Title 47 — CORPORATIONS

Corporations may be organized under this chapter to promote, assist, encourage, and through the cooperative efforts of the institutions and corporations which are members thereof, develop and advance the business prosperity and economy of the state to encourage new industries and…

Five or more natural persons of the age of twenty - one years or more, may act as incorporators by signing, acknowledging, filing, and recording articles of incorporation for a business development credit corporation. Source: SL 1957, ch 314 , § 1; SDC Supp 1960, § 55.6001.

The corporate powers of any business development credit corporation shall be exercised by a board of directors. The number of directors and their term of office shall be determined in a manner prescribed in the bylaws. At no time shall there be less than five directors. The initi…

At least twenty - five percent of the capital stock authorized in the articles of incorporation shall be paid into the treasury of the corporation in cash before the corporation shall be authorized to transact any business other than such as relates to its organization. Source: S…

Any business development credit corporation shall set apart as a surplus not less than ten percent of its net earnings each year until such surplus, with any unimpaired surplus paid in, shall amount to one - half of the capital stock. The surplus shall be kept to secure against l…

At least a majority of the common stock of a business development credit corporation shall at all times be held by residents of this state or by persons, firms, or corporations engaged in doing business therein. Common stock shall at all times be held by stockholder members who h…

The first annual meeting of a business development credit corporation shall occur at a date to be fixed by the board of directors as soon as reasonably possible after a minimum of twenty - five percent of the capital stock of the corporation is paid into its treasury and a minimu…

There shall be two classes of members in the corporation with voting rights specified in the articles of incorporation. (1) Stockholder members include individuals, corporations, and organizations who qualify by the purchase of common stock. (2) Nonstockholder members include ban…

Each nonstockholder member of a business development credit corporation shall establish a line of credit to the corporation as determined in the articles of incorporation. Source: SL 1957, ch 314 , § 5; SDC Supp 1960, § 55.6005 (2) (a).

All calls of funds which nonstockholder members of a business development credit corporation are committed to lend to the corporation shall be prorated by the corporation among the nonstockholder members in the same proportion that the individual lines of credit bear to the aggre…

Upon written notice given sixty days in advance, a nonstockholder member of a business development credit corporation may withdraw from such membership at the expiration date of such notice and after said expiration date shall cease to exercise any of the powers and privileges in…

In furtherance of the purposes set forth in § 47-10-1 and in addition to the powers conferred by the general laws relating to business corporations, any business development credit corporation shall, subject to the restrictions and limitations contained in this chapter, have the …

Nonstockholder members of a business development credit corporation do not assume any liability for the debts of the corporation. Source: SL 1957, ch 314 , § 5; SDC Supp 1960, § 55.6005 (2) (d).

Nonstockholder members of a business development credit corporation shall not share in any surplus of the corporation in excess of the obligations due such nonstockholder members. Source: SL 1957, ch 314 , § 5; SDC Supp 1960, § 55.6005 (2) (e).

Upon dissolution of a corporation organized under this chapter, obligations due the nonstockholder members are to be paid in full before any payments are made to the stockholder members. Source: SL 1957, ch 314 , § 5; SDC Supp 1960, § 55.6005 (2) (f).

Notwithstanding any other statute, the notes or other interest - bearing obligations of any corporation organized under this chapter, issued in accordance with this law and the articles of incorporation and bylaws of the corporation shall be legal investments for the banks, savin…

The provisions of §§ 47-1A-101 to 47-1A-863.3 , inclusive, §§ 47-1A-1401 to 47-1A-1440 , inclusive, and §§ 47-1A-1601 to 47-1A-1621.3, inclusive, shall apply to corporations incorporated under this chapter, insofar as they may be applicable and not inconsistent with this chapter.…

Subject to § 47-10-2 , any business development credit corporation shall have the power to borrow money on secured or unsecured notes from any bank, savings and loan association, trust company, or insurance company which is a nonstockholder member of the corporation and from othe…

Subject to § 47-10-2 , any business development credit corporation shall have the power to make secured or unsecured loans; but it is not the intention hereof to take from the lending institutions within the state any loans or commitments desired by such institutions generally in…

Subject to § 47-10-2 , any business development credit corporation shall have the power to establish and regulate the terms and conditions of any loans under § 47-10-4 and the charges for interest or service connected therewith. Source: SL 1957, ch 314 , § 2; SDC Supp 1960, § 55.…

Subject to § 47-10-2 , any business development credit corporation shall have the power to purchase, hold, lease, and otherwise acquire and to convey such real and personal estate as it may acquire in the satisfaction of debts, or pursuant to the terms and conditions of loans, or…

Subject to § 47-10-2 , any business development credit corporation shall have the power to promote the establishment of local industrial development corporations in the various communities of the state, to enter into agreements with them, and to cooperate with, assist and otherwi…

Subject to § 47-10-2 , any business development credit corporation shall have the power to participate with any duly authorized federal lending agency in the making of loans. Source: SL 1957, ch 314 , § 2; SDC Supp 1960, § 55.6002 (6).

The corporation shall lend money only when credit is not elsewhere readily available. Before granting any loan, the board of directors or a committee thereof shall endeavor, so far as is reasonably possible, to ascertain that the first opportunity to grant such loan has been give…