Title 51A — BANKS AND BANKING

This chapter applies to bank loans. Source: SL 1969, ch 11 , § 10.1; SL 1970, ch 265 , § 52; SL 1983, ch 13 , § 11; SDCL § 51-24-1; SL 2012, ch 252 , § 21.

The sale of surplus federal reserve funds and excess bank funds is not considered loans or obligations and are not subject to any limitation based on capital stock and surplus. Source: SL 1969, ch 11 , § 10.4; SDCL, § 51-24-7; SL 1988, ch 377 , § 146; SDCL, § 51-24-9.2.

A bank may lend on the security of a first or subsequent mortgage on real estate. Source: SL 1969, ch 11 , § 10.7; SL 1981, ch 346 , § 56; SL 1988, ch 377 , § 150; SDCL, § 51-24-10.

Notwithstanding any other provisions of law, a bank may contract for and collect the following credit service charges in connection with the extensions of credit made pursuant to § 51A-12-12 , in an amount agreed to by the bank and the debtor either initially or pursuant to a cha…

In addition to the general lien created by § 44-11-11 in favor of a bank on all property in possession of the bank belonging to its customers, a bank may offset against all loan balances, whether principal or interest, owed to the bank by a customer, all or any portion of the ban…

A bank may compound the interest or service fees charged on loans when disclosed in writing to the borrower. Source: SL 1981, ch 346 , § 62; SDCL, § 51-24-16.

A credit agreement, or any agreement executed in connection therewith, may provide for the creation of a security interest in any personal or real property, including any goods under such agreement, to secure payment of a debtor's outstanding indebtedness under such agreement. So…

A bank may require a borrower to maintain funds on deposit as a condition precedent to the granting of credit or any loan. Source: SL 1983, ch 359 , § 2; SDCL, § 51-24-18.

Except as otherwise provided in this title, no bank organized as a corporation or limited liability company may loan, or otherwise extend credit, to any corporation, partnership, or individual, an amount greater than the sum of: (1) Twenty percent of its capital stock or members'…

A state chartered bank in satisfactory condition, with the consent of its governing board, may request an exception to the loan or credit limitation as provided in § 51A-12-2 from the director. The bank shall apply for such an exception on forms prescribed by the director. The di…

Any exception granted by the director under § 51A-12-2.1 expires when the agricultural operating loan matures or twelve months after the exception is granted, whichever occurs first. A new exception request shall be submitted prior to the renewal of the agricultural operating loa…

For the purpose of calculating loan or credit limitations pursuant to § 51A-12-2 , a loan includes any credit exposure to a borrower arising from a derivative transaction, repurchase agreement, reverse repurchase agreement, securities lending transaction, or securities borrowing …

For purposes of § 51A-12-2.3 , a derivative transaction is any transaction that is a contract, agreement, swap, warrant, note, or option that is based in whole, or in part, on the value of any interest in, or any quantitative measure or the occurrence of any event relating to int…

51A-12-4 Loan to customer used for partnership or corporation. 51A-12-5 Discounting not considered as money borrowed for purposes of loan limitation. 51A-12-6 Maximum amount of loans by bank to its executive officers, directors, and certain shareholders. 51A-12-7

A loan or other extension of credit to a customer, the proceeds of which the customer intends to place in a partnership in which he is a partner or a corporation in which he is a stockholder, is not required to be combined with obligations of the partnership or corporation for th…

For the purposes of § 51A-12-2 , the discount of bills of exchange drawn in good faith against actual existing values, and the discount of commercial paper actually owned by the person negotiating the same shall not be considered as money borrowed. Source: SL 1909, ch 222 , art 2…

The maximum amount of loans by a bank to its executive officers, its directors, and its shareholders who individually own more than ten percent of the capital stock of the bank or its parent bank holding company, shall be set by rules promulgated by the commission pursuant to cha…

51A-12-8 Liability of officers and directors for excessive loans. 51A-12-9 Nonrisk and government guaranteed loans not included in loan limits. 51A-12-10 Sale of surplus federal reserve funds and excess bank funds not loan. 51A-12-11 Mortgage on real estate. 51A-12-12 Revolving c…

The issuing officer, the chief executive or managing officer and the board of directors of a bank shall be held personally liable for all excessive loans, until they are in compliance, including overdrafts which could create excess. Such liability shall remain in effect for so lo…

For the purpose of determining whether a loan is within the loan limits established by this chapter, that portion of a loan described in subdivisions (1), (2) and (3) of this section may not be considered as part of the loan: (1) That portion of a loan which is secured by a certi…