Title 51A — BANKS AND BANKING

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. 51A-8-6 to 51A-8-8. Repealed by SL 2005, ch 253 , §§ 5 to 7.

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.

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.

Except as otherwise provided in this title, no bank organized as a corporation or limited liability company may loan, or otherwise extend credit, to any corporation, partnership, or individual, an amount greater than the sum of: (1) Twenty percent of its capital stock or members'…

A state chartered bank in satisfactory condition, with the consent of its governing board, may request an exception to the loan or credit limitation as provided in § 51A-12-2 from the director. The bank shall apply for such an exception on forms prescribed by the director. The di…

Any exception granted by the director under § 51A-12-2.1 expires when the agricultural operating loan matures or twelve months after the exception is granted, whichever occurs first. A new exception request shall be submitted prior to the renewal of the agricultural operating loa…

For the purpose of calculating loan or credit limitations pursuant to § 51A-12-2 , a loan includes any credit exposure to a borrower arising from a derivative transaction, repurchase agreement, reverse repurchase agreement, securities lending transaction, or securities borrowing …

For purposes of § 51A-12-2.3 , a derivative transaction is any transaction that is a contract, agreement, swap, warrant, note, or option that is based in whole, or in part, on the value of any interest in, or any quantitative measure or the occurrence of any event relating to int…

51A-12-4 Loan to customer used for partnership or corporation. 51A-12-5 Discounting not considered as money borrowed for purposes of loan limitation. 51A-12-6 Maximum amount of loans by bank to its executive officers, directors, and certain shareholders. 51A-12-7

A loan or other extension of credit to a customer, the proceeds of which the customer intends to place in a partnership in which he is a partner or a corporation in which he is a stockholder, is not required to be combined with obligations of the partnership or corporation for th…

For the purposes of § 51A-12-2 , the discount of bills of exchange drawn in good faith against actual existing values, and the discount of commercial paper actually owned by the person negotiating the same shall not be considered as money borrowed. Source: SL 1909, ch 222 , art 2…

The maximum amount of loans by a bank to its executive officers, its directors, and its shareholders who individually own more than ten percent of the capital stock of the bank or its parent bank holding company, shall be set by rules promulgated by the commission pursuant to cha…

51A-12-8 Liability of officers and directors for excessive loans. 51A-12-9 Nonrisk and government guaranteed loans not included in loan limits. 51A-12-10 Sale of surplus federal reserve funds and excess bank funds not loan. 51A-12-11 Mortgage on real estate. 51A-12-12 Revolving c…

The issuing officer, the chief executive or managing officer and the board of directors of a bank shall be held personally liable for all excessive loans, until they are in compliance, including overdrafts which could create excess. Such liability shall remain in effect for so lo…

For the purpose of determining whether a loan is within the loan limits established by this chapter, that portion of a loan described in subdivisions (1), (2) and (3) of this section may not be considered as part of the loan: (1) That portion of a loan which is secured by a certi…