-2-36.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:06 - Bank examinations › Section 20:07:06:02 - Remittance

Current through Register Vol. 51, page 10, July 15, 2024
The semiannual fees shall be remitted by electronic transfer after notice from the Division. The Division will provide notice to each state-chartered bank 30 to 75 days after the June 30 and December 31 reports of condition and income dates.
General Authority:
SDCL  51A-2-13,  51A-2-36.
Law Implemented:
SDCL  51A-2-36.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:06 - Bank examinations › Section 20:07:06:03 - Additional examination and supervision fees

Current through Register Vol. 51, page 10, July 15, 2024
Any bank engaged in non-traditional banking services, including credit cards, rent-a-bin agreements, payday lending, or loan syndication, shall pay an additional semiannual fee of one cent per $1,000 on all assets, but not less than $500. Any bank operating under an enforcement action shall pay an additional semiannual fee of one cent per $1,000 of all assets, but not less than $500.
Any bank requiring more than one examination in any calendar year shall pay the actual costs incurred by the division including salaries, travel expenses, and supplies.
A bank has the right to a hearing before the commission for a review of an assessment of additional fees under this section.
General Authority:
SDCL  51A-2-13,  51A-2-36.
Law Implemented:
SDCL  51A-2-36.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:08 - Retirement accounts › Section 20:07:08:02 - State-chartered banks may act as trustee or custodian pursuant to SDCL 51A-5-2

Current through Register Vol. 51, page 10, July 15, 2024
A state-chartered bank not presently authorized by its articles of incorporation and the commission to exercise trust powers may, without obtaining the prior approval of the commission, act as trustee or custodian pursuant to SDCL  51A-5-2.
General Authority:
SDCL  51A-2-13,  51A-5-2.
Law Implemented:
SDCL  51A-5-2.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:10 - Fees, applications, and approvals › Section 20:07:10:01 - Certified copies fee

Current through Register Vol. 51, page 10, July 15, 2024
The director may furnish certified copies of any record or paper filed in the office of the director for a fee of 50 cents per page, paid in advance.
General Authority:
SDCL  51A-2-13,  51A-2-31.
Law Implemented:
SDCL  51A-2-31.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:10 - Fees, applications, and approvals › Section 20:07:10:02 - Application fees

Current through Register Vol. 51, page 10, July 15, 2024
Applicants shall pay the following application fees:
(1) With an application to move a main office or branch bank, $1,000;
(2) With an application to establish a new bank, $7,500;
(3) With an application to establish a branch bank, mobile branch bank, loan production office, or detached drive-in facility, $1,000;
(4) With an application for the change in control of a bank or to merge banks, $2,500
General Authority:
SDCL  51A-2-13,  51A-3-7.
Law Implemented:
SDCL  51A-1-2(19),  51A-2-16,  51A-3-7,  51A-3-25.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:10 - Fees, applications, and approvals › Section 20:07:10:03 - Application form required

Current through Register Vol. 51, page 10, July 15, 2024
An application shall be filed on the forms prescribed by the director and be accompanied by a resolution of the bank or trust company's board of directors or board of managers to authorize the application and appropriate fee. An application for a new bank or trust company charter need not include a resolution of the board of directors or board of managers. The director shall make all application forms available on the divisions website and provide a list of forms upon request. An applicant shall file an electronic copy of any application form and any attachments.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-2-16,  51A-3-7,  51A-3-15,  51A-6A-4.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:10 - Fees, applications, and approvals › Section 20:07:10:05 - Conditions of approval

Current through Register Vol. 51, page 10, July 15, 2024
The director shall condition the approval of new banks, branch banks, mobile branch banks, bank mergers, detached drive-in facilities, and moving an office on the requirements that prior to the acceptance of any deposits by a bank it must possess federal deposit insurance corporation insurance of accounts or a similar insurance approved by the director and it must have the approval of the bank's application by the federal deposit insurance corporation or the appropriate federal reserve bank. Banks not wishing to accept deposits need not obtain deposit insurance, but in no case may such banks accept deposits without complying with the provisions of this section.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-2-16,  51A-3-11,  51A-4-8.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:10 - Fees, applications, and approvals › Section 20:07:10:06 - Minimum capital requirement for a new bank

Current through Register Vol. 51, page 10, July 15, 2024
The minimum total capital that will be approved for a newly organized bank is $600,000. The commission may require additional capital if the commission projects that the total capital will not equal or exceed eight percent of the total assets of the bank at the end of three years of operation.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-3-4.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:10 - Fees, applications, and approvals › Section 20:07:10:06.01 - Exceptions to capital requirements

Current through Register Vol. 51, page 10, July 15, 2024
The commission may exempt from capital requirements those newly organized banks created pursuant to an interim merger transaction and those created on an emergency basis.
General Authority:
SDCL  51A-2-13,  51A-2-14.
Law Implemented:
SDCL  51A-3-4,  51A-14-6.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:10 - Fees, applications, and approvals › Section 20:07:10:07 - Capital requirements for branch banks

Current through Register Vol. 51, page 10, July 15, 2024
The minimum total capital required for operating branch banks is eight percent of the deposits of the entire bank. The director may not approve an application to establish a branch bank unless the bank's total capital is at least eight percent of the total projected deposits of the entire bank at the end of three years' operation of the proposed branch bank. The approval shall also require the bank to maintain total capital equal to or greater than eight percent of deposits.
The director shall consider as a separate category the establishment of branch banks by a purchase of assets and assumption of liabilities of an existing branch bank or bank. In such cases, the director shall consider the current financial condition of the acquiring bank. The director may authorize the establishment of such a branch bank if the acquiring bank's total capital after the acquisition of the branch will be not less than six percent of the total assets of the entire resulting bank.
General Authority:
SDCL  51A-2-13,  51A-7-3.
Law Implemented:
SDCL  51A-3-8,  51A-7-3.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:12 - Definitions › Section 20:07:12:03 - Total capital defined - Primary and secondary capital

Current through Register Vol. 51, page 10, July 15, 2024
As used in this article the term, total capital, means the sum of primary and secondary capital.
The term, primary capital, means the sum of common stock, perpetual preferred stock, capital surplus, undivided profits, capital reserves, mandatory convertible debt (to the extent of 20 percent of primary capital exclusive of such debt), the pro rata share in certain consolidated subsidiaries, and the allowance for loan and lease losses minus those assets classified loss that are subject to charge-off.
The term, secondary capital, means the sum of mandatory convertible debt that is not included in primary capital, limited life preferred stock and subordinated notes and debentures with a weighted average principal maturity later than seven years from the date of issuance. Secondary capital may not be more than 50 percent of primary capital.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-3-4,  51A-7-3.
Investment in subsidiaries and bank capital, §
											20:07:16:08.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:12 - Definitions › Section 20:07:12:04 - Impaired capital defined

Current through Register Vol. 51, page 10, July 15, 2024
A bank's capital is considered impaired when its total capital as defined by §
									20:07:12:03  is four percent or less of the bank's total assets.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-2-13,  51A-15-11(1).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:14 - Loan production offices › Section 20:07:14:01 - Restrictions

Current through Register Vol. 51, page 10, July 15, 2024
A loan production office may not receive deposits in any form. All disbursements of loan proceeds must originate at the main office or a branch of the bank.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-1-2(13),  51A-2-13.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:15 - Suspension and liquidation › Section 20:07:15:01 - Emergency charters

Current through Register Vol. 51, page 10, July 15, 2024
The banking commission may, without further notice or hearing, grant a charter or branch authorization under the following circumstances:
(1) Pursuant to SDCL  51A-15-18, the director has appointed the federal deposit insurance corporation as receiver for a bank of which the director has taken possession;
(2) The federal deposit insurance corporation sells the bank to another bank that purchases the assets and assumes the liabilities of the failed bank; and
(3) A charter or branch authorization is necessary for the assuming bank because of the purchase and assumption.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-2-13,  51A-14-6,  51A-15-18,  51A-15-19.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:16 - Bank subsidiaries › Section 20:07:16:01 - Bank subsidiary defined

Current through Register Vol. 51, page 10, July 15, 2024
A bank subsidiary of a state-chartered bank is any company 25 percent or more of whose voting shares is directly or indirectly owned or controlled by the bank or is held by it with power to vote. Shares not beneficially owned by the bank but held of record by a bank trust department are not considered owned or controlled by the bank.
General Authority:
SDCL  51A-2-13 to  51A-2-15.
Law Implemented:
SDCL  51A-4-1.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:16 - Bank subsidiaries › Section 20:07:16:02 - Exemption

Current through Register Vol. 51, page 10, July 15, 2024
Any subsidiary of a bank formed for the sole purpose of holding, receiving, or operating real or personal property repossessed by a bank through foreclosure proceedings or other proceedings in lieu of debts previously contracted in the ordinary course of the bank's business is exempt from the requirements of this chapter.
General Authority:
SDCL  51A-2-13 to  51A-2-15.
Law Implemented:
SDCL  51A-4-1.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:16 - Bank subsidiaries › Section 20:07:16:03 - Examination and supervision

Current through Register Vol. 51, page 10, July 15, 2024
Any subsidiaries of banks as defined in §
									20:07:16:01  are subject to examination and supervision by the division to the same extent and in the same manner as state-chartered banks.
General Authority:
SDCL  51A-2-13 to  51A-2-15.
Law Implemented:
SDCL  51A-2-18.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:16 - Bank subsidiaries › Section 20:07:16:04 - Conduct and practices

Current through Register Vol. 51, page 10, July 15, 2024
A bank subsidiary as defined in §
									20:07:16:01  shall at all times conduct its business and operations in a safe and sound manner, consistent with prudent business practices. A bank subsidiary shall also meet the following requirements:
(1) The subsidiary shall conduct business pursuant to independent policies and procedures designed to make known to the public that the subsidiary exists as an organization separate from the parent bank;
(2) The subsidiary shall maintain separate accounting procedures and corporate records that are open to examination by the division;
(3) The subsidiary shall observe separate corporate formalities.
General Authority:
SDCL  51A-2-13 to  51A-2-15.
Law Implemented:
SDCL  51A-4-1.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:16 - Bank subsidiaries › Section 20:07:16:05 - Loans to subsidiaries

Current through Register Vol. 51, page 10, July 15, 2024
Loans to a subsidiary made in the normal course of business shall not be construed as a direct investment in that subsidiary. Maximum loan limitations for individual borrowers provided in SDCL  51A-12-2 apply to subsidiaries of the bank in aggregate. Any bank that exceeds loan limits to its subsidiaries in the aggregate amount must give notice to the division and receive written approval.
General Authority:
SDCL  51A-2-13 to  51A-2-15.
Law Implemented:
SDCL  51A-12-2,  51A-12-7,  51A-12-8.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:16 - Bank subsidiaries › Section 20:07:16:06 - When prior approval required

Current through Register Vol. 51, page 10, July 15, 2024
A bank may acquire, make an investment in, or organize a bank subsidiary without prior application to or the consent of the division. A bank acquiring, making an investment in, or organizing a bank subsidiary shall notify the division in writing of such action at least 10 business days prior to the first operation of the subsidiary.
General Authority:
SDCL  51A-2-13 to  51A-2-15.
Law Implemented:
SDCL  51A-2-25,  51A-4-1.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:16 - Bank subsidiaries › Section 20:07:16:07 - Definition of special bank subsidiary

Current through Register Vol. 51, page 10, July 15, 2024
A special bank subsidiary is any subsidiary of a bank which engages in one or more of the following businesses: insurance underwriting, real estate development, or acting as a surety or guarantor.
General Authority:
SDCL  51A-2-13 to  51A-2-15.
Law Implemented:
SDCL 51A-2-40,  51A-4-4.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:16 - Bank subsidiaries › Section 20:07:16:08 - Investment in subsidiaries and bank capital

Current through Register Vol. 51, page 10, July 15, 2024
For purpose of capital calculations, primary capital of a bank includes the bank's pro rata share of the shareholder's equity of all bank subsidiaries except those bank subsidiaries which are special bank subsidiaries. Banks shall not count as primary capital any investment in special bank subsidiaries.
General Authority:
SDCL  51A-2-13 to  51A-2-15.
Law Implemented:
SDCL  51A-4-1.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:16 - Bank subsidiaries › Section 20:07:16:09 - Investment in special bank subsidiaries

Current through Register Vol. 51, page 10, July 15, 2024
No state-chartered bank may invest more than 10 percent of its total capital in any one special bank subsidiary or more than 20 percent of its total capital in all special bank subsidiaries without the written permission of the director.
General Authority:
SDCL  51A-2-13 to  51A-2-15.
Law Implemented:
SDCL  51A-4-1.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:16 - Bank subsidiaries › Section 20:07:16:10 - Requirement of special bank subsidiaries

Current through Register Vol. 51, page 10, July 15, 2024
A special bank subsidiary must meet the following requirements:
(1) The subsidiary is adequately capitalized, as determined by the director;
(2) The subsidiary is physically separate and distinct in its operations from the operations of the parent bank;
(3) Physical separation is achieved at a minimum by separate offices clearly designated as belonging to the subsidiary, access to which is through a separate entrance from that used for the parent bank, except that the parent bank and the subsidiary's offices may be reached through common outer entry;
(4) The subsidiary does not share a common name or logo with the parent bank;
(5) The subsidiary conducts business pursuant to independent policies and procedures designed to make known to the public that the subsidiary exists as an organization separate from the parent bank;
(6) The subsidiary maintains separate accounting procedures and corporate records that are open to examination by the division;
(7) The subsidiary observes separate corporate formalities;
(8) The subsidiary retains separate employees who are not employees of the parent bank and are compensated by the subsidiary;
(9) The subsidiary shares not more than one common officer with the parent bank;
(10) A majority of the subsidiary's board of directors is composed of persons who are neither directors nor officers of the parent bank; and
(11) Application for operation of the subsidiary is approved by the director.
General Authority:
SDCL  51A-2-13 to  51A-2-15.
Law Implemented:
SDCL  51A-4-1,  51A-4-4.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:18 - Purchase of life insurance › Section 20:07:18:01 - Key person defined

Current through Register Vol. 51, page 10, July 15, 2024
A key person is an executive officer or member of the board of directors determined by the board of directors to be essential to the continued sound operation of the bank based on board review of the person's experience, education, and skills.
General Authority:
SDCL  51A-2-13,  51A-4-42.
Law Implemented:
SDCL  51A-4-42.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:18 - Purchase of life insurance › Section 20:07:18:02 - Authority to purchase life insurance

Current through Register Vol. 51, page 10, July 15, 2024
Banks may purchase and hold an interest in cash value life insurance policies on the life of its key persons and borrowers and may purchase cash value life insurance in connection with benefit plans on employees, officers, and directors, subject to the limitations in this chapter. The bank may not purchase cash value life insurance if the insurable interest is primarily based on a key person's status as a shareholder of the bank or bank holding company. Funding for the life insurance premium payment of an employee, officer, or director as a part of a benefit plan may be split jointly between the bank and the employee, officer, or director. Banks may purchase individual or group life insurance in connection with deferred compensation agreements entered into with its officers, employees, and directors.
General Authority:
SDCL  51A-2-13,  51A-4-42.
Law Implemented:
SDCL  51A-4-42.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:18 - Purchase of life insurance › Section 20:07:18:03 - Limitations on purchase of life insurance on key person

Current through Register Vol. 51, page 10, July 15, 2024
The purchase of cash value life insurance on a key person by a bank is subject to the following limitations:
(1) A bank may not purchase life insurance policies for the bank's own account as an investment;
(2) A bank's purchase of a life insurance policy underwritten by one company on a key person may not exceed 25 percent of the bank's capital stock and surplus as measured by the policy's cash surrender value at the time of purchase;
(3) A bank may not commit an amount toward the purchase of life insurance policies, as measured by the cash surrender value at the time of purchase, that is more than 25 percent of the bank's capital stock, surplus, and undivided profits;
(4) A bank may not purchase life insurance policies for estate planning purposes except in connection with a compensation package;
(5) A bank's authority to hold life insurance on a key person ceases when the key person is no longer employed by the bank or no longer meets the definition of a key person.
General Authority:
SDCL  51A-2-13,  51A-4-42.
Law Implemented:
SDCL  51A-4-42.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:18 - Purchase of life insurance › Section 20:07:18:04 - Limitations on purchase of life insurance on borrowers

Current through Register Vol. 51, page 10, July 15, 2024
The purchase of cash value life insurance on borrowers by a bank is subject to the following limitations:
(1) The face value of the life insurance policy may not exceed the borrower's obligation to the bank; and
(2) A second beneficiary shall be named by the borrower who, if the borrower dies, shall receive any amount in excess of the obligations to the bank because of the repayment of the debt to the bank.
General Authority:
SDCL  51A-2-13,  51A-4-42.
Law Implemented:
SDCL  51A-4-42.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:18 - Purchase of life insurance › Section 20:07:18:05 - Limitations on purchase of life insurance in connection with benefits

Current through Register Vol. 51, page 10, July 15, 2024
In purchasing cash value life insurance in connection with employee compensation and benefit plans and deferred director fees programs, a bank may not hold the policies if no liability exists under the deferred compensation or fee plans unless the purchase is specifically approved by the director.
General Authority:
SDCL  51A-2-13,  51A-4-42.
Law Implemented:
SDCL  51A-4-42.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:18 - Purchase of life insurance › Section 20:07:18:06 - Financial information

Current through Register Vol. 51, page 10, July 15, 2024
Before purchasing a cash value life insurance policy, the board of directors shall evaluate the financial condition and rating, if any, of the insurance company based on current financial information. This evaluation and all subsequent evaluations shall be recorded in the minutes of the board of directors. The board shall continue to evaluate the company's financial condition and rating at least annually.
General Authority:
SDCL  51A-2-13,  51A-4-42.
Law Implemented:
SDCL  51A-4-42.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:18 - Purchase of life insurance › Section 20:07:18:07 - Documentation

Current through Register Vol. 51, page 10, July 15, 2024
In purchasing cash value life insurance for key persons, the bank's board of directors shall document in its minutes the basis for the insurable interest and the basis for the amount of the insurance. The bank's board of directors shall also document in its minutes the basis for determining how that person meets the definition of a key person. In purchasing cash value life insurance in connection with employee compensation and benefit plans and deferred director fees programs, the bank's board of directors must approve and document the plans or programs, including the reasonableness of the plans or programs. The board's basis for its determination shall be documented within its minutes and is subject to review by the division.
General Authority:
SDCL  51A-2-13,  51A-4-42.
Law Implemented:
SDCL  51A-4-42.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:18 - Purchase of life insurance › Section 20:07:18:08 - Waiver

Current through Register Vol. 51, page 10, July 15, 2024
The director may waive any limitation in this chapter, except those in §
									20:07:18:04, for policies purchased before September 5, 1993.
General Authority:
SDCL  51A-2-13,  51A-4-42.
Law Implemented:
SDCL  51A-4-42.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:02 - Licensing fees

Current through Register Vol. 51, page 10, July 15, 2024
The original, non-refundable, license fee for a mortgage lender is seven hundred fifty dollars, the original, non-refundable, license fee for a mortgage broker or mortgage brokerage is five hundred dollars and the original, non-refundable, registration fee for a mortgage loan originator is one hundred fifty dollars.
General Authority:
SDCL  54-14-16.
Law Implemented:
SDCL  54-14-16.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:03 - Renewal fees

Current through Register Vol. 51, page 10, July 15, 2024
The annual renewal fee for a mortgage lender is five hundred dollars, the annual renewal fee for a mortgage broker or mortgage brokerage is three hundred fifty dollars, and the annual renewal fee for a mortgage loan originator is seventy-five dollars. Any licensee or registrant that files for renewal after December first but before January first will pay a late fee, equal to twenty percent of the renewal fee, in addition to the renewal fee.
General Authority:
SDCL  54-14-19.
Law Implemented:
SDCL  54-14-18,  54-14-19.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:03.01 - Nationwide mortgage licensing system and registry fees

Current through Register Vol. 51, page 10, July 15, 2024
An initial set-up fee of one hundred dollars for a company license, twenty dollars for each company branch location, and thirty dollars for each mortgage loan originator shall be paid to the nationwide mortgage licensing system and registry at the time of transition for existing licensees or at the time of application for a new licensee.
An annual processing fee shall be paid to renew each company, company branch, and mortgage loan originator license in the same amounts as described above.
A mortgage loan originator transfer fee of thirty dollars shall be paid each time a company requests to have a mortgage loan originator associated with its license through the nationwide mortgage licensing system and registry. This fee applies to the transfer of employment of a mortgage loan originator who is licensed through the system but employed by a different company.
The fees in this section are in addition to those established in §§
									20:07:19:02  and 20:07:19:03.
General Authority:
SDCL  54-14-31.
Law Implemented:
SDCL  54-14-31.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:04 - Application - Prescribed form and required information

Current through Register Vol. 51, page 10, July 15, 2024
Any application for licensure or registration shall be provided by the division. An applicant must provide the following information as applicable:
(1) The applicant's name, address, date of birth, and social security number or taxpayer identification number as applicable;
(2) The proposed location of the business;
(3) The applicant's form and place of incorporation or organization, if applicable;
(4) The name and address of the sole proprietor; the name and address of each partner, member, officer, director, or any person performing similar functions; or the name and address of any person that owns 10 percent or more of a mortgage entity that is other than a sole proprietorship or partnership;
(5) Evidence of a surety bond;
(6) The qualifications and business history of the applicant and, if applicable, the business history of any partner, member, officer, director, shareholder or any person performing similar functions;
(7) A statement as to whether the applicant or, to the best of the applicant's knowledge, any shareholder, member, partner, officer, director, or any person performing similar functions, or employee of the applicant is currently under investigation, has been convicted of or has pleaded guilty to any felony or criminal offense involving fraud or dishonesty, or has been subject to any adverse civil judgment for any conduct involving fraudulent or dishonest dealing;
(8) The applicant's consent to a state and federal background investigation and two sets of the applicant's fingerprints on forms provided by the division. In the case of an applicant that is a corporation, partnership, limited liability company, association, or trust, each individual who has control of or involvement in the day to day operations of the applicant entity or who is the principal or manager shall consent to a state and federal background investigation and submit two sets of that individual's fingerprints on forms provided by the division. Refusal to consent to a background investigation constitutes grounds for the division to deny licensure to the applicant.
General Authority:
SDCL  54-14-31.
Law Implemented:
SDCL  54-14-14,  54-14-15,  54-14-22,  54-14-24.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:04.01 - Change of control - Application required

Current through Register Vol. 51, page 10, July 15, 2024
If there is a change of control of a licensee, the individual or entity assuming control of the licensee shall file an application with the division, on forms provided by the division and comply with the requirements and qualifications of an applicant as set forth in SDCL chapter 54-14 and the provisions of this chapter. Any change of control application shall be accompanied by a fee equal to the amount required for a renewal application as established in §
									20:07:19:03.
For purposes of this section, change of control is defined as ownership of, or the power to vote, twenty-five percent or more of the outstanding voting shares of a licensee or controlling person.
General Authority:
SDCL  54-14-31.
Law Implemented:
SDCL  54-14-14,  54-14-19.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:05 - Application - Grounds for denial

Current through Register Vol. 51, page 10, July 15, 2024
In addition to the grounds for denial contained in §
									20:07:19:04, the division may deny an application if the applicant has been convicted of forgery, embezzlement, obtaining money under false pretenses, theft, extortion, conspiracy to defraud, or other similar offenses, or of any crime involving moral turpitude in a court of competent jurisdiction in this state, or in any other state, territory, or district of the United States, or in any foreign jurisdiction.
Any applicant aggrieved by a denial issued by the director pursuant to this chapter may, at any time within thirty days from the date of written notice of the denial, request a hearing pursuant to SDCL chapter 1-26. Any request for hearing must be made in writing and postmarked within the thirty-day time period if sent via United States mail or must be received by the division within the thirty-day time period if sent via electronic mail or facsimile.
General Authority:
SDCL  54-14-31.
Law Implemented:
SDCL  54-14-14,  54-14-15.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:07 - Surety bonds

Current through Register Vol. 51, page 10, July 15, 2024
The amount of the surety bond required in SDCL  54-14-24 shall be established according to the following scale based upon the dollar amount of the mortgage loans originated, brokered, or serviced, as the case may be, with respect to property in South Dakota during the preceding calendar year. The numbers preceding the colon represent the dollar amount of the loans and the numbers after the colon represent the amount of bond required.
Less than $ 25,000,000: $25,000
$25,000,001 to $100,000,000: $35,000
Over $100,000,000: $50,000
General Authority:
SDCL  54-14-24.
Law Implemented:
SDCL  54-14-24.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:08 - Records required to be kept - Duration

Current through Register Vol. 51, page 10, July 15, 2024
The following records shall be kept for a period of at least five years, and shall be available for inspection, examination, and copying by the division:
(1) A record of all cash, checks, or other monetary instruments received in connection with each mortgage loan application showing the identity of the payor, date received, amount, and purpose;
(2) A record showing a sequential listing of checks written for each bank account relating to the licensee's business as a mortgage broker or mortgage lender, showing at least the payee, amount, date, and purpose of payment, including identification of the loan to which it relates, if any. The licensee shall reconcile the bank accounts monthly;
(3) A file for each mortgage loan application that contains, as applicable, the applicant's name, date of application, name of person taking the application, HUD-1 Settlement Statement, copies of all agreements or contracts with the applicant, including any commitment and lock-in agreements, copies of any appraisals conducted, and all disclosures required by state and federal law signed by the borrower;
(4) Copies of all contracts, agreements, and escrow instructions to or with any depository;
(5) A record of any contact between the mortgage broker or mortgage loan originator and the borrower relating to the rate, terms, or conditions of the loan; and
(6) A list of all mortgage loan originators, as defined in SDCL 54-14-1(7), along with documentation for each loan originator indicating each state in which the originator works and makes loans.
Any records required by this section may be maintained in the form of electronically encoded data available for examination on the basis of computer printed reproduction, video display, or other medium that is readily convertible by the division into legible, tangible documents.
Any record required by this section shall be prepared in accordance with generally accepted accounting principles, if applicable.
General Authority:
SDCL  54-14-26,  54-14-31.
Law Implemented:
SDCL  54-14-26,  54-14-27.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:09 - Examination of licensees

Current through Register Vol. 51, page 10, July 15, 2024
The division may annually, or as often as the director considers necessary, conduct an examination of business records, accounts, and any other documents required to be kept by §
									20:07:19:08, of any licensee licensed pursuant to SDCL chapter 54-14. The director may charge back to the licensee any cost associated with an on-site examination. The director may waive an on-site examination and only require an annual self-examination. If a licensee conducts a self-examination, the licensee shall provide any information requested under oath and on forms provided by the division by order or rule. The provisions of SDCL  51A-2-35 apply to records and examination reports required under this chapter.
General Authority:
SDCL  54-14-26.
Law Implemented:
SDCL  54-14-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:11 - Continuing education for mortgage loan originators

Current through Register Vol. 51, page 10, July 15, 2024
In order to meet the annual continuing education requirements referred to in SDCL 54-14-13.2, a licensed mortgage loan originator shall complete at least eight hours of education approved according to the standards established in 12 U.S.C. 5105(b) as of January 1, 2009.
General Authority:
SDCL 54-14-31.
Law Implemented:
SDCL  54-14-13.2.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:12 - Pre-licensing education of mortgage loan originators

Current through Register Vol. 51, page 10, July 15, 2024
In order to meet the pre-licensing education requirement in SDCL 54-14-13.1(4), an individual shall complete at least twenty hours of education approved according to the standards established in 12 U.S.C. 5104(c) as of January 1, 2009.
General Authority:
SDCL 54-14-31.
Law Implemented:
SDCL  54-14-13.1(4).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:13 - Testing of mortgage loan originators

Current through Register Vol. 51, page 10, July 15, 2024
In order to meet the written test requirement referred to in SDCL 54-14-13.1(5), an individual shall pass a qualified written test in accordance with the standards established in 12 U.S.C. 5104(d) as of January 1, 2009.
General Authority:
SDCL 54-14-31.
Law Implemented:
SDCL  54-14-13.1(5).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:14 - Challenge process

Current through Register Vol. 51, page 10, July 15, 2024
A mortgage licensee may challenge information entered into the nationwide mortgage licensing system and registry by the division. Any challenge must be in writing and identify the information being challenged and provide documentation to support the challenge. The division shall respond to any challenge in writing within 30 days from the date a challenge was received. A licensee may request a hearing pursuant to SDCL chapter 1-26 to further challenge information entered by the division.
A challenge filed in response to the denial of a license application or renewal shall be filed under the procedure established in §
									20:07:19:05.
General Authority:
SDCL  54-14-34.
Law Implemented:
SDCL  54-14-34.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:19 - Mortgage lenders and mortgage brokers › Section 20:07:19:15 - Reports of condition

Current through Register Vol. 51, page 10, July 15, 2024
Each licensee required to submit a report of condition pursuant to SDCL  54-14-36 shall provide to the nationwide mortgage licensing system and registry, loan activity data for the licensee's operations in South Dakota, to include loan activity performed by any licensed mortgage loan originator employed by a mortgage lender or mortgage brokerage licensee.
Any information provided by a licensee pursuant to this section is confidential subject to the information sharing provisions in SDCL  54-14-35.
General Authority:
SDCL  54-14-36.
Law Implemented:
SDCL  54-14-36.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:20 - Money lending licenses › Section 20:07:20:01 - Original license fee

Current through Register Vol. 51, page 10, July 15, 2024
Any person who applies for an original license shall include a non-refundable license fee of one thousand dollars with the application.
General Authority:
SDCL  54-4-40.
Law Implemented:
SDCL  54-4-40.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:20 - Money lending licenses › Section 20:07:20:02 - Renewal fee

Current through Register Vol. 51, page 10, July 15, 2024
The annual renewal fee for any person licensed under SDCL  54-4-40 is eight hundred dollars and is non-refundable.
General Authority:
SDCL  54-4-45.
Law Implemented:
SDCL  54-4-45.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:20 - Money lending licenses › Section 20:07:20:03 - Records required to be kept - Duration

Current through Register Vol. 51, page 10, July 15, 2024
The following records shall be kept for a period of at least three years, and shall be available for investigation, examination, and copying by the division:
(1) A report of income and financial condition of the licensee;
(2) A list of all owners, members, partners, directors, officers, or twenty-five percent or more owners or shareholders of the licensee;
(3) A record of each loan made that contains the loan agreement, a record of all loan proceeds dispersed, payments received, documentation of Regulation Z compliance, customer identification program documentation, and Office of Foreign Asset Control (OFAC) reporting documentation;
(4) A record of any renewal, rollover, or flip of any loan and required principal reduction;
(5) Documentation of any down payment, check, title document, account authorization, or assignment of wages taken as security from a borrower;
(6) A record of any liens or title filings and release of the same upon satisfaction of each loan.
Any records required by this section may be maintained in the form of electronically encoded data for investigation and examination in the form of computer printed reproduction, video display, or other medium that is readily convertible by the division into legible, tangible documents.
Any record required by this section shall be prepared in accordance with generally accepted accounting principles, if applicable.
General Authority:
SDCL  54-4-38(3).
Law Implemented:
SDCL  54-4-40,  54-4-43,  54-4-57.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:21 - Money transmission licenses › Section 20:07:21:01 - Original filing fees

Current through Register Vol. 51, page 10, July 15, 2024
Any person who applies for an original license pursuant to SDCL chapter 51A-17 shall include a nonrefundable application fee of five hundred dollars and an original license fee of one thousand dollars with the application.
General Authority:
SDCL  51A-17-16.
Law Implemented:
SDCL  51A-17-16.