Title 51A, BANKS AND BANKING

Any bank, branch bank, drive - in facility, bank service corporation or other entity by its term subject to this title, is subject to this title, except that the legality of their organization under prior law is not affected by this title. Banks may retain their capital structure…

It is a Class 4 felony for an officer, director, employee, or agent of a bank: (1) With intent to deceive, to make any false or misleading statement or entry or omit any statement or entry that should be in any book, account, report, or statement of the bank; or (2) To obstruct o…

No person may knowingly file or cause to be filed any statement, information, application, report, document or other form of proof with the director or the commission which is in whole or in part materially false nor may any person knowingly make or cause to be made any false ent…

It is unlawful for a bank to pay a fine or penalty imposed by law upon any other person or to reimburse directly or indirectly any person by whom such fine or penalty has been paid. Any bank that makes an unlawful payment is subject to the imposition of a civil fine by the direct…

Any officer, director or employee of a bank, who wrongfully diverts or takes any of the money, funds, credits, data, information or property of the bank, whether owned by it or held in trust, who wrongfully withholds payment or remittance of the proceeds of any collection which m…

Any person who receives, possesses, conceals, stores, barters, sells or disposes of any money, funds, credits, data, information or property, knowing the same to have been wrongfully diverted or taken from the bank, is guilty of a Class 5 felony. Source: SL 1988, ch 377 , § 10; S…

No public officer qualified to take acknowledgments or proofs of written instruments may be disqualified for taking the acknowledgment or proof of any instrument in writing in which a bank is interested by reason of his employment, whether as officer or employee, or by reason of …

If any provision of this title or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications to this title which can be given effect without the invalid provision or application, and to this end the pro…

Any regulated lender as defined in § 54-3-14 has no duty to disclose information about its customers and has no duty to provide an opinion about the creditworthiness of its customers unless such information or opinion is required pursuant to a valid subpoena, court order, statute…

The director, with the approval of the commission, may enter into any agreement or compact with authorized representatives of other jurisdictions to provide for the administration of banking laws under the provisions of a signed agreement or compact. In administering any agreemen…

Neither the state nor any of its agencies or subdivisions may accept a central bank digital currency, whether foreign or domestic, as payment for taxes, fees, tuition, admission, the settlement of any account or debt, or any other purpose. For the purposes of this chapter, the te…

Terms used in this title mean: (1) "Articles of incorporation," articles of incorporation for a bank organized by incorporators as a corporation pursuant to chapter 47-1A and articles of organization for a bank organized by organizers or members as a limited liability company pur…

A person engaging in the purchase or sale of any goods or services or trading in financial products or services and who accepts central bank digital currency must also accept another form of legal tender. Source: SL 2024, ch 195 , § 2.

Notice to any bank of an adverse claim to a deposit or other item standing on its books to the credit of any person, or to the contents of a safe deposit box or property held in safekeeping, shall not be sufficient to cause said bank to recognize such adverse claim unless: (1) In…

Any officer, employee or director of a bank who is convicted of violating any of the provisions of this title is disqualified from thereafter acting as an officer, employee or director of any bank and is liable in a civil action to such bank or any of its stockholders for all los…

Any officer, employee, or director of a bank who fails to obey any lawful order made by the director or commission under provisions of this title is subject to the imposition of a civil fine by the director or commission not exceeding one thousand dollars per violation for each d…

Any proceeding commenced to recover any civil fine under § 51A-1-5 shall be conducted in accordance with the provisions of chapter 1-26 . Source: SL 1988, ch 377 , § 4; SDCL, § 51-15-4.1.

Whenever a violation of this title by a bank or an officer, director, or employee thereof is threatened or pending, the director may make application pursuant to law for an injunction or other appropriate remedy. Source: SL 1969, ch 11 , § 1.5; SL 1988, ch 377 , § 5; SDCL, § 51-1…

Except as expressly permitted in this title, a bank shall not assume liability as an insurer or as a guarantor or endorser of any security instrument or obligation in which or with respect to which it has no property interest. Source: SL 1969, ch 11 , § 1.6; SDCL, § 51-15-6.

It is a Class 1 misdemeanor for an officer, director, employee or agent of a bank to conceal or endeavor to conceal any transaction of the bank from any officer, director or employee of the bank or any official or employee of the division to whom it should properly be disclosed. …

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 …

The director shall act on an application to organize or change control of a bank; an application for a bank merger; an application to open or close a branch bank, mobile branch bank, or loan production office; or an application to change a bank's location. After the filing of a c…

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 § 51A-2-22 . Any proceeding held pursuant to this section shall conform with the provisions of chapter 1-26 governing contested cases. Source: SL 1981, ch 346 , § 12; SL 1988, ch 37…

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…

There is hereby created in the state treasury the banking special revenue fund. Moneys deposited to this fund shall be expended as directed by the Legislature. Source: SL 1978, ch 355 , § 2; SL 1988, ch 377 , § 46; SDCL, § 51-16-29.1.

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 …