Title 51A — BANKS AND BANKING

Source: SL 1933, ch 47 , § 2; SDC 1939, § 6.0201; SL 1941, ch 13 ; SL 1945, ch 26 ; SL 1966, ch 11 ; SDCL, § 51-2-15; SL 1969, ch 11 , § 2.9; SL 1978, ch 350 , § 3; SDCL, § 51-16-9.

The Division of Banking is established and shall be administered under the direction and supervision of the Department of Labor and Regulation. The division is charged with supervision and control over the activities set forth in this title, and it shall exercise such other juris…

The commission shall hold at least two regular meetings each year. Special meetings, to be held on such notice as the director may direct, may be called at any time upon the written request of two members or by the director. All meetings shall be held at the office of the directo…

A majority of the voting members of the commission constitutes a quorum for the conduct of all business. At any meeting at which a quorum is not present, whether by reason of the inability of the member to participate or the member's disqualification pursuant to § 51A-2-16 , the …

The commission may contract for the services of such clerical, technical and legal assistance as it may require. Source: SL 1969, ch 11 , § 2.12; SL 1988, ch 377 , § 26; SDCL, § 51-16-12.

The commission may promulgate necessary rules pursuant to chapter 1-26 , consistent with the laws of this state, for the management and administration of banks and other banking entities, their subsidiaries and affiliates, over which it has jurisdiction as set forth in this title…

The commission may adopt rules under its jurisdiction: (1) To authorize banks to participate in any public agency hereafter created under the laws of this state or the United States, the purpose of which is to afford advantages or safeguards to banks or to depositors, and to comp…

Notwithstanding any restrictions, limitations, and requirements of law, in addition to all powers, expressed or implied, that a state bank has under the laws of this state, a state bank shall have the powers and authorities conferred as of January 1, 2008, upon federally chartere…

The restrictions, limitations, and requirements applicable to specific powers or authorities of federally chartered banks apply to state banks exercising those powers or authorities permitted under § 51A-2-14.1 but only insofar as the restrictions, limitations, and requirements r…

In making rules, the commission shall act in the interests of promoting and maintaining a sound banking system; securing deposits, depositors and other customers; preserving the liquid position of banks; promoting the competitive equality of state - chartered banks with national …

No bank may engage in any form of advertising which is false, misleading or deceptive. Source: SL 1969, ch 11 , § 2.13 (8); SL 1988, ch 377 , § 33; SDCL, § 51-16-20.

The director shall examine, at least once in every two calendar years, and at such other times that he may deem necessary, all of the affairs of each bank and its subsidiaries. In order to determine how frequently to examine a bank, he may establish a system of classifying banks,…

The director may issue subpoenas and subpoenas duces tecum returnable to any place within this state relating to any matter under investigation. He may administer oaths and examine witnesses under oath for like purposes and to that end may invoke the aid of any circuit court of t…

The Division of Banking shall be administered under the direction and supervision of the Department of Labor and Regulation and the secretary thereof. The division shall retain the quasi-judicial, quasi-legislative, advisory, and other nonadministrative functions (as defined in §…

The director shall examine any bank upon a formal application made by its board of directors, in which event, in addition to the regular fees prescribed, such bank shall pay all actual expenses incurred in connection therewith. Source: SL 1909, ch 222 , art 1, § 4; SL 1911, ch 25…

The director may order the prohibition of specific action at any stockholders' meeting of any bank pending timely application for judicial determination on any matter if he believes that such order is necessary to protect the bank against improper, incompetent or careless managem…

The director, may, subject to the approval of the commission, order the removal or prohibition from the banking industry in South Dakota, or both, of any director, officer, or employee of a bank, upon showing that the director, officer or employee has engaged or participated in a…

The commission shall approve or disapprove any removal order requested by the director pursuant to §

The director may require any bank: (1) To maintain its accounts in a prescribed manner having regard for the size of the bank; (2) To observe methods and standards for determining the value of various types of assets; (3) To charge off the whole or part of any asset which could n…

The director may issue a temporary order having force until the next regular meeting of the commission, or special meeting of the commission if requested by the director or by a member of the commission, requiring that any person cease and desist from engaging in any unsound or u…

The commission may enter, subject to chapter 1-26 , a permanent order, upon the return to it of a temporary order, issued by the director pursuant to § 51A-2-25 and a showing that the bank has engaged in unsound or unlawful practices. Source: SL 1981, ch 346 , § 13; SL 1988, ch 3…

If a person or bank that is subject to an order entered by the director or the commission pursuant to § 51A-2-22 , 51A-2-25 or 51A-2-26 , fails to comply with such order, the director or commission may seek an injunction from the circuit court in the county in which the bank is l…

The director shall have a seal of office containing the words "Director of the Division of Banking of South Dakota" in the form of a circle and the word "Seal" inside the circle. Source: SL 1909, ch 222 , art 1, § 3; SL 1911, ch 256 , § 3; SL 1915, ch 102 , art 1, § 3; RC 1919, §…

The division shall keep an official record of all fees collected and of all expenses incurred pursuant to this title. All money so collected shall be reported and paid to the state treasurer and deposited in the banking revolving fund. Source: SL 1909, ch 222 , art 1, §§ 2, 6, 18…

The division shall be under the administrative control and supervision of the director. If the office of director is vacated a successor shall be appointed to fill the unexpired term then remaining. The director shall have such professional and business experience that, in the op…

Copies of all official records and papers in the office of the Division of Banking, certified by the director and authenticated by the official seal, shall be received in evidence in all courts of this state with like force as the originals thereof. Whenever any certified copy of…

Before entering upon his duties, each of the persons hereinafter mentioned, and such other persons in positions of trust named by the commission, shall take and subscribe to the oath of office prescribed by the Constitution, and each shall give to the state a corporate surety bon…

Before entering upon the discharge of his duties, each member of the commission, the director, and all officers and employees of the division shall take an oath to keep secret all facts and information obtained in the discharge of his official duties, except: (1) As the public du…

No officer or employee of the division may be an officer, director, trustee, attorney, owner, shareholder or partner in any state bank, nor receive any payment or gratuity directly or indirectly from that organization, nor be indebted to any state bank, nor engage in negotiation …

The records of the division are open to public inspection. However: (1) The director may withhold from public inspection any record, including any correspondence, for so long as deemed necessary for the protection of a person or bank or to be in the public interest; (2) The direc…

If the director considers it necessary, the director may examine the books and records of a corporation that holds twenty-five percent or more of the stock of a bank. If any parent corporation of a state chartered bank refuses to give any information required in the course of an …

The director of the division shall be appointed by the secretary of labor and regulation and may be removed at the pleasure of the secretary. Source: SL 1973, ch 2 , § 45; SL 1973, ch 290 , § 3; SL 1980, ch 370 , § 21; SL 1988, ch 377 , § 18; SDCL § 51-16-2.1; SL 1995, ch 2 , § 5…

The secretary of labor and regulation may appoint a deputy director who shall devote all of his time to the duties of the office. During the absence or disqualification of the director or during a vacancy in such office, the deputy, as acting director, shall perform the duties of…

The division may employ examiners and special examiners, legal counsel, clerks, stenographers and other aides as deemed necessary to assist the director in the performance of the director's duties. The division shall fix the compensation of each employee and may dismiss any emplo…

The commission shall consist of five members appointed by the Governor, all of whom shall be residents of the state. The director shall be the executive officer of the commission and shall comply with and enforce all orders and directions of the commission. Three of the members o…

The term of office of members of the commission as created by this chapter is three years each. However, the term of office of only one member who is a director or officer of a bank may expire each year. Vacancies arising other than from the natural expiration of a term shall be …

The commission shall elect a chairman from its members. The commission shall select a secretary who need not be one of its members. Each member shall be reimbursed for his expenses and shall receive an allowance for each day actually and necessarily spent in the performance of hi…