Title 51A, BANKS AND BANKING

In the event of any notice of expiration or non-extension of a letter of credit issued under subdivision 51A-17-102 (4), the licensee shall be required to demonstrate to the satisfaction of the director, fifteen days prior to expiration, that the licensee maintains and will maint…

The letter of credit referenced in subdivision 51A-17-102 (4) shall provide that the issuer of the letter of credit will honor, at sight, a presentation made by the beneficiary to the issuer of the following documents on or prior to the expiration date of the letter of credit: (1…

The director may designate an agent to serve on the director's behalf as beneficiary to a letter of credit so long as the agent and letter of credit meet requirements established by the director. The director's agent may serve as agent for multiple licensing authorities for a sin…

The director is authorized and encouraged to participate in multistate processes designed to facilitate the issuance and administration of letters of credit, including, but not limited to, services provided by the NMLS and State Regulatory Registry, LLC. Source: SL 2024, ch 196 ,…

Unless permitted by the director, by rule or by order, to exceed the limit as set forth herein, the following investments are permissible under § 51A-17-101 to the extent specified: (1) Receivables that are payable to a licensee from its authorized delegates in the ordinary cours…

A licensee transmitting virtual currencies shall hold like-kind virtual currencies of the same volume as that held by the licensee but that is obligated to consumers, in lieu of the permissible investments otherwise required in this chapter. Source: SL 2024, ch 196 , § 58.

(1) The director may suspend or revoke a license or order a licensee to revoke the designation of an authorized delegate if: (a) The licensee violates this chapter or a rule adopted or an order issued under this chapter; (b) The licensee does not cooperate with an examination or …

(1) The director may issue an order suspending or revoking the designation of an authorized delegate, if the director finds that: (a) The authorized delegate violated this chapter or a rule adopted or an order issued under this chapter; (b) The authorized delegate did not coopera…

(1) If the director determines that a violation of this chapter or of a rule adopted or an order issued under this chapter by a licensee or authorized delegate is likely to cause immediate and irreparable harm to the licensee, its customers, or the public as a result of the viola…

The director may enter into a consent order at any time with a person to resolve a matter arising under this chapter or a rule adopted or order issued under this chapter. A consent order must be signed by the person to whom it is issued or by the person's authorized representativ…

(1) A person that intentionally makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained under this chapter or that intentionally makes a false entry or omits a material entry in such a record is guilty of a Class 6 felony.…

The director may assess a civil penalty against a person that violates this chapter or a rule adopted or an order issued under this chapter in an amount not to exceed one thousand dollars per day for each day the violation is outstanding, plus this state's costs and expenses for …

(1) If the director has reason to believe that a person has violated or is violating § 51A-17-59 , the director may issue an order to show cause why an order to cease and desist should not issue requiring that the person cease and desist from the violation of § 51A-17-59 . (2) In…

In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. Source: SL 2024, ch 196 , § 66.

If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end, the provisio…

(1) A person licensed in this state to engage in the business of money transmission shall not be subject to the provisions of this chapter, to the extent that the provisions conflict with current law or establish new requirements not imposed under current law, until such time as …

Any person who engages in business activity regulated by this chapter in the state is deemed to have consented to the jurisdiction of the courts of South Dakota for all actions arising under this chapter. Source: SL 2024, ch 196 , § 69.

Any money coming into the custody of the division pursuant to this chapter shall be deposited with the state treasurer. The state treasurer shall credit the money to the banking special revenue fund. Any expenditure of money out of the fund may only be made by appropriation by th…

The following provisions apply to the sharing of information collected and retained by the director during the administration of this chapter: (1) The provisions of § 51A-17-55 regarding privacy or confidentiality apply to any information or material provided to the nationwide mo…

Terms used in this chapter mean: (1) "Acting in concert," persons knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement; (2) "Authorized delegate," a person a licensee designates to engage in money …

This chapter does not apply to: (1) An operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons exempted by this section or licensees, in connection with wire transfers, credit card transactions, debit card…

(1) In order to carry out the purposes of this chapter, the director may, subject to the provisions of subdivisions 51A-17-55 (1) and (4): (a) Enter into agreements or relationships with other government officials or federal and state regulatory agencies and regulatory associatio…

(1) Except as otherwise provided in this section, all information or reports obtained by the director from an applicant, licensee, or authorized delegate and all information contained in or related to an examination, investigation, operating report, or condition report prepared b…

(1) The director may conduct an examination or investigation of a licensee or authorized delegate or otherwise take independent action authorized by this chapter or by a rule adopted or order issued under this chapter as reasonably necessary or appropriate to administer and enfor…

(1) To efficiently and effectively administer and enforce this chapter and to minimize regulatory burden, the director is authorized and encouraged to participate in multistate supervisory processes established between states and coordinated through the Conference of State Bank S…

(1) In the event state money transmission jurisdiction is conditioned on a federal law, any inconsistencies between a provision of this chapter and the federal law governing money transmission shall be governed by the applicable federal law to the extent of the inconsistency. (2)…

(1) A person may not engage in the business of money transmission or advertise, solicit, or hold itself out as providing money transmission unless the person is licensed under this chapter. (2) This section does not apply to: (a) A person that is an authorized delegate of a perso…

(1) To establish consistent licensing between this state and other states, the director is authorized and encouraged to: (a) Implement all licensing provisions of this chapter in a manner that is consistent with other states that have adopted this chapter or multistate licensing …

(1) Applicants for a license must apply in a form and in a medium as prescribed by the director. Each form must contain content as set forth by rule, regulation, instruction, or procedure of the director and may be changed or updated by the director in accordance with applicable …

Any individual in control of a licensee or applicant or any individual that seeks to acquire control of a licensee, or each key individual must furnish to the director through NMLS the following items: (1) The individual's fingerprints for submission to the Federal Bureau of Inve…

If any individual in control of a licensee or applicant or any individual that seeks to acquire control of a licensee or each key individual has resided outside of the United States at any time in the last ten years, the individual must also provide an investigative background re…

When an application for an original license under this chapter appears to include all of the items and addresses all of the matters that are required, the application is complete, and the director must promptly notify the applicant in a record of the date on which the application…

A determination by the director that an application is complete and is accepted for processing means only that the application, on its face, appears to include all of the items, including the criminal background check response from the FBI, addresses all of the matters that are r…

When an application is filed and considered complete under §§ 51A-17-64 and 51A-17-65 , the director must investigate the applicant's financial condition and responsibility, financial and business experience, character, and general fitness. The director may conduct an on-site inv…

If an applicant avails itself or is otherwise subject to a multistate licensing process: (1) The director is authorized and encouraged to accept the investigation results of a lead investigative state for the purpose of § 51A-17-66 if the lead investigative state has sufficient s…

The director shall issue a formal written notice of the denial of a license application within thirty days of the decision to deny the application. The director shall set forth in the notice of denial the specific reasons for the denial of the application. An applicant whose appl…

The initial license term begins on the day the application is approved. The license shall expire on December thirty-first of the year in which the license term began, unless the initial license date is between November first and December thirty-first, in which instance the initia…

(1) A license under this chapter shall be renewed annually. (a) The director shall establish an annual renewal fee, not to exceed one thousand dollars, by rule promulgated pursuant to chapter 1-26 . (b) The annual renewal fee must be paid no more than sixty days before the licens…

Maintenance of License. (1) If a licensee does not continue to meet the qualifications or satisfy the requirements that apply to an applicant for a new money transmission license, the director may suspend or revoke the licensee's license in accordance with the procedures establis…

(1) Any person, or group of persons acting in concert, seeking to acquire control of a licensee must obtain the written approval of the director prior to acquiring control. An individual is not deemed to acquire control of a licensee and is not subject to these acquisition of con…

When an application for acquisition of control under § 51A-17-72 appears to include all the items and address all of the matters that are required, the application shall be considered complete and the director shall promptly notify the applicant in a record of the date on which t…

A determination by the director that an application for acquisition of control under § 51A-17-72 is complete and is accepted for processing means only that the application, on its face, appears to include all of the items and address all of the matters that are required, and is n…

When an application for acquisition of control under § 51A-17-72 is filed and considered complete under § 51A-17-73 , the director must investigate the financial condition and responsibility, financial and business experience, character, and general fitness of the person, or grou…

If an applicant for acquisition of control under § 51A-17-72 avails itself or is otherwise subject to a multistate licensing process: (1) The director is authorized and encouraged to accept the investigation results of a lead investigative state for the purpose of § 51A-17-73 if …

The director shall issue a formal written notice of the denial of an application to acquire control within thirty days of the decision to deny the application. The director must set forth in the notice of denial the specific reasons for the denial of the application. An applicant…

The requirements of subdivisions 51A-17-72 (1) and (2) do not apply to any of the following: (1) A person that acts as a proxy for the sole purpose of voting at a designated meeting of the shareholders or holders of voting shares or voting interests of a licensee or a person in c…