Title 51A — BANKS AND BANKING

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 §

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…

Upon approval of an application by the director for authority to do business of a successor trust company, the director may call a special meeting of the commission and submit the application to the commission for its review and confirmation. Source: SL 1995, ch 268 , § 2; SL 200…

51A-6A-7 Organization of public and private trust companies--Submission and approval of articles--Required information. 51A-6A-7.1 Corporation laws applied. 51A-6A-8 Amendment of articles--Extension of existence. 51A-6A-9 Starting date of trust company existence--Commencement of …

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…

Source: SL 1998, ch 282 , § 43; SL 2008, ch 258 , § 14; SL 2021, ch 203 , § 31.

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…

Source: SL 1996, ch 280 , § 3; SL 2008, ch 252 , § 36.

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 §

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…

The commission may enter into joint examinations or joint enforcement actions with other bank supervisory agencies having concurrent jurisdiction over any branch established and maintained in South Dakota by an out - of - state bank or any branch established and maintained by a S…

51A-7-25 Authority of director in case of violation by South Dakota branch of out-of-state bank. 51A-7-26 Promulgation of rules to establish fees. 51A-7-27

If it is determined that a branch maintained by an out - of - state state bank in South Dakota is being operated in violation of any provision of the laws of South Dakota or is being operated in an unsafe and unsound manner, the director has the authority to take any enforcement …

The commission may promulgate rules pursuant to chapter 1-26 to establish the fees provided by §§ 51A-7-13 to 51A-7-15 , inclusive, and to provide the necessary forms to administer §§ 51A-7-13 to 51A-7-25 , inclusive. Source: SL 1996, ch 280 , § 14; SL 2021, ch 204 , § 5. 51A-7-2…

51A-7-28 Prohibitions concerning bank names. 51A-7-29 Intentional misleading as to source of product, service, or communication prohibited.

No provision of this chapter permits any person, partnership, association, or corporation to identify a newly formed bank, to rename an existing bank, or to open a branch of a newly formed or existing bank, if the effect of such formation, opening, or renaming would be likely to …

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…

51A-7-6 Closing branch--Approval required--Violation as misdemeanor. 51A-7-7 National banks' branching authority. 51A-7-8 Detached drive-in facility--Requirements for construction and operation. 51A-7-9 "Detached" defined. 51A-7-10 Limitation on functions of detached drive-in fac…

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 …