Title 51A, BANKS AND BANKING

All information the director generates in making an investigation or examination of a state trust company is confidential. All confidential information shall remain the property of the division and shall be furnished to the trust company for its confidential use. Under no circums…

No trust company may be incorporated or organized under the laws of this state or transact trust company business in this state until the application for its incorporation or organization and application or authority to do business and the location of its principal office have be…

If the director determines that the business of any trust company is being conducted in an unsafe or unsound manner, the director may appoint a special assistant who shall immediately take charge of the operation of the trust company for the purpose of correcting any unsafe or un…

A trust company is insolvent if: (1) The actual cash market value of its assets is insufficient to pay its creditor liabilities except that for this purpose unconditional evidence of indebtedness of the United States of America may be valued, at the discretion of the director, at…

If it appears upon the examination of any trust company or from any report made to the director that any trust company is insolvent, the director shall take charge of the trust company and all of its property and assets. In so doing the director may appoint a special assistant to…

The owners of any insolvent trust company and its creditors may formulate a plan for the reorganization of the trust company while the trust company is in the charge of the director or a special assistant or a receiver at any time before a dividend has been paid. The creditors of…

When the director takes charge of any trust company, the director shall ascertain its actual condition as soon as possible by making a thorough investigation into its affairs and condition. If the director is satisfied that the trust company cannot resume business or liquidate it…

The receiver, under the direction of the director, shall take charge of any insolvent trust company and all of its assets and property and liquidate the affairs and business for the benefit of clients, creditors, and owners. The receiver may sell or compound all bad and doubtful …

No receiver, appointed pursuant to § 51A-6A-44 , is liable to any person for good faith compliance with any law, statute, rule, or judgment, decree, or order of a court. Nor is any receiver liable to any person for any action taken or omitted unless a court finds that the receive…

At least once each six months the director shall examine each trust company in the hands of a receiver and shall file a copy of the examination report with the clerk of the circuit court of the county in which the trust company is located. Each receiver shall submit the records a…

In addition to the powers granted to the director and the commission in §§ 51A-6A-35 to 51A-6A-46 , inclusive, the powers granted to the director and commission pursuant to §§ 51A-15-11 to 51A-15-44 , inclusive, 51A-2-22 , and 51A-2-25 to 51A-2-27 , inclusive, may be utilized by …

The provisions of §§ 51A-6A-2 and 51A-6A-39 do not apply to the disclosure of information by the director or the commission in connection with the institution and prosecution of an action against an individual pursuant to the provisions of § 51A-2-22 or against a trust company pu…

A person acquiring control through direct or indirect ownership by an owner or an affiliated group of owners shall give the director at least sixty days prior written notice of any proposed trust company acquisition. If the director does not issue an order disapproving the propos…

A notice of a proposed trust company acquisition shall contain, in the form prescribed by the director, the following information: (1) The identity, personal history, business background, and experience of any person by whom or on whose behalf the acquisition is to be made, inclu…

The director may disapprove any proposed acquisition if: (1) The proposed acquisition of control would result in a monopoly or would be in furtherance of any combination or conspiracy to monopolize or attempt to monopolize the trust business in any part of this state; (2) The fin…

In ruling on an application required under this chapter, the director or the commission, as the case may be, shall consider the following: (1) The financial standing, general business experience, and character of the organizers or incorporators of the applicant; (2) The character…

Any trust company shall immediately notify the division of any material omission from the application or any material change in the facts reported in an application, either of which could have led to an unfavorable finding with respect to the criteria established in § 51A-6A-5 . …

Before any trust company can merge, consolidate with, convert from a corporation to a limited liability company or from a limited liability company to a corporation under § 47-1A-950 or 47-1A-950.1 , or transfer its assets and liabilities to another trust company or bank, it shal…

If a trust company has been acquired, merged, or consolidated with another trust company or financial institution, or its assets have been purchased and its liabilities assumed by another trust company or financial institution, in any instance other than an emergency, within thir…

When a merger or consolidation of any trust company occurs, the successor consolidated trust company or bank becomes the owner of, and entitled to, the possession of all rights, franchises, and interests, real estate, and personal property as is covered by the merger or consolida…

Upon the merger or consolidation of any trust company, the successor trust company, upon acquiring trust authority, may be appointed to act as trustee, personal representative, conservator, or any other fiduciary capacity to the same extent and with the same authority as the trus…

No trust company may take the name of any other trust company incorporated in the state or a name so similar to another as to be easily confused with it. No trust company may change its name until the name change has been submitted to and approved by the director. The director ma…

No trust company incorporated under the laws of this state may change its place of business, from one city or town to another or from one location to another within the same city or town, without the prior approval of the director. Any trust company desiring to change its place o…

After first applying for and obtaining the approval of the director, one or more trust service offices may be established and operated by a trust company incorporated under the laws of this state or by an out-of-state trust institution, if and to the extent that the state, territ…

All applications for charters under this chapter shall include a five thousand dollar application fee which is nonrefundable. This fee shall be remitted by the Division of Banking to the state general fund. Source: SL 1995, ch 268 , § 4; SL 1998, ch 282 , § 33.

Any trust company may become a stockholder in and a member of the federal reserve bank of the federal reserve district where the trust company is located. Source: SL 1995, ch 268 , § 59.

Any trust company when acting as fiduciary, and any trust company when holding securities as custodian for a fiduciary, may deposit, or arrange for the deposit, with the federal reserve bank in its district, of any securities the principal and interest of which the United States …

Any trust company, when acting in this state as a fiduciary or a co - fiduciary with others, may with the consent of its co - fiduciary or co - fiduciaries, if any, cause any investment held in any such capacity, to be registered and held in the name of a nominee or nominees of t…

Any trust company qualified to act as a fiduciary in this state may establish common trust funds or collective investment funds for the purpose of furnishing investments to itself as fiduciary, or to itself and others, as co-fiduciaries. Any trust company qualified to act as fidu…

An entity may be excluded from the provisions of chapters 51A-5 and 51A-6A if: (1) The entity is established for the exclusive purpose of acting as a trust protector, investment trust advisor, or distribution trust advisor, as defined by § 55-1B-1 , or any combination of such pur…

There is hereby established in the state treasury the trust company receivership and liquidation captive insurance company fund. The Department of Labor and Regulation may enter into an agreement with a captive insurance company for the management of the fund. Money in the fund m…

Any three or more persons may organize a public trust company and make and file articles as provided by the laws of this state. Any one or more persons may organize a private trust company and make and file articles as provided by the laws of this state. No trust company may be o…

All provisions of law applicable to a corporation and a limited liability company are applicable to a trust company, except where inconsistent with this chapter and the provisions of this title, in which case this chapter and the provisions of this title govern. Source: SL 2021, …

Prior to the expiration of the period for which it was incorporated or organized a trust company may, with the approval of at least a majority of the capital stock or ownership units of such trust company, amend its articles to extend its existence for an additional period, which…

The existence of any trust company shall date from the filing of its articles from which time it shall have and may exercise the incidental powers conferred by law upon corporations or limited liability companies, as applicable. However, no trust company may transact any business…

A branch bank or mobile branch bank may be operated by a bank only as authorized by this title and by the director under such rules as the commission shall require. Source: SL 1933 (SS), ch 2 , § 2; SL 1935, ch 54 ; SDC 1939, § 6.0402; SL 1957, ch 11 ; SDCL §§ 51-8-2, 51-8-3; SL …

The only banking services which may be offered or rendered to the public at any detached drive - in facility are services comparable to those customarily performed by a bank teller in a bank. No loan or discount services shall be offered or rendered to the public at any detached …

No detached drive-in facility may be constructed or operated without the prior written approval of the director, in the case of a state bank, or the appropriate federal regulatory authority in the case of a national bank. Source: SL 1965, ch 21 , § 7; SDCL § 51-8-9; SL 1969, ch 1…

A branch bank, mobile branch bank, or drive-in facility shall clearly indicate the identity of its parent bank. Source: SL 1981, ch 346 , § 70; SDCL § 51-20-13; SL 2008, ch 252 , § 34.

Terms used in §§ 51A-7-13 to 51A-7-26 , inclusive, mean: (1) "Acquisition of a branch," the acquisition of a branch located in a host state; (2) "Bank," a bank as defined in 12 U.S.C. § 1813(h) as of January 1, 1996. The term does not include any foreign bank as defined in § 12 U…

With prior approval of the director, any South Dakota state bank may establish and maintain a branch or acquire a branch in a state other than South Dakota. A South Dakota state bank may conduct any activities at a branch outside of South Dakota that are permissible for a bank ch…

No South Dakota state bank may establish or maintain a branch in another state until the application and appropriate fee has been submitted and approved as provided in § 51A-2-16 . In acting on an application, the director or commission, as the case may be, may consider the views…

To the extent another state imposes a restriction on the ability of a South Dakota bank to establish, acquire, or retain a branch in that state, the other state's restriction shall apply to the establishment, acquisition, or retention of a branch in South Dakota by a bank from th…

The director may make such examinations of any branch established and maintained in South Dakota pursuant to §§ 51A-7-13 to 51A-7-26 , inclusive, by an out - of - state state bank as the director may deem necessary to determine whether the branch is operated in compliance with th…

Every branch bank or mobile branch bank is subject to examination by the director as provided in §§ 51A-2-18 and 51A-2-20 and shall pay the fees prescribed therefor. Source: SDC 1939, § 6.0402 as added by SL 1957, ch 11 ; SDCL § 51-8-5; SL 1969, ch 11 , § 6.2; SL 1988, ch 377 , §…

The director may require periodic reports regarding any out - of - state bank that has established and maintained a branch in South Dakota. The required reports may be provided by the bank or by the bank supervisory agency having primary responsibility for the bank. Any reporting…