Title 51A — BANKS AND BANKING

Any bank may file an application with the commission to voluntarily liquidate and dissolve. Such application may be approved by the commission upon finding: (1) The proposal to liquidate and dissolve has been approved by a vote of two - thirds of the outstanding voting stock at a…

A bank may, at any time prior to the director's cancellation of its charter, revoke its intention to voluntarily liquidate under § 51A-15-1 , if it receives approval of its action upon an affirmative vote of at least two - thirds of the voting shares of the bank. Written evidence…

After a hearing with three days' oral or written notice to a majority of the members of the board of directors, the director may, with the consent of a majority of the members of the commission, suspend all activities and take possession of the business and property of a bank if …

"Insolvent" means incapable of meeting the demands of creditors or having liabilities which exceed assets. Source: SL 1982, ch 336 , § 1; SDCL, § 51-27-10.1.

No bank may receive any deposit when insolvent. No officer, director or employee who knows, or in the proper performance of his duty should know, of such insolvency may receive or authorize the receipt of such deposit. Any person violating this section shall be guilty of a Class …

The director shall suspend the activities and take possession pursuant to § 51A-15-11 or 51A-15-21 by posting upon the premises a notice reciting that all activities shall be suspended and that the director is assuming possession pursuant to this chapter and the time, not earlier…

When the director has taken possession he shall be vested with the full and exclusive power of management and control, including the power to assess outstanding capital stock, continue or to discontinue the business, to stop or to limit the payment of its obligations, to employ a…

The circuit court shall have original jurisdiction over all proceedings brought under this chapter. The venue of such proceedings shall be in the county in which the bank's principal place of business is located. Source: SL 1909, ch 222 , art 2, § 25; SL 1915, ch 102 , art 2, § 2…

At any time after the commencement of a proceeding under this chapter, the director may apply to the court for an order changing the venue to any other county of this state in which he deems that such proceeding may be most economically and efficiently conducted. Source: SL 1970,…

The director may appoint the Federal Deposit Insurance Corporation as receiver for a bank of which he has taken possession. Upon filing with the court an order of appointment of the receiver and a certificate indicating the acceptance by the Federal Deposit Insurance Corporation,…

The Federal Deposit Insurance Corporation may liquidate, reorganize, merge, or consolidate the bank in such manner as is permitted by the laws of the United States or by this chapter, possessing all rights, powers, duties, and obligations of the commission and director as therein…

Upon approval by the commission, pursuant to § 51A-15-1 , a bank shall forthwith cease to do business, shall have only the powers necessary to effect an orderly liquidation and shall proceed to pay its depositors and creditors and to wind up its affairs. Source: SL 1969, ch 11 , …

When the director has caused the suspension and taken possession of a bank, there shall be a postponement until six months after the commencement of such possession actions of the date upon which any period of limitation fixed by a statute or agreement would otherwise expire on a…

If, in the opinion of the director, an emergency exists which will result in serious losses to the depositors and creditors, he may suspend all activities and take possession of a bank without the consent of a majority of the members of the commission. Source: SL 1969, ch 11 , § …

Within three days after the director has suspended and taken possession of the property and business of a bank, that bank may apply to the circuit court to enjoin further proceedings. The court, after requiring the director to show cause why further proceedings should not be enjo…

Proceedings under chapter 51A-15 are exempt from the provisions of chapters 1-25 and 1-26 . Source: SL 1982, ch 336 , § 6; SDCL, §§ 51-27-15.1, 51-27-40.

If the director of the Division of Banking determines to reorganize a bank he shall enter an order proposing a reorganization plan. A copy of the plan shall be sent to each depositor and creditor who will not receive payment of his claim in full under the plan together with notic…

No judgment, lien or attachment may be executed upon any asset of the bank while it is in possession of the director. Upon the election of the director or receiver in connection with a liquidation or reorganization: (1) Any lien or attachment, other than an attorney's or mechanic…

With the approval of the commission, the director may borrow money in the name of the bank in his possession and may pledge its assets as security for the loan. Source: SL 1933, ch 54 , § 1; SDC 1939, § 6.0629; SDCL, § 51-14-25; SL 1969, ch 11 , § 13.9; SDCL, § 51-27-18.

All necessary and reasonable expenses of the director's suspension and taking possession of a bank and of its reorganization or liquidation shall be paid from the assets thereof. Source: SL 1911, ch 256 , § 15; SL 1915, ch 102 , art 1, § 14; SL 1917, ch 140 , § 4; RC 1919, § 8930…

No plan of reorganization may be prescribed under this chapter unless, in the opinion of the director or receiver: (1) The plan is feasible and fair to all classes of depositors, creditors and stockholders; (2) The face amount of the interest accorded to any class of depositors, …

Whenever in the course of reorganization supervening conditions render a plan of reorganization unfair or its execution impractical, the director may modify the plan or liquidate the bank. Any such action shall be taken by order upon reasonable notice. Source: SL 1969, ch 11 , § …

Within thirty days of the approval, a notice of voluntary liquidation shall be: (1) Mailed to the last known post - office address of each depositor, creditor, person interested in funds held as a fiduciary, lessee of a safe deposit box or bailor of property; (2) Posted conspicuo…

In liquidating a bank the director or receiver may exercise any power thereof but he may not, without the approval of the circuit court: (1) Sell any asset of the bank having an appraised value in excess of five thousand dollars; (2) Compromise or release any claim which exceeds …

Within six months of the commencement of involuntary liquidation, the director or receiver may by his election terminate any executory contract for services or advertising to which a bank is a party or any obligation of a bank as a lessee. A lessor who receives sixty days' notice…

As soon after the commencement of involuntary liquidation as is practicable, the director or receiver shall take the necessary steps to terminate all fiduciary positions held by a bank and take such action as may be necessary to surrender all property held by such bank as a fiduc…

The right of any agency of the United States insuring deposits of a bank in liquidation, to be subrogated to the rights of depositors upon payment of their claim shall not be less extensive than the law of the United States requires as a condition of the authority to issue such i…

As soon after commencement of liquidation by the director or receiver as practicable, he shall proceed as in § 51A-15-3 relating to voluntary liquidation by banks, except that no notice need be sent relating to fiduciary accounts as therein mentioned. Source: SL 1969, ch 11 , § 1…

Safe deposit boxes in banks being liquidated by the director, the contents of which have not been removed before the date specified, shall be disposed of by the director or receiver as in §

Within six months after the last day specified in the notice for the filing of claims or such longer period as may be allowed by the circuit court, the director or receiver shall: (1) Reject any claim determined to be invalid; (2) Determine the amount, if any, owing to each known…

Within twenty days after the filing of the schedule, pursuant to subdivision 51A-15-36 (3) any creditor, depositor or stockholder may file with the circuit court an objection to any determination made. Any objections so filed shall be heard and determined by the court, upon such …

After filing his schedule the director or receiver may, from time to time, make partial distribution to the holders of claims which are undisputed or have been allowed by the court, if a proper reserve is established for the payment of disputed claims. As soon as is practicable a…

The following claims shall have priority: (1) First, public deposits that are subject to chapter 4-6A and § 51A-10-9 ; (2) Then, obligations incurred by the director or receiver; (3) Then, total deposits of each depositor; (4) Then, all taxes due on a pro rata basis; (5) Then, wa…

As soon after approval as may be practicable the bank shall resign all fiduciary positions and take such action as may be necessary to settle its fiduciary accounts. Source: SL 1969, ch 11 , § 13.2 (3); SDCL, § 51-27-4.

After the payment of all claims filed within the time prescribed by § 51A-15-36 the director or receiver shall pay all other legal claims. Source: SL 1969, ch 11 , § 13.21 (2); SL 1988, ch 377 , § 182; SDCL, § 51-27-32.

If the sum available for any class is insufficient to provide payment in full, such sum shall be distributed to the claimants in the class on a pro rata basis. Source: SL 1969, ch 11 , § 13.21 (3); SL 1988, ch 377 , § 183; SDCL, § 51-27-33.

When the director or receiver has liquidated a bank, any assets remaining after all claims have been paid shall be distributed to the stockholders in accordance with their respective interests. Source: SL 1911, ch 256 , § 19; SL 1915, ch 102 , art 1, § 24; RC 1919, § 8940; SDC 19…

Unclaimed funds remaining after the completion of the liquidation shall be transferred to the state treasurer for disposal pursuant to chapter 43-41B . Source: SDC 1939, § 6.0618; SDCL, § 51-14-54; SL 1969, ch 11 , § 13.23; SL 1974, ch 301 , § 5; SL 1988, ch 377 , § 185; SDCL, § …

When the assets have been distributed in accordance with this chapter, the director or receiver shall file an account with the circuit court. Upon approval thereof, the director or receiver shall be relieved of liability in connection with the liquidation and the court shall canc…

All real estate mortgages, assignments and satisfactions of real estate mortgages and all assignments of sheriff's certificates of sale and all sales made and deeds executed by a receiver of an insolvent suspended national bank, by the board of trustees or local liquidation commi…

The contents of safe deposit boxes which have not been removed within thirty days after demand shall be opened and the contents dealt with in the manner provided for boxes upon which the payment of rental is in default and the sealed packages containing the contents and the certi…

The approval of an application for voluntary liquidation shall not impair any right of a depositor or creditor to payment in full and all lawful claims of creditors and depositors shall promptly be paid. The unearned portion of the rental of a safe deposit box shall be returned t…

Any assets remaining after the discharge of all obligations shall be distributed to the stockholders in accordance with their respective interests. No such distribution shall be made before: (1) All claims of depositors and creditors have been paid, or, in the case of any dispute…

Where a bank has commenced voluntary liquidation and the director finds that the assets will be insufficient for the full discharge of all obligations or that completion of the liquidation has been unduly delayed, he may take possession and complete the liquidation in the manner …

The director may require reports of the progress of a bank engaged in voluntary liquidation and whenever he is satisfied that the liquidation has been properly completed he shall cancel the charter and enter an order of dissolution. The filing of a certified copy of such order wi…