Title 51A, BANKS AND BANKING

No person may use the word, bank, or any variation of the word, bank, or logo of an existing bank, trust company, savings association, savings bank, or affiliate in a manner that intentionally misleads a person about the source of origin, affiliation, or sponsorship of a product …

Any bank operating a branch bank or banks shall have total capital of not less than the minimum amount required by rule of the commission. Source: SL 1933 (SS), ch 2 , § 2; SDC 1939, § 6.0402; SL 1957, ch 11 ; SDCL, § 51-8-4; SL 1969, ch 11 , § 6.3; SL 1982, ch 334 , § 2; SL 1988…

A branch bank may be established de novo or by consolidating or merging with or purchasing the assets of another state bank, national bank or savings and loan association, or another federally insured financial institution. Source: SL 1933 (SS), ch 2 , § 2; SDC 1939, § 6.0402; SL…

No branch bank may close without the approval of the director. If a branch is closed the branch certificate shall be surrendered to the division. A violation of this section is a Class 2 misdemeanor. Source: SL 1984, ch 316 ; SL 1988, ch 377 , § 128; SDCL § 51-20-4.2; SL 2008, ch…

Any national bank whose principal place of business is in this state is hereby authorized to do all things and perform all acts which state banks are permitted to do or perform under this chapter, subject to the conditions and restrictions provided for state banks as to exercise …

Construction and operation of one detached drive - in facility for each bank and branch bank is authorized so long as such bank or branch bank shall comply with all the provisions of this chapter. Source: SL 1965, ch 21 , § 1; SDCL, § 51-8-8; SL 1969, ch 11 , § 6.6; SDCL, § 51-20…

A drive - in facility is "detached" within the meaning of this chapter when any part of any structure in which any of the services of the drive - in facility are carried on is located at least fifty feet from the building in which the main banking room of the bank or branch bank …

The term, remote service unit, as used in this chapter means an automated teller machine or ATM which is a manned or unmanned device located separate and apart from a bank or branch bank through or by means of which information relating to banking services rendered to the public …

No person other than a national bank, a bank organized under the laws of this or any state, a savings and loan association or savings bank organized under the laws of the United States or this or any state, or a credit union organized under the laws of the United States, may acce…

Remote service units as defined in this chapter are not branch banks as provided by chapter 51A-7 . Source: SL 1976, ch 305 , § 4; SL 1988, ch 377 , § 131; SDCL, § 51-20A-5.

Terms as used in this chapter mean: (1) "Bank service corporation," any corporation organized to perform bank services for one or more banks, each of which owns part of the capital stock of such corporation. (2) "Bank services," activities which are a part of the business of bank…

Any bank shall have power to purchase capital stock, bonds, debentures, or other such obligations of a bank service corporation. Source: SL 1963, ch 29 , § 2; SDCL, § 51-9-3; SL 1969, ch 11 , § 7.2; SDCL, § 51-21-2.

No bank service corporation may engage in any activity other than the performance of bank services for banks. Source: SL 1963, ch 29 , § 3; SDCL, § 51-9-2; SL 1969, ch 11 , § 7.3; SDCL, § 51-21-3.

No bank service corporation may purchase, hold or acquire the capital stock of any state or national bank or of any bank holding company. Source: SL 1970, ch 265 , § 41; SL 1988, ch 377 , § 133; SDCL, § 51-21-3.1.

Any bank services performed by a bank service corporation for any bank, whether on or off the premises of such bank, shall, as to such bank, be subject to regulation and examination to the same extent as if such bank services were performed by the bank itself on the premises of s…

The word "deposit" or "deposits" shall be construed to be the unpaid balance of money or its equivalent, including "deposits subject to check"; "dividends unpaid"; "savings deposits"; "special deposits"; "trust deposits"; "certified checks" and "cashier's checks outstanding"; "de…

Any bank pledging such securities pursuant to § 51A-10-9 may substitute or exchange, at any time it deems it advisable or desirable and without concurrence of the depositor, or any officers of such depositors, eligible securities of like nature and character for securities pledge…

Whenever the reserve of any bank shall fall below the legal amount required, such bank shall not increase its loans or discounts otherwise than by discounting or purchasing bills of exchange payable at sight or on demand. Source: SL 1909, ch 222 , art 2, § 28; SL 1915, ch 102 , a…

A bank may operate its deposit account in the name of a minor or in the name of two or more persons, one or more of whom are minors, with the same effect upon its liability as if such minors were of full age. Source: SL 1909, ch 222 , art 2, § 44; SL 1915, ch 102 , art 2, § 48; R…

Whenever a deposit has been made or shall hereafter be made, in any bank in the names of two or more persons, payable to any of them or payable to the survivor of them, such deposit or any part thereof, or any interest or dividend thereon, may be paid to any one or more of said p…

Whenever any deposit is made in a bank by a person which in form is in trust for another, but no other or further notice of the existence and terms of a legal and valid trust is given in writing to the bank, in the event of the death of the trustee, the deposit or any part thereo…

No bank so paying any such survivor or survivors under §§ 51A-10-3 and 51A-10-4 is liable for any estate, inheritance, or succession taxes due this state. Source: SL 1969, ch 11 , § 8.6; SL 1970, ch 265 , § 44; SDCL, § 51-22-7; SL 1992, ch 88 , § 13; SL 1993, ch 94 , § 7.

When a statement of account has been rendered by a bank to a depositor accompanied by vouchers, if any, which are the basis for debit entries in such account, or the depositor's passbook has been written up by the bank showing the condition of the depositor's account and delivere…

Nothing in § 51A-10-6 shall be construed to relieve the depositor from the duty imposed by law of exercising due diligence in the examination of such account and vouchers, if any, when rendered by the bank and of immediate notification to the bank upon discovery of any error ther…

It is a Class 2 misdemeanor for any officer or employee of any bank to certify any check, draft, or order drawn upon such bank unless the person drawing the same has on deposit an amount of money equal to the amount specified therein. Any check, draft, or order so certified by a …

No bank may give preference to any depositor or creditor by pledging the assets of the bank as collateral security except as provided in § 51A-4-13 and as follows: (1) The bank may deposit with the treasurer of the United States so much of its assets as may be necessary to qualif…

Terms used in this chapter, unless the context otherwise plainly requires, shall mean: (1) "Lessee," a person contracting with the lessor for the use of a safe deposit box; (2) "Lessor," a bank or branch bank which engages in the business of renting safe deposit facilities; (3) "…

If the rental due on a safe deposit box has not been paid for one year, the lessor may send a notice by registered or certified mail to the last known address of the lessee stating that the safe deposit box will be opened and its contents stored at the expense of the lessee unles…

The leasing of safe deposit boxes by a lessor shall be subject to such rules as the commission may prescribe, and such rules shall be promulgated with a view toward ensuring as much privacy and security to the lessee as sound banking practice will allow. Source: SL 1969, ch 11 , …

Where a safe deposit box is made available by a lessor to one or more persons acting as fiduciaries, the lessor may, except as otherwise expressly provided in the lease or the writings pursuant to which such fiduciaries are acting, allow access thereto as follows: (1) By any one …

Where a lessor without knowledge of the death or of an adjudication of legal incompetence of the lessee, deals with his agent pursuant to a written power of attorney signed by such lessee, the transaction binds the lessee's estate and the lessee. Source: SL 1969, ch 11 , § 9.4; S…

A bank may lease a safe deposit box to and in connection therewith deal with a minor with the same effect as if leasing to and dealing with a person of full legal capacity. Source: SL 1969, ch 11 , § 9.5; SDCL, § 51-23-5.

Joint leaseholds in and to a safe deposit box may be created by contract with two or more persons, including minors, named as lessees. The terms of the contract may provide that any one or more of the lessees, or the survivor or survivors of the lessee or lessees shall have acces…

If only one lessee is named in the lease agreement covering a safe deposit box rental and such lessee shall die, the safe deposit box may be opened at any time thereafter and all contents may be delivered, without inventory, to the personal representative or special administrator…

Any person or representative having a right of access to a safe deposit box or other receptacle of similar character shall, upon the death of any other person having a right of access to such box or receptacle, notify the person, firm, partnership, association, limited liability …

If the lessee is a corporation and the president, treasurer, or secretary certifies that certain designated persons are authorized to enter the box, the lessor may permit such designated person to enter without liability therefor. Source: SL 1969, ch 11 , § 9.8; SDCL, § 51-23-8.

Adverse claims to the contents of a safe deposit box shall be governed by § 51A-1-3 , insofar as such section may be applicable to this chapter. Source: SL 1969, ch 11 , § 9.9; SDCL, § 51-23-9.

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.

A bank may extend credit and collect a credit service charge through a revolving loan account arrangement with a debtor which permits the debtor to obtain loans from time to time by cash advances, by the purchase or satisfaction by the bank of obligations of the debtor incurred p…

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.