ARSD Article 20:07 — BANKING

LABOR AND REGULATION LABOR AND REGULATION

Chapter 20:07:01 General provisions, Repealed or transferred

ARSD 20:07:01:01 Repealed

Definitions.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:01:02 Repealed

Scope of article.** Repealed.

History

Source: 8 SDR 31, effective September 30, 1981; repealed, 11 SDR 46, effective October 9, 1984.

ARSD 20:07:01:03 Transferred

Transferred to § 20:07:12:03.**

Chapter 20:07:02 Rules of practice

ARSD 20:07:02:01 Petition for declaratory ruling

A person wishing the commission to issue its ruling as to the applicability to that person of a statutory provision or rule or order of the commission may file with the commission a petition in substantially the following form:

State of South Dakota

State Banking Commission

Petition for Declaratory Ruling

Pursuant to the provisions of SDCL 1-26-15, I, (name of petitioner) , of (address of petitioner) , am (title or capacity of petitioner) , and do hereby petition the South Dakota State Banking Commission for its declaratory ruling in regard to the following:

The state statute or State Banking Commission rule or order in question is: (here identify and quote the pertinent statute, rule or order).
The facts and circumstances which give rise to the issue to be answered by the Commission's declaratory ruling are:
The precise issue to be answered by the Commission's declaratory ruling is:

Dated at (city and state) , this ______ day of _______________, 19.

(Signature of petitioner)

History

Source: SL 1975, ch 16, § 1; 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 1-26-15.

ARSD 20:07:02:02 Commission action on petition

Upon receipt of the petition, the commission may request from the petitioner any other information it requires for the issuance of its ruling. Within 30 days following the receipt of the petition or within 30 days following receipt of the requested information, the commission shall issue its declaratory ruling and serve a copy of it by mail upon the petitioner.

History

Source: SL 1975, ch 16, § 1; 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 1-26-15.

ARSD 20:07:02:03 Superseded

Petition for initiation, repeal, or amendment of rules.** Superseded.

ARSD 20:07:02:04 Superseded

Commission action on petition.** Superseded.

Commission Note: SDCL 1-26-13 provides a statutory procedure to use for petitioning an agency for amendments to its rules, thus effectively superseding the above two sections.

ARSD 20:07:02:05 Repealed

Application to become a party to a hearing.** Repealed.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; repealed, 34 SDR 322, effective June 30, 2008.

Chapter 20:07:03 Internal management of banks

ARSD 20:07:03:01 Bonds required

Each state bank must furnish the division with a bankers' blanket bond according to the schedule in § 20:07:03:02.

History

Source: SL 1975, ch 16, § 1; 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 28, effective August 21, 1988.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-3-39.

ARSD 20:07:03:01.01 Void

Exception to bond requirement -- Merchant banks.** Void.

History

Source: 13 SDR 37, effective October 9, 1986; SL 1990, ch 380, §§ 2 and 3, void July 1, 1990.

ARSD 20:07:03:02 Blanket bond schedule

Banker's blanket bonds required by § 20:07:03:01 shall be furnished according to the following schedule. The numbers preceding the colon represent the range of assets and the numbers after the colon represent the amount of bonds.

(1)

Less than $ 19,999,999 :

$ 500,000

(2)

$ 20,000,000 to $ 24,999,999 :

$ 525,000

(3)

$ 25,000,000 to $ 34,999,999 :

$ 675,000

(4)

$ 35,000,000 to $ 49,999,999 :

$ 825,000

(5)

$ 50,000,000 to $ 74,999,999 :

$ 1,050,000

(6)

$ 75,000,000 to $ 99,999,999 :

$ 1,275,000

(7)

$ 100,000,000 to $ 149,999,999 :

$ 1,800,000

(8)

$ 150,000,000 to $ 249,999,999 :

$ 2,500,000

(9)

$ 250,000,000 to $ 499,999,999 :

$ 3,750,000

(10)

$ 500,000,000 to $ 999,999,999 :

$ 6,000,000

(11)

$ 1,000,000,000 and over:

$ 9,000,000

History

Source: SL 1975, ch 16, § 1; 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 14 SDR 46, effective September 28, 1987; 15 SDR 28, effective August 21, 1988.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-3-39.

ARSD 20:07:03:03 Copy of resolution required

With each bond filed with the division, a bank shall furnish a copy of the resolution adopted by its board of directors accepting the bond.

History

Source: SL 1975, ch 16, § 1; 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-3-39.

ARSD 20:07:03:03.01 Accounting principles

The books and accounts of banks shall be kept in accordance with generally accepted accounting principles unless a regulatory requirement requires otherwise.

Cross-Reference: Accounting principles, § 20:37:11:08.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-13-1.

ARSD 20:07:03:04 Records required

All state banks shall keep a record of all charge-offs, nonledger assets, and recoveries.

History

Source: SL 1975, ch 16, § 1; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 28, effective August 21, 1988.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-13-1.

ARSD 20:07:03:05 Repealed

Accounting for real property authorized to be held by bank.** Repealed.

History

Source: SL 1975, ch 16, § 1; 8 SDR 138, effective April 28, 1982; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 28, effective August 21, 1988; repealed, 33 SDR 212, effective June 6, 2007.

ARSD 20:07:03:06 Chief executive officer of banks to be board member

Chief executive officers of all state banks shall be members of the board of directors of their respective banks.

History

Source: SL 1975, ch 16, § 1; 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-2-15.

ARSD 20:07:03:07 Accounting for advances to borrowers

When a bank has made a loan, any advances made to the borrower, whether to protect the bank's security or otherwise, shall be considered as increasing the loan and not as protecting the security as far as the liability of SDCL 51A-12-8 is concerned. This includes advances made for the payment of taxes on the collateral security to the loan and any advances for operations.

History

Source: SL 1975, ch 16, § 1; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-12-8.

ARSD 20:07:03:08 Repealed

Municipal revenue bonds as security.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:03:09 Accounting for late payments -- Installment note and conditional sales contract with acceleration clause

When installment notes or conditional sales contracts which contain an acceleration clause are delinquent one installment, only the amount of the delinquent payments shall be considered as past due when other information indicates that the maker expects to perform the contract.

History

Source: SL 1975, ch 16, § 1; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-2-15.

ARSD 20:07:03:10 Accrual accounting

The books and records of a bank with total assets of $25,000,000 or more shall be kept on an accrual basis.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-13-1.

ARSD 20:07:03:11 Requirements for issuing securities

The director may approve the issuance of any security under SDCL 51A-3-16 if the following requirements are met:

(1) The issuing bank makes full disclosure of all material facts regarding the bank and the sale in writing to the prospective purchasers. The written disclosure shall be approved by the director prior to any offers to sell. Current stockholders of a bank shall be presumed to have knowledge of all material facts;

(2) The director determines the offering to be fair and equitable; and

(3) The director determines the offering to be in the best interest of the issuing bank.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 28, effective August 21, 1988; 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-3-16.

ARSD 20:07:03:12 Authorized general investments

A bank may purchase or hold the following for investment in accordance with SDCL 51A-4-25:

(1) Revenue bonds in any form issued by the United States; by any state or territory or its possession; by the District of Columbia; by any political subdivision of any state, territory, or possession; or by any public agency or instrumentality of one or more of any of these;

(2) Any securities acquired through foreclosure on collateral or acquired in good faith, by the way of compromise of a doubtful claim or to avoid a loss in connection with a debt previously contracted;

(3) Interest rate future contracts as a hedge;

(4) Corporate debt obligations which are rated in one of the top three rating bands by Moody's Investment Advisory Services or Standard and Poor's;

(5) Participation certificates in export programs sponsored by the United States or any of its agencies; and

(6) Annuities underwritten by any one company the value of which does not exceed 20 percent of the bank's capital stock and surplus and 10 percent of the bank's undivided profits as measured by the value of the annuities at the time of purchase.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 13 SDR 120, effective March 12, 1987; 15 SDR 28, effective August 21, 1988; 21 SDR 50, effective September 21, 1994; 29 SDR 92, effective December 24, 2002.
General Authority: SDCL 51A-2-13, 51A-4-25.
Law Implemented: SDCL 51A-4-25.

ARSD 20:07:03:12.01 Investment in mutual funds

20:07:03 :12.01. Investment in mutual funds. A bank may purchase or hold shares of registered mutual funds that invest in authorized general investments as provided in subdivision 20:07:03:12(1). Those funds that engage in financial futures, options, or repurchase agreements may be purchased if they meet the following criteria:

(1) The fund is subject to investment guidelines that limit its investment in hedging and yield enhancement activities to 25 percent of the fund; and

(2) No more than 5 percent of the fund is invested in any single issue.

A bank may invest up to 100 percent of the bank's capital stock and surplus in mutual funds.

History

Source: 13 SDR 21, effective August 25, 1986; 14 SDR 46, effective September 28, 1987; 21 SDR 36, effective August 31, 1994; 39 SDR 55, effective October 8, 2012.
General Authority: SDCL 51A-2-13, 51A-4-25.
Law Implemented: SDCL 51A-4-25.

ARSD 20:07:03:13 Repealed

Reserve requirement.** Repealed.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; repealed, 15 SDR 28, effective August 21, 1988.

ARSD 20:07:03:14 Repealed

General requirements for loans to bank officers.** Repealed.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 28, effective August 21, 1988; repealed, 34 SDR 200, effective January 29, 2008.

ARSD 20:07:03:15 Repealed

Permissible loans to officers.** Repealed.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 12 SDR 209, effective July 10, 1986; repealed, 34 SDR 200, effective January 29, 2008.

ARSD 20:07:03:16 Charge-off requirements

Within 30 days after receipt of a report of examination, a bank shall charge off 100 percent of all assets classified as loss. If an asset has been collected or put in a bankable condition, the bank may apply within those 30 days to the director for a waiver of the charge-off requirements of this section.

History

Source: 11 SDR 46, effective October 9, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 13 SDR 37, effective October 9, 1986; 14 SDR 116, effective March 20, 1988; 15 SDR 28, effective August 21, 1988; 19 SDR 85, effective December 14, 1992; 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-2-13.

ARSD 20:07:03:17 Allowance for loan and lease losses

A bank must maintain an allowance for loan and lease losses (ALLL) at a level that appropriately covers estimated credit losses on individually evaluated loans as well as estimated credit losses inherent in the remainder of the loan and lease portfolio. The analysis must be performed at least quarterly and must be consistent with generally accepted accounting principles. Bank management must maintain supporting documentation to validate ALLL appropriateness. The bank's board of directors must review the analysis and results and ensure the ALLL is appropriately funded throughout the accounting cycle. The actions of the board of directors must be recorded in the meeting minutes of the board of directors.

History

Source: 11 SDR 46, effective October 9, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 13 SDR 37, effective October 9, 1986; 13 SDR 120, effective March 12, 1987; 14 SDR 46, effective September 28, 1987; 15 SDR 28, effective August 21, 1988; 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-2-13.

ARSD 20:07:03:18 Board member involvement required

Board members must demonstrate involvement in the affairs of the bank by attendance at a majority of board meetings as shown by the minutes or by other proof in writing furnished to the division which satisfactorily demonstrates participation by the board member.

History

Source: 11 SDR 46, effective October 9, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 28, effective August 21, 1988.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-2-13.

ARSD 20:07:03:18.01 Number and frequency of board meetings -- Exception

A bank must establish through its bylaws that its board of directors hold meetings in a timely manner as is prudent, but not less than four meetings annually. The director, at the director's discretion, may require the bank to hold meetings of its board of directors more frequently than is provided for in its bylaws.

History

Source: 16 SDR 102, effective December 21, 1989; 25 SDR 72, effective November 19, 1998.
General Authority: SDCL 51A-2-13, 51A-3-34.
Law Implemented: SDCL 51A-3-34.

ARSD 20:07:03:19 Repealed

Need for investment demonstrated.** Repealed.

History

Source: 13 SDR 37, effective October 9, 1986; 15 SDR 28, effective August 21, 1988; repealed, 34 SDR 322, effective June 30, 2008.

ARSD 20:07:03:20 Repealed

Valuation of real estate.** Repealed.

History

Source: 13 SDR 37, effective October 9, 1986; 15 SDR 28, effective August 21, 1988; repealed, 34 SDR 322, effective June 30, 2008.

ARSD 20:07:03:21 Repealed

Valuation of a business venture.** Repealed.

History

Source: 13 SDR 37, effective October 9, 1986; 15 SDR 28, effective August 21, 1988; repealed, 34 SDR 322, effective June 30, 2008.

ARSD 20:07:03:22 Repealed

Limitations on investments.** Repealed.

History

Source: 13 SDR 37, effective October 9, 1986; 15 SDR 28, effective August 21, 1988; repealed, 34 SDR 322, effective June 30, 2008.

ARSD 20:07:03:23 Loans made with the assistance of third parties

If a third party is not the vendor of property that ultimately will be collateral for a particular loan, a bank may make the loan with the assistance of the third party or in connection with prior arrangements between the bank and the third party subject to the following conditions:

(1) Final approval or disapproval of a proposed loan is made by the bank at an authorized bank office or branch based upon bank credit standards;

(2) Disbursements of loan proceeds are made at an authorized bank office or branch; and

(3) The bank maintains proof that the activities engaged in under this section are included in coverage by its banker's blanket bond or an equivalent form of insurance.

History

Source: 16 SDR 114, effective January 15, 1990.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-2-14(4).

ARSD 20:07:03:24 Investment in federal home loan bank

A bank may purchase stock in a federal home loan bank and may borrow money from such a bank.

History

Source: 21 SDR 111, effective December 22, 1994.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-4-13.

ARSD 20:07:03:25 Time limit allowed on overdrafts

An overdraft may not be held as an asset by a bank for more than 60 consecutive days unless the overdraft is in the process of collection.

History

Source: 24 SDR 90, effective January 4, 1998; 34 SDR 200, effective January 29, 2008.
General Authority: 51A-2-13.
Law Implemented: 51A-4-21.

ARSD 20:07:03:26 Bank borrowings

A bank may borrow money and pledge assets as security to meet demand for loans or withdrawal demands by depositors.

History

Source: 25 SDR 135, effective July 1, 1999.
General Authority: SDCL 51A-4-13.
Law Implemented: SDCL 51A-4-13.

Chapter 20:07:04 Branch banks, Repealed

ARSD 20:07:04:01 Repealed

Application and fee.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:04:02 Repealed

Certified copy of resolution by board of directors.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:04:03 Repealed

Submission to commission.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:04:04 Repealed

Submission to federal deposit insurance corporation or federal reserve.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:04:05 Repealed

Restrictions.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:04:06 Repealed

Approval required -- Fee.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:04:07 Repealed

Approval of managing officer.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:04:08 Repealed

Security of branch assets.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:04:09 Repealed

Operating expenses.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:04:10 Repealed

Approval of permanent records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:04:11 Repealed

Examinations and fees.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:04:12 Repealed

Approval required to discontinue branch.** Repealed.

History

Source: SL 1975, ch 16, § 1; 12 SDR 151, 12 SDR 155, effective July 1, 1986; repealed, 15 SDR 28, effective August 21, 1988.

ARSD 20:07:04:13 Repealed

Operation of branch subject to banking rules.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:04:14 Repealed

Discontinuance of branch.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

Chapter 20:07:05 Retention of records

ARSD 20:07:05:01 Repealed

Administrative records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:02 Repealed

Auditing and accounting records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:03 Repealed

Capital records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:04 Repealed

International department records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:05 Repealed

General ledger records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:06 Repealed

Investment records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:07 Repealed

Loans and discount records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:08 Repealed

Consumer credit records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:09 Repealed

Mortgage records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:10 Repealed

Personnel records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:11 Repealed

Due from bank records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:12 Repealed

Proof and clearing records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:13 Repealed

Teller records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:14 Repealed

Transit records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:15 Repealed

Deposits -- Account analysis records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:16 Repealed

Banks, due to, deposit records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:17 Repealed

Official checks and draft records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:18 Repealed

Savings account records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:19 Repealed

Miscellaneous collection records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:20 Repealed

Customer service records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:21 Repealed

Certificate of deposit records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:22 Repealed

Christmas club records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:23 Repealed

Checking accounts -- Individual and firm records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:24 Repealed

General records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:25 Repealed

Registered mail records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:26 Repealed

Safe deposit vault records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:27 Repealed

Trust department records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:28 Repealed

Electronic data processing checking account records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:29 Repealed

Electronic data processing savings account records.** Repealed.

History

Source: SL 1975, ch 16, § 1; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:05:30 Records retention

Banks shall retain records as normal business practices dictate. Numerical documents shall be retained in numerical order. A bank shall not destroy any records necessary for subsequent examinations of the bank.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-13-5.

ARSD 20:07:05:31 Retention methods

Records may be microfilmed or maintained in the form of electronically encoded data for retention purposes. Any records required to be maintained may be made available on the basis of computer printed reproduction, video display, or other medium that is readily convertible by the division into legible, tangible documents.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 34 SDR 200, effective January 29, 2008.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-13-5.

ARSD 20:07:05:32 Records retention for trust companies

Any trust company record, other than those records required to be kept permanently by SDCL 51A-6A-30, shall be retained for a period of five years from the date of transaction.

In addition to the records required to be retained by SDCL 51A-6A-30, any committee meeting minutes and any internal or external audit reports shall be retained permanently by a trust company. For client relationships, whether active or dormant, including account opening and due diligence; annual account reviews; account transactions; and, relevant correspondence sufficient to properly monitor the accounts, shall be retained for at least five years. Any trust company policies, procedures, and operating manuals shall be kept current and there is no requirement to maintain outdated versions.

Any record required to be kept or retained by this section and SDCL 51A-6A-30 shall be easily accessible to the division at the trust company's location in this state either in hard copy or electronic format.

History

Source: 26 SDR 150, effective May 24, 2000; 36 SDR 208, effective June 30, 2010.
General Authority: SDCL 51A-6A-30.
Law Implemented: SDCL 51A-6A-30.

Chapter 20:07:06 Bank examinations

ARSD 20:07:06:01 Examination fee schedule

State-chartered banks shall pay a semiannual fee for examinations on total assets reported on the report of condition for June and December at the following rates:

(1) Five and one-half cents per $1,000 of assets up to and including $100,000,000; plus

(2) Five and one-quarter cents per $1,000 of assets over $100,000,000 up to and including $300,000,000; plus

(3) Five cents per $1,000 of assets over $300,000,000 up to and including $500,000,000; plus

(4) Four and three-quarters cents per $1,000 of all assets over $500,000,000 up to and including $1,000,000,000; plus

(5) One cent per $1,000 of assets over $1,000,000,000.

Non-depository banks shall be assessed an additional semiannual fee of $500.

The division shall maintain on its website a fee calculator to be used for the purpose of calculating the semi-annual examination fee owed by each bank. The formulas used to operate the fee calculator shall be available upon request.

History

Source: SL 1975, ch 16, § 1; 4 SDR 33, effective December 19, 1977; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 14 SDR 46, effective September 28, 1987; 19 SDR 85, effective December 14, 1992; 21 SDR 111, effective December 22, 1994; 22 SDR 133, effective April 24, 1996; 23 SDR 151, effective April 1, 1997; 24 SDR 119, effective March 29, 1998; 26 SDR 6, effective July 26, 1999; 29 SDR 182, effective July 6, 2003; 31 SDR 165, effective May 11, 2005; 33 SDR 212, effective June 6, 2007; 35 SDR 285, effective June 9, 2009.
General Authority: SDCL 51A-2-13, 51A-2-36.
Law Implemented: SDCL 51A-2-36.

ARSD 20:07:06:01.01 Repealed

Reduced examination fee schedule.** Repealed.

History

Source: 41 SDR 219, effective July 1, 2015.

ARSD 20:07:06:01.02 Reduced examination fee schedule

Notwithstanding the provisions of §§ 20:07:06:01 and 20:07:06:03, a state-chartered bank is not required to pay a semiannual fee for examinations for the June 2021 assessment period.

History

Source: 48 SDR 14, effective August 25, 2021.
General Authority: SDCL 51A-2-13, 51A-2-36.
Law Implemented: SDCL 51A-2-36.

ARSD 20:07:06:02 Remittance

The semiannual fees shall be remitted by electronic transfer after notice from the Division. The Division will provide notice to each state-chartered bank 30 to 75 days after the June 30 and December 31 reports of condition and income dates.

History

Source: SL 1975, ch 16, § 1; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 19 SDR 85, effective December 14, 1992; 41 SDR 219, effective July 1, 2015; 48 SDR 14, August 25, 2021.
General Authority: SDCL 51A-2-13, 51A-2-36.
Law Implemented: SDCL 51A-2-36.

ARSD 20:07:06:03 Additional examination fee

Additional examination and supervision fees.** Any bank engaged in non-traditional banking services, including credit cards, rent-a-bin agreements, payday lending, or loan syndication, shall pay an additional semiannual fee of one cent per $1,000 on all assets, but not less than $500. Any bank operating under an enforcement action shall pay an additional semiannual fee of one cent per $1,000 of all assets, but not less than $500.

Any bank requiring more than one examination in any calendar year shall pay the actual costs incurred by the division including salaries, travel expenses, and supplies.

A bank has the right to a hearing before the commission for a review of an assessment of additional fees under this section.

History

Source: SL 1975, ch 16, § 1; 4 SDR 33, effective December 19, 1977; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 19 SDR 85, effective December 14, 1992; 35 SDR 285, effective June 9, 2009.
General Authority: SDCL 51A-2-13, 51A-2-36.
Law Implemented: SDCL 51A-2-36.

Chapter 20:07:07 Interest rates, Repealed

ARSD 20:07:07 Repealed chapter

CHAPTER 20:07:07

INTEREST RATES

(Repealed. 8 SDR 31, effective September 30, 1981)

Chapter 20:07:08 Retirement accounts

ARSD 20:07:08:01 Repealed

Definitions.** Repealed.

History

Source: 2 SDR 26, effective October 13, 1975; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:08:02 State-chartered banks may act as trustee or custodian pursuant to SDCL 51A-5-2

A state-chartered bank not presently authorized by its articles of incorporation and the commission to exercise trust powers may, without obtaining the prior approval of the commission, act as trustee or custodian pursuant to SDCL 51A-5-2.

History

Source: 2 SDR 26, effective October 13, 1975; 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13, 51A-5-2.
Law Implemented: SDCL 51A-5-2.

ARSD 20:07:08:03 Repealed

Investments solely in savings accounts or time deposits.** Repealed.

History

Source: 2 SDR 26, effective October 13, 1975; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:08:04 Repealed

No commingled funds for purposes of investment.** Repealed.

History

Source: 2 SDR 26, effective October 13, 1975; repealed, 8 SDR 31, effective September 30, 1981.

ARSD 20:07:08:05 Repealed

Deposits of three years or more under $100,000.** Repealed.

History

Source: 2 SDR 26, effective October 13, 1975; repealed, 8 SDR 31, effective September 30, 1981.

Chapter 20:07:09 Remote electronic banking, Repealed

ARSD 20:07:09 Repealed chapter

CHAPTER 20:07:09

REMOTE ELECTRONIC BANKING

(Repealed. 34 SDR 200, effective January 29, 2008)

Chapter 20:07:10 Fees, applications, and approvals

ARSD 20:07:10:01 Certified copies fee

The director may furnish certified copies of any record or paper filed in the office of the director for a fee of 50 cents per page, paid in advance.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13, 51A-2-31.
Law Implemented: SDCL 51A-2-31.

ARSD 20:07:10:02 Application fees

Applicants shall pay the following application fees:

(1) With an application to move a main office or branch bank, $1,000;

(2) With an application to establish a new bank, $7,500;

(3) With an application to establish a branch bank, mobile branch bank, loan production office, or detached drive-in facility, $1,000; and

(4) With an application for the change in control of a bank or to merge banks, $2,500.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 28, effective August 21, 1988; 16 SDR 102, effective December 21, 1989; 22 SDR 32, effective September 12, 1995; 24 SDR 180, effective June 30, 1998; 26 SDR 150, effective May 24, 2000; 36 SDR 99, effective December 10, 2009; 47 SDR 68, effective December 9. 2020.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-1-2(19), 51A-2-16, 51A-3-7, 51A-3-25.

ARSD 20:07:10:03 Application form required

An application must be filed on the forms prescribed by the director. Except as otherwise provided in this section, the application must be accompanied by a resolution of the bank or trust company's board of directors or board of managers to authorize the application and the appropriate fee. A resolution is not required if the application is for a new bank or trust company charter. The director shall make all application forms available on the division's website and provide a list of forms upon request. An applicant shall file an electronic copy of any application form and any attachments.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 28, effective August 21, 1988; 34 SDR 322, effective June 30, 2008; 36 SDR 208, effective June 30, 2010; 47 SDR 68, effective December 9, 2020.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-2-16, 51A-3-7, 51A-3-15, 51A-6A-4.

ARSD 20:07:10:04 Repealed

New bank, branch, merger, and detached drive-in fee.** Repealed.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 14 SDR 46, effective September 28, 1987; repealed, 15 SDR 28, effective August 21, 1988.

ARSD 20:07:10:05 Conditions of approval

The director shall condition the approval of new banks, branch banks, mobile branch banks, bank mergers, detached drive-in facilities, and moving an office on the requirements that prior to the acceptance of any deposits by a bank it must possess federal deposit insurance corporation insurance of accounts or a similar insurance approved by the director and it must have the approval of the bank's application by the federal deposit insurance corporation or the appropriate federal reserve bank. Banks not wishing to accept deposits need not obtain deposit insurance, but in no case may such banks accept deposits without complying with the provisions of this section.

History

Source: 8 SDR 31, effective September 30, 1981; 11 SDR 46, effective October 9, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 14 SDR 46, effective September 28, 1987; 15 SDR 28, effective August 21, 1988; 15 SDR 132, effective March 8, 1989; 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-2-16, 51A-3-11, 51A-4-8.

ARSD 20:07:10:06 Minimum capital requirement for a new bank

The minimum total capital that will be approved for a newly organized bank is $600,000. The commission may require additional capital if the commission projects that the total capital will not equal or exceed eight percent of the total assets of the bank at the end of three years of operation.

History

Source: 8 SDR 31, effective September 30, 1981; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-3-4.

ARSD 20:07:10:06.01 Exceptions to capital requirements

The commission may exempt from capital requirements those newly organized banks created pursuant to an interim merger transaction and those created on an emergency basis.

History

Source: 14 SDR 46, effective September 28, 1987.
General Authority: SDCL 51A-2-13, 51A-2-14.
Law Implemented: SDCL 51A-3-4, 51A-14-6.

ARSD 20:07:10:07 Capital requirements for branch banks

The minimum total capital required for operating branch banks is eight percent of the deposits of the entire bank. The director may not approve an application to establish a branch bank unless the bank's total capital is at least eight percent of the total projected deposits of the entire bank at the end of three years' operation of the proposed branch bank. The approval shall also require the bank to maintain total capital equal to or greater than eight percent of deposits.

The director shall consider as a separate category the establishment of branch banks by a purchase of assets and assumption of liabilities of an existing branch bank or bank. In such cases, the director shall consider the current financial condition of the acquiring bank. The director may authorize the establishment of such a branch bank if the acquiring bank's total capital after the acquisition of the branch will be not less than six percent of the total assets of the entire resulting bank.

History

Source: 8 SDR 31, effective September 30, 1981; 9 SDR 143, effective May 19, 1983; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 28, effective August 21, 1988; 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 51A-2-13, 51A-7-3.
Law Implemented: SDCL 51A-3-8, 51A-7-3.

Chapter 20:07:11 Super NOW deposit accounts, Repealed

ARSD 20:07:11 Repealed chapter

CHAPTER 20:07:11

SUPER NOW DEPOSIT ACCOUNTS

(Repealed. 12 SDR 79, effective November 12, 1985)

Chapter 20:07:12 Definitions

ARSD 20:07:12:01 Repealed

Special purpose bank defined.** Repealed.

History

Source: 11 SDR 46, effective October 9, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; repealed, 14 SDR 46, effective September 28, 1987.

ARSD 20:07:12:02 Repealed

Moral turpitude defined.** Repealed.

History

Source: 11 SDR 46, effective October 9, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; repealed, 15 SDR 28, effective August 21, 1988.

ARSD 20:07:12:03 Total capital defined -- Primary and secondary capital

As used in this article the term, total capital, means the sum of primary and secondary capital.

The term, primary capital, means the sum of common stock, perpetual preferred stock, capital surplus, undivided profits, capital reserves, mandatory convertible debt (to the extent of 20 percent of primary capital exclusive of such debt), the pro rata share in certain consolidated subsidiaries, and the allowance for loan and lease losses minus those assets classified loss that are subject to charge-off.

The term, secondary capital, means the sum of mandatory convertible debt that is not included in primary capital, limited life preferred stock and subordinated notes and debentures with a weighted average principal maturity later than seven years from the date of issuance. Secondary capital may not be more than 50 percent of primary capital.

Cross-Reference: Investment in subsidiaries and bank capital, § 20:07:16:08.

History

Source: 8 SDR 31, effective September 30, 1981; transferred from § 20:07:01:03, 11 SDR 46, effective October 9, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 13 SDR 37, effective October 9, 1986; 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-3-4, 51A-7-3.

ARSD 20:07:12:04 Impaired capital defined

A bank's capital is considered impaired when its total capital as defined by § 20:07:12:03 is four percent or less of the bank's total assets.

History

Source: 11 SDR 46, effective October 9, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 13 SDR 37, effective October 9, 1986.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-2-13, 51A-15-11(1).

Chapter 20:07:13 Money brokers, Repealed

ARSD 20:07:13 Repealed chapter

CHAPTER 20:07:13

MONEY BROKERS

(Repealed. 25 SDR 39, effective September 23, 1998)

Chapter 20:07:14 Loan production offices

ARSD 20:07:14:01 Restrictions

A loan production office may not receive deposits in any form. All disbursements of loan proceeds must originate at the main office or a branch of the bank.

History

Source: 11 SDR 46, effective October 9, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 25 SDR 39, effective September 23, 1998; 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-1-2(13), 51A-2-13.

ARSD 20:07:14:02 Repealed

Annual reporting requirements.** Repealed.

History

Source: 11 SDR 46, effective October 9, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; repealed, 25 SDR 39, effective September 23, 1998.

Chapter 20:07:15 Suspension and liquidation

ARSD 20:07:15:01 Emergency charters

The banking commission may, without further notice or hearing, grant a charter or branch authorization under the following circumstances:

(1) Pursuant to SDCL 51A-15-18, the director has appointed the federal deposit insurance corporation as receiver for a bank of which the director has taken possession;

(2) The federal deposit insurance corporation sells the bank to another bank that purchases the assets and assumes the liabilities of the failed bank; and

(3) A charter or branch authorization is necessary for the assuming bank because of the purchase and assumption.

History

Source: 11 SDR 46, effective October 9, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 28, effective August 21, 1988.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-2-13, 51A-14-6, 51A-15-18, 51A-15-19.

Chapter 20:07:16 Bank subsidiaries

ARSD 20:07:16:01 Bank subsidiary defined

A bank subsidiary of a state-chartered bank is any company 25 percent or more of whose voting shares is directly or indirectly owned or controlled by the bank or is held by it with power to vote. Shares not beneficially owned by the bank but held of record by a bank trust department are not considered owned or controlled by the bank.

History

Source: 12 SDR 106, effective January 1, 1986; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13 to 51A-2-15.
Law Implemented: SDCL 51A-4-1.

ARSD 20:07:16:02 Exemption

Any subsidiary of a bank formed for the sole purpose of holding, receiving, or operating real or personal property repossessed by a bank through foreclosure proceedings or other proceedings in lieu of debts previously contracted in the ordinary course of the bank's business is exempt from the requirements of this chapter.

History

Source: 12 SDR 106, effective January 1, 1986; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13 to 51A-2-15.
Law Implemented: SDCL 51A-4-1.

ARSD 20:07:16:03 Examination and supervision

Any subsidiaries of banks as defined in § 20:07:16:01 are subject to examination and supervision by the division to the same extent and in the same manner as state-chartered banks.

History

Source: 12 SDR 106, effective January 1, 1986; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13 to 51A-2-15.
Law Implemented: SDCL 51A-2-18.

ARSD 20:07:16:04 Conduct and practices

A bank subsidiary as defined in § 20:07:16:01 shall at all times conduct its business and operations in a safe and sound manner, consistent with prudent business practices. A bank subsidiary shall also meet the following requirements:

(1) The subsidiary shall conduct business pursuant to independent policies and procedures designed to make known to the public that the subsidiary exists as an organization separate from the parent bank;

(2) The subsidiary shall maintain separate accounting procedures and corporate records that are open to examination by the division;

(3) The subsidiary shall observe separate corporate formalities.

History

Source: 12 SDR 106, effective January 1, 1986; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13 to 51A-2-15.
Law Implemented: SDCL 51A-4-1.

ARSD 20:07:16:05 Loans to subsidiaries

Loans to a subsidiary made in the normal course of business shall not be construed as a direct investment in that subsidiary. Maximum loan limitations for individual borrowers provided in SDCL 51A-12-2 apply to subsidiaries of the bank in aggregate. Any bank that exceeds loan limits to its subsidiaries in the aggregate amount must give notice to the division and receive written approval.

History

Source: 12 SDR 106, effective January 1, 1986; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13 to 51A-2-15.
Law Implemented: SDCL 51A-12-2, 51A-12-7, 51A-12-8.

ARSD 20:07:16:06 When prior approval required

A bank may acquire, make an investment in, or organize a bank subsidiary without prior application to or the consent of the division. A bank acquiring, making an investment in, or organizing a bank subsidiary shall notify the division in writing of such action at least 10 business days prior to the first operation of the subsidiary.

History

Source: 12 SDR 106, effective January 1, 1986; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13 to 51A-2-15.
Law Implemented: SDCL 51A-2-25, 51A-4-1.

ARSD 20:07:16:07 Definition of special bank subsidiary

A special bank subsidiary is any subsidiary of a bank which engages in one or more of the following businesses: insurance underwriting, real estate development, or acting as a surety or guarantor.

History

Source: 12 SDR 106, effective January 1, 1986; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13 to 51A-2-15.
Law Implemented: SDCL 51A-2-40, 51A-4-4.

ARSD 20:07:16:08 Investment in subsidiaries and bank capital

For purpose of capital calculations, primary capital of a bank includes the bank's pro rata share of the shareholder's equity of all bank subsidiaries except those bank subsidiaries which are special bank subsidiaries. Banks shall not count as primary capital any investment in special bank subsidiaries.

History

Source: 12 SDR 106, effective January 1, 1986; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13 to 51A-2-15.
Law Implemented: SDCL 51A-4-1.

ARSD 20:07:16:09 Investment in special bank subsidiaries

No state-chartered bank may invest more than 10 percent of its total capital in any one special bank subsidiary or more than 20 percent of its total capital in all special bank subsidiaries without the written permission of the director.

History

Source: 12 SDR 106, effective January 1, 1986; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13 to 51A-2-15.
Law Implemented: SDCL 51A-4-1.

ARSD 20:07:16:10 Requirement of special bank subsidiaries

A special bank subsidiary must meet the following requirements:

(1) The subsidiary is adequately capitalized, as determined by the director;

(2) The subsidiary is physically separate and distinct in its operations from the operations of the parent bank;

(3) Physical separation is achieved at a minimum by separate offices clearly designated as belonging to the subsidiary, access to which is through a separate entrance from that used for the parent bank, except that the parent bank and the subsidiary's offices may be reached through common outer entry;

(4) The subsidiary does not share a common name or logo with the parent bank;

(5) The subsidiary conducts business pursuant to independent policies and procedures designed to make known to the public that the subsidiary exists as an organization separate from the parent bank;

(6) The subsidiary maintains separate accounting procedures and corporate records that are open to examination by the division;

(7) The subsidiary observes separate corporate formalities;

(8) The subsidiary retains separate employees who are not employees of the parent bank and are compensated by the subsidiary;

(9) The subsidiary shares not more than one common officer with the parent bank;

(10) A majority of the subsidiary's board of directors is composed of persons who are neither directors nor officers of the parent bank; and

(11) Application for operation of the subsidiary is approved by the director.

History

Source: 12 SDR 106, effective January 1, 1986; 12 SDR 151, 12 SDR 155, effective July 1, 1986.
General Authority: SDCL 51A-2-13 to 51A-2-15.
Law Implemented: SDCL 51A-4-1, 51A-4-4.

Chapter 20:07:17 Treatment of losses, Repealed

ARSD 20:07:17 Repealed chapter

CHAPTER 20:07:17

TREATMENT OF LOSSES

(Repealed. 34 SDR 322, effective June 30, 2008)

Chapter 20:07:18 Purchase of life insurance

ARSD 20:07:18:01 Key person defined

A key person is an executive officer or member of the board of directors determined by the board of directors to be essential to the continued sound operation of the bank based on board review of the person's experience, education, and skills.

History

Source: 20 SDR 33, effective September 5, 1993.
General Authority: SDCL 51A-2-13, 51A-4-42.
Law Implemented: SDCL 51A-4-42.

ARSD 20:07:18:02 Authority to purchase life insurance

Banks may purchase and hold an interest in cash value life insurance policies on the life of its key persons and borrowers and may purchase cash value life insurance in connection with benefit plans on employees, officers, and directors, subject to the limitations in this chapter. The bank may not purchase cash value life insurance if the insurable interest is primarily based on a key person's status as a shareholder of the bank or bank holding company. Funding for the life insurance premium payment of an employee, officer, or director as a part of a benefit plan may be split jointly between the bank and the employee, officer, or director. Banks may purchase individual or group life insurance in connection with deferred compensation agreements entered into with its officers, employees, and directors.

History

Source: 20 SDR 33, effective September 5, 1993.
General Authority: SDCL 51A-2-13, 51A-4-42.
Law Implemented: SDCL 51A-4-42.

ARSD 20:07:18:03 Limitations on purchase of life insurance on key person

The purchase of cash value life insurance on a key person by a bank is subject to the following limitations:

(1) A bank may not purchase life insurance policies for the bank's own account as an investment;

(2) A bank's purchase of a life insurance policy underwritten by one company on a key person may not exceed 25 percent of the bank's capital stock and surplus as measured by the policy's cash surrender value at the time of purchase;

(3) A bank may not commit an amount toward the purchase of life insurance policies, as measured by the cash surrender value at the time of purchase, that is more than 25 percent of the bank's capital stock, surplus, and undivided profits;

(4) A bank may not purchase life insurance policies for estate planning purposes except in connection with a compensation package;

(5) A bank's authority to hold life insurance on a key person ceases when the key person is no longer employed by the bank or no longer meets the definition of a key person.

History

Source: 20 SDR 33, effective September 5, 1993.
General Authority: SDCL 51A-2-13, 51A-4-42.
Law Implemented: SDCL 51A-4-42.

ARSD 20:07:18:04 Limitations on purchase of life insurance on borrowers

The purchase of cash value life insurance on borrowers by a bank is subject to the following limitations:

(1) The face value of the life insurance policy may not exceed the borrower's obligation to the bank; and

(2) A second beneficiary shall be named by the borrower who, if the borrower dies, shall receive any amount in excess of the obligations to the bank because of the repayment of the debt to the bank.

History

Source: 20 SDR 33, effective September 5, 1993.
General Authority: SDCL 51A-2-13, 51A-4-42.
Law Implemented: SDCL 51A-4-42.

ARSD 20:07:18:05 Limitations on purchase of life insurance in connection with benefits

In purchasing cash value life insurance in connection with employee compensation and benefit plans and deferred director fees programs, a bank may not hold the policies if no liability exists under the deferred compensation or fee plans unless the purchase is specifically approved by the director.

History

Source: 20 SDR 33, effective September 5, 1993.
General Authority: SDCL 51A-2-13, 51A-4-42.
Law Implemented: SDCL 51A-4-42.

ARSD 20:07:18:06 Financial information

Before purchasing a cash value life insurance policy, the board of directors shall evaluate the financial condition and rating, if any, of the insurance company based on current financial information. This evaluation and all subsequent evaluations shall be recorded in the minutes of the board of directors. The board shall continue to evaluate the company's financial condition and rating at least annually.

History

Source: 20 SDR 33, effective September 5, 1993; 21 SDR 194, effective May 18, 1995.
General Authority: SDCL 51A-2-13, 51A-4-42.
Law Implemented: SDCL 51A-4-42.

ARSD 20:07:18:07 Documentation

In purchasing cash value life insurance for key persons, the bank's board of directors shall document in its minutes the basis for the insurable interest and the basis for the amount of the insurance. The bank's board of directors shall also document in its minutes the basis for determining how that person meets the definition of a key person. In purchasing cash value life insurance in connection with employee compensation and benefit plans and deferred director fees programs, the bank's board of directors must approve and document the plans or programs, including the reasonableness of the plans or programs. The board's basis for its determination shall be documented within its minutes and is subject to review by the division.

History

Source: 20 SDR 33, effective September 5, 1993.
General Authority: SDCL 51A-2-13, 51A-4-42.
Law Implemented: SDCL 51A-4-42.

ARSD 20:07:18:08 Waiver

The director may waive any limitation in this chapter, except those in § 20:07:18:04, for policies purchased before September 5, 1993.

History

Source: 20 SDR 33, effective September 5, 1993.
General Authority: SDCL 51A-2-13, 51A-4-42.
Law Implemented: SDCL 51A-4-42.

Chapter 20:07:19 Mortgage lenders and mortgage brokers

ARSD 20:07:19:01 Repealed

Laws applicable to mortgage bankers.** Repealed.

History

Source: 21 SDR 194, effective May 18, 1995; repealed, 33 SDR 226, effective July 1, 2007.

ARSD 20:07:19:02 Licensing fees

The original, non-refundable, license fee for a mortgage lender is seven hundred fifty dollars, the original, non-refundable, license fee for a mortgage broker or mortgage brokerage is five hundred dollars and the original, non-refundable, registration fee for a mortgage loan originator is one hundred fifty dollars.

History

Source: 24 SDR 180, effective June 30, 1998; 30 SDR 193, effective June 15, 2004; 31 SDR 165, effective May 11, 2005; 33 SDR 226, effective July 1, 2007; 36 SDR 99, effective December 10, 2009.
General Authority: SDCL 54-14-16.
Law Implemented: SDCL 54-14-16.

ARSD 20:07:19:03 Renewal fees

The annual renewal fee for a mortgage lender is five hundred dollars, the annual renewal fee for a mortgage broker or mortgage brokerage is three hundred fifty dollars, and the annual renewal fee for a mortgage loan originator is seventy-five dollars. Any licensee or registrant that files for renewal after December first but before January first will pay a late fee, equal to twenty percent of the renewal fee, in addition to the renewal fee.

History

Source: 33 SDR 266, effective July 1, 2007; 36 SDR 99, effective December 10, 2009.
General Authority: SDCL 54-14-19.
Law Implemented: SDCL 54-14-18, 54-14-19.

ARSD 20:07:19:03.01 Nationwide mortgage licensing system and registry fees

An initial set-up fee of one hundred dollars for a company license, twenty dollars for each company branch location, and thirty dollars for each mortgage loan originator shall be paid to the nationwide mortgage licensing system and registry at the time of transition for existing licensees or at the time of application for a new licensee.

An annual processing fee shall be paid to renew each company, company branch, and mortgage loan originator license in the same amounts as described above.

A mortgage loan originator transfer fee of thirty dollars shall be paid each time a company requests to have a mortgage loan originator associated with its license through the nationwide mortgage licensing system and registry. This fee applies to the transfer of employment of a mortgage loan originator who is licensed through the system but employed by a different company.

The fees in this section are in addition to those established in §§ 20:07:19:02 and 20:07:19:03.

History

Source: 36 SDR 99, effective December 10, 2009.
General Authority: SDCL 54-14-31.
Law Implemented: SDCL 54-14-31.

ARSD 20:07:19:04 Application -- Prescribed form and required information

Any application for licensure or registration shall be provided by the division. An applicant must provide the following information as applicable:

(1) The applicant's name, address, date of birth, and social security number or taxpayer identification number as applicable;

(2) The proposed location of the business;

(3) The applicant's form and place of incorporation or organization, if applicable;

(4) The name and address of the sole proprietor; the name and address of each partner, member, officer, director, or any person performing similar functions; or the name and address of any person that owns 10 percent or more of a mortgage entity that is other than a sole proprietorship or partnership;

(5) Evidence of a surety bond;

(6) The qualifications and business history of the applicant and, if applicable, the business history of any partner, member, officer, director, shareholder or any person performing similar functions;

(7) A statement as to whether the applicant or, to the best of the applicant's knowledge, any shareholder, member, partner, officer, director, or any person performing similar functions, or employee of the applicant is currently under investigation, has been convicted of or has pleaded guilty to any felony or criminal offense involving fraud or dishonesty, or has been subject to any adverse civil judgment for any conduct involving fraudulent or dishonest dealing;

(8) The applicant's consent to a state and federal background investigation and two sets of the applicant's fingerprints on forms provided by the division. In the case of an applicant that is a corporation, partnership, limited liability company, association, or trust, each individual who has control of or involvement in the day to day operations of the applicant entity or who is the principal or manager shall consent to a state and federal background investigation and submit two sets of that individual's fingerprints on forms provided by the division. Refusal to consent to a background investigation constitutes grounds for the division to deny licensure to the applicant.

History

Source: 33 SDR 226, effective July 1, 2007; 34 SDR 200, effective January 29, 2008; 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 54-14-31.
Law Implemented: SDCL 54-14-14, 54-14-15, 54-14-22, 54-14-24.

ARSD 20:07:19:04.01 Change of control -- Application required

If there is a change of control of a licensee, the individual or entity assuming control of the licensee shall file an application with the division, on forms provided by the division and comply with the requirements and qualifications of an applicant as set forth in SDCL chapter 54-14 and the provisions of this chapter. Any change of control application shall be accompanied by a fee equal to the amount required for a renewal application as established in § 20:07:19:03.

For purposes of this section, change of control is defined as ownership of, or the power to vote, twenty-five percent or more of the outstanding voting shares of a licensee or controlling person.

History

Source: 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 54-14-31.
Law Implemented: SDCL 54-14-14, 54-14-19.

ARSD 20:07:19:05 Application -- Grounds for denial

In addition to the grounds for denial contained in § 20:07:19:04, the division may deny an application if the applicant has been convicted of forgery, embezzlement, obtaining money under false pretenses, theft, extortion, conspiracy to defraud, or other similar offenses, or of any crime involving moral turpitude in a court of competent jurisdiction in this state, or in any other state, territory, or district of the United States, or in any foreign jurisdiction.

Any applicant aggrieved by a denial issued by the director pursuant to this chapter may, at any time within thirty days from the date of written notice of the denial, request a hearing pursuant to SDCL chapter 1-26. Any request for hearing must be made in writing and postmarked within the thirty-day time period if sent via United States mail or must be received by the division within the thirty-day time period if sent via electronic mail or facsimile.

History

Source: 33 SDR 226, effective July 1, 2007; 34 SDR 200, effective January 29, 2008.
General Authority: SDCL 54-14-31.
Law Implemented: SDCL 54-14-14, 54-14-15.

ARSD 20:07:19:06 Repealed

Background investigations.** Repealed.

History

Source: 33 SDR 226, effective July 1, 2007; repealed, 36 SDR 208, effective June 30, 2010.

ARSD 20:07:19:07 Surety bonds

The amount of the surety bond required in SDCL 54-14-24 shall be established according to the following scale based upon the dollar amount of the mortgage loans originated, brokered, or serviced, as the case may be, with respect to property in South Dakota during the preceding calendar year. The numbers preceding the colon represent the dollar amount of the loans and the numbers after the colon represent the amount of bond required.

Less than $ 25,000,000: $25,000

$25,000,001 to $100,000,000: $35,000

Over $100,000,000: $50,000

History

Source: 33 SDR 226, effective July 1, 2007; 34 SDR 200, effective January 29, 2008; 34 SDR 322, effective June 30, 2008; 36 SDR 208, effective June 30, 2010.
General Authority: SDCL 54-14-24.
Law Implemented: SDCL 54-14-24.

ARSD 20:07:19:08 Records required to be kept -- Duration

The following records shall be kept for a period of at least five years, and shall be available for inspection, examination, and copying by the division:

(1) A record of all cash, checks, or other monetary instruments received in connection with each mortgage loan application showing the identity of the payor, date received, amount, and purpose;

(2) A record showing a sequential listing of checks written for each bank account relating to the licensee's business as a mortgage broker or mortgage lender, showing at least the payee, amount, date, and purpose of payment, including identification of the loan to which it relates, if any. The licensee shall reconcile the bank accounts monthly;

(3) A file for each mortgage loan application that contains, as applicable, the applicant's name, date of application, name of person taking the application, HUD-1 Settlement Statement, copies of all agreements or contracts with the applicant, including any commitment and lock-in agreements, copies of any appraisals conducted, and all disclosures required by state and federal law signed by the borrower;

(4) Copies of all contracts, agreements, and escrow instructions to or with any depository;

(5) A record of any contact between the mortgage broker or mortgage loan originator and the borrower relating to the rate, terms, or conditions of the loan; and

(6) A list of all mortgage loan originators, as defined in SDCL 54-14-1(7), along with documentation for each loan originator indicating each state in which the originator works and makes loans.

Any records required by this section may be maintained in the form of electronically encoded data available for examination on the basis of computer printed reproduction, video display, or other medium that is readily convertible by the division into legible, tangible documents.

Any record required by this section shall be prepared in accordance with generally accepted accounting principles, if applicable.

History

Source: 33 SDR 226, effective July 1, 2007; 34 SDR 322, effective June 30, 2008; 36 SDR 208, effective June 30, 2010.
General Authority: SDCL 54-14-26, 54-14-31.
Law Implemented: SDCL 54-14-26, 54-14-27.

ARSD 20:07:19:09 Examination of licensees

The division may annually, or as often as the director considers necessary, conduct an examination of business records, accounts, and any other documents required to be kept by § 20:07:19:08, of any licensee licensed pursuant to SDCL chapter 54-14. The director may charge back to the licensee any cost associated with an on-site examination. The director may waive an on-site examination and only require an annual self-examination. If a licensee conducts a self-examination, the licensee shall provide any information requested under oath and on forms provided by the division by order or rule. The provisions of SDCL 51A-2-35 apply to records and examination reports required under this chapter.

History

Source: 33 SDR 226, effective July 1, 2007.
General Authority: SDCL 54-14-26.
Law Implemented: SDCL 54-14-26.

ARSD 20:07:19:10 Proof of experience

20:07:19 :10. Proof of experience. Repealed.

History

Source: 33 SDR 226, effective July 1, 2007; repealed, 39 SDR 55, effective October 8, 2012.

ARSD 20:07:19:11 Continuing education requirements

Continuing education for mortgage loan originators.** In order to meet the annual continuing education requirements referred to in SDCL 54-14-13.2, a licensed mortgage loan originator shall complete at least eight hours of education approved according to the standards established in 12 U.S.C. 5105(b) as of January 1, 2009.

History

Source: 33 SDR 226, effective July 1, 2007; 34 SDR 322, effective June 30, 2008; 36 SDR 99, effective December 10, 2009.
General Authority: SDCL 54-14-31.
Law Implemented: SDCL 54-14-13.2.

ARSD 20:07:19:12 Pre-licensing education of mortgage loan originators

In order to meet the pre-licensing education requirement in SDCL 54-14-13.1(4), an individual shall complete at least twenty hours of education approved according to the standards established in 12 U.S.C. 5104 (c) as of January 1, 2009.

History

Source: 36 SDR 99, effective December 10, 2009; 39 SDR 55, effective October 8, 2012.
General Authority: SDCL 54-14-31.
Law Implemented: SDCL 54-14-13.1(4).

ARSD 20:07:19:13 Testing of mortgage loan originators

In order to meet the written test requirement referred to in SDCL 54-14-13.1(5), an individual shall pass a qualified written test in accordance with the standards established in 12 U.S.C. 5104(d) as of January 1, 2009.

History

Source: 36 SDR 99, effective December 10, 2009.
General Authority: SDCL 54-14-31.
Law Implemented: SDCL 54-14-13.1(5).

ARSD 20:07:19:14 Challenge process

A mortgage licensee may challenge information entered into the nationwide mortgage licensing system and registry by the division. Any challenge must be in writing and identify the information being challenged and provide documentation to support the challenge. The division shall respond to any challenge in writing within 30 days from the date a challenge was received. A licensee may request a hearing pursuant to SDCL chapter 1-26 to further challenge information entered by the division.

A challenge filed in response to the denial of a license application or renewal shall be filed under the procedure established in § 20:07:19:05.

History

Source: 36 SDR 99, effective December 10, 2009.
General Authority: SDCL 54-14-34.
Law Implemented: SDCL 54-14-34.

ARSD 20:07:19:15 Reports of condition

Each licensee required to submit a report of condition pursuant to SDCL 54-14-36 shall provide to the nationwide mortgage licensing system and registry, loan activity data for the licensee's operations in South Dakota, to include loan activity performed by any licensed mortgage loan originator employed by a mortgage lender or mortgage brokerage licensee.

Any information provided by a licensee pursuant to this section is confidential subject to the information sharing provisions in SDCL 54-14-35.

History

Source: 36 SDR 208, effective June 30, 2010.
General Authority: SDCL 54-14-36.
Law Implemented: SDCL 54-14-36.

Chapter 20:07:20 Money lending licenses

ARSD 20:07:20:01 Original license fee

Any person who applies for an original license shall include a non-refundable license fee of one thousand dollars with the application.

History

Source: 24 SDR 180, effective June 30, 1998; 30 SDR 193, effective June 15, 2004; 31 SDR 165, effective May 11, 2005; 35 SDR 285, effective June 9, 2009.
General Authority: SDCL 54-4-40.
Law Implemented: SDCL 54-4-40.

ARSD 20:07:20:02 Renewal fee

The annual renewal fee for any person licensed under SDCL 54-4-40 is eight hundred dollars and is non-refundable.

History

Source: 24 SDR 180, effective June 30, 1998; 30 SDR 193, effective June 15, 2004; 31 SDR 165, effective May 11, 2005; 35 SDR 285, effective June 9, 2009.
General Authority: SDCL 54-4-45.
Law Implemented: SDCL 54-4-45.

ARSD 20:07:20:03 Records required to be kept -- Duration

The following records shall be kept for a period of at least three years, and shall be available for investigation, examination, and copying by the division:

(1) A report of income and financial condition of the licensee;

(2) A list of all owners, members, partners, directors, officers, or twenty-five percent or more owners or shareholders of the licensee;

(3) A record of each loan made that contains the loan agreement, a record of all loan proceeds dispersed, payments received, documentation of Regulation Z compliance, customer identification program documentation, and Office of Foreign Asset Control (OFAC) reporting documentation;

(4) A record of any renewal, rollover, or flip of any loan and required principal reduction;

(5) Documentation of any down payment, check, title document, account authorization, or assignment of wages taken as security from a borrower;

(6) A record of any liens or title filings and release of the same upon satisfaction of each loan.

Any records required by this section may be maintained in the form of electronically encoded data for investigation and examination in the form of computer printed reproduction, video display, or other medium that is readily convertible by the division into legible, tangible documents.

Any record required by this section shall be prepared in accordance with generally accepted accounting principles, if applicable.

History

Source: 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 54-4-38(3).
Law Implemented: SDCL 54-4-40, 54-4-43, 54-4-57.

Chapter 20:07:21 Money transmission licenses

ARSD 20:07:21:01 Original filing fees

Any person who applies for an original license pursuant to SDCL chapter 51A-17 shall include a nonrefundable application fee of five hundred dollars and an original license fee of one thousand dollars with the application.

History

Source: 30 SDR 193, effective June 15, 2004; 31 SDR 165, effective May 11, 2005; 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 51A-17-16.
Law Implemented: SDCL 51A-17-16.

ARSD 20:07:21:02 Annual renewal fee

The annual renewal fee for any person licensed under SDCL chapter 51A-17 is eight hundred dollars.

History

Source: 30 SDR 193, effective June 15, 2004; 31 SDR 165, effective May 11, 2005; 34 SDR 322, effective June 30, 2008; 36 SDR 99, effective December 10, 2009.
General Authority: SDCL 51A-17-19.
Law Implemented: SDCL 51A-17-19.

Chapter 20:07:22 Trust companies

ARSD 20:07:22:01 Supervision fee schedule

20:07:22 :01. Supervision fee schedule. A state-chartered trust company shall pay an annual fee for supervision at the rate of seven cents per $10,000 of total assets under management, administration, or custody, as reported as of the end of December. However, the minimum annual fee is $3,750 and the maximum annual fee is $20,000 for private trust companies and the minimum annual fee is $4,500 and the maximum annual fee is $30,000 for public trust companies. Trust companies shall also pay the actual cost for each on-site examination and the additional supervision costs for any trust company operating under an enforcement action. For purposes of this section, the term enforcement action does not include a resolution adopted by a trust company to implement findings identified through an examination conducted by the division.

The division shall maintain on its website a separate fee calculator for public and private trust companies to be used for the purpose of calculating the annual supervision fee owed by each trust company. The formulas used to operate the fee calculator shall be available upon request.

History

Source: 30 SDR 193, effective June 15, 2004; 31 SDR 87, effective December 19, 2004; 36 SDR 99, effective December 10, 2009; 39 SDR 55, effective October 8, 2012.
General Authority: SDCL 51A-2-36, 51A-6A-33.
Law Implemented: SDCL 51A-6A-33.

ARSD 20:07:22:02 Remittance

A state-chartered trust company shall remit the annual fee with the report of trust assets to the division within 30 days following December 31.

History

Source: 30 SDR 193, effective June 15, 2004; 31 SDR 87, effective December 19, 2004.
General Authority: SDCL 51A-2-36, 51A-6A-33.
Law Implemented: SDCL 51A-6A-33.

ARSD 20:07:22:03 Private trust company defined

A private trust company is one that does not engage in trust company business with the general public or otherwise hold itself out as a trustee or fiduciary for hire by advertising, solicitation, or other means and instead operates for the benefit of a family or families, regardless of whether compensation is received or anticipated.

History

Source: 36 SDR 208, effective June 30, 2010.
General Authority: SDCL 51A-2-13.
Law Implemented: SDCL 51A-6A-1.

ARSD 20:07:22:04 Trust administration defined

For purposes of SDCL 51A-6A-11.1, trust administration means that at least three of the following are performed wholly or partly in this state for accounts under the management, administration, or custody of the trust company:

(1) Annual account reviews;

(2) Annual investment reviews;

(3) Trust accountings;

(4) Account correspondence;

(5) Completing trust account tax returns;

(6) Distributing account statements; or

(7) Depositing uninvested customer funds into a bank chartered under SDCL title 51A or into another federally insured bank or credit union, headquartered in this state or having a branch located in this state.

Notwithstanding the definition above, trust administration as set forth in SDCL subdivision 51A-6A-11.1(4) may be satisfied by other means if the director determines the nature and degree of risks presented by the trust company are low, based upon a review of the size, nature, and number of accounts administered by the trust company and the number of employees or persons performing services for the trust company in this state.

If the size, risk profile, or rate of growth of a trust company changes, the director may require that additional administration be performed in this state to satisfy SDCL subdivision 51A-6A-11.1(4).

History

Source: 36 SDR 208, effective June 30, 2010; 39 SDR 55, effective October 8, 2012; 47 SDR 68, effective December 9, 2020.
General Authority: SDCL 51A-6A-11.1.
Law Implemented: SDCL 51A-6A-11.1, 55-3-39

Chapter 20:07:23 Mobile branch banks

ARSD 20:07:23:01 Definitions

Terms defined in SDCL 51A-1-2 have the same meaning when used in this chapter. The use by a bank of a third party unaffiliated courier service does not constitute a mobile branch bank.

History

Source: 32 SDR 38, effective September 6, 2005; 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 51A-2-14(3)(4).
Law Implemented: SDCL 51A-1-2(19), 51A-2-14(3)(4).

ARSD 20:07:23:02 Mobile branch banks requiring only notification to director

Mobile branch banks requiring only notification to director** . Any bank desiring to establish a mobile branch bank in the municipality in which the bank has an existing permanent bank or branch bank facility or in any county in this state that does not have a permanent bank or branch bank facility at the time the mobile branch bank is first established shall submit a letter of notice to the director that includes the following:

(1) Statement of the area in which the mobile branch bank will operate; and

(2) Statement describing the operation of the mobile branch bank.

History

Source: 32 SDR 38, effective September 6, 2005; 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 51A-2-14(3)(4).
Law Implemented: SDCL 51A-1-2(19), 51A-2-14(3)(4).

ARSD 20:07:23:03 Mobile branch banks requiring application to director

Mobile branch banks requiring application to director** . Any bank desiring to establish a mobile branch bank outside the municipality in which the bank has an existing permanent bank or branch bank facility shall, prior to the establishment of such branch, file a written application with the director on forms provided by the division.

Any application filed with the director for the establishment of a mobile branch bank shall follow the application procedure established in SDCL 51A-2-16 and shall be evaluated according to the criteria in SDCL 51A-3-9.

History

Source: 32 SDR 38, effective September 6, 2005; 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 51A-2-14(3)(4).
Law Implemented: SDCL 51A-1-2(19), 51A-2-14(3)(4), 51A-2-16, 51A-3-9.

ARSD 20:07:23:04 Repealed

Commission approval of application** . Repealed.

History

Source: 32 SDR 38, effective September 6, 2005; repealed, effective 34 SDR 322, effective June 30, 2008.

ARSD 20:07:23:05 Notice required to discontinue mobile branch banks

Notice required to discontinue mobile branch banks** . At least 30 days before terminating an existing mobile branch bank, the bank shall submit a letter of notice to the director that includes the following:

(1) Statement of the area which will no longer be served;

(2) Statement of the impact of the discontinuance of the mobile branch bank within the area previously served; and

(3) Statement of reasons for the termination of the mobile branch bank.

Any change in the locations to which a mobile vehicle travels is not the termination of an existing mobile branch bank for purposes of this section.

History

Source: 32 SDR 38, effective September 6, 2005; 34 SDR 322, effective June 30, 2008.
General Authority: SDCL 51A-2-14(3)(4).
Law Implemented: SDCL 51A-1-2(19), 51A-2-14(3)(4).