South Dakota Codified Laws
Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations
Section 51A-3-6 - Transfers to surplus.

51A-3-6. Transfers to surplus.
One-tenth of the net profit for any dividend period shall be carried to the surplus fund until such fund shall amount to twenty percent of the capital stock or members' equity. Any losses sustained in excess of undivided profits may be charged to the surplus account, but no dividends shall thereafter be declared or paid until the surplus fund shall amount to twenty percent of the capital stock or members' equity.

Source: SL 1891, ch 27, §13; RCivC 1903, §859; SL 1909, ch 222, art 2, §36; SL 1911, ch 255, §14; SL 1915, ch 102, art 2, §40; RC 1919, §§8988, 9044; SDC 1939, §6.0439; SL 1953, ch 14, §1; SDCL, §51-4-23; SL 1969, ch 11, §3.8; SDCL, §§51-17-5.1, 51-17-9; SL 2004, ch 289, §9.

Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 51A - Banks and Banking

Chapter 03 - Organization, Applications, And Capital Structure Of Banking Corporations

Section 51A-3-1 - Corporation laws applicable to banks.

Section 51A-3-1.1 - Bank organized as limited liability company--Rules.

Section 51A-3-2 - Articles of incorporation or articles of organization--Content--Name of bank--Capital stock or members' equity.

Section 51A-3-3 - Incorporators of bank.

Section 51A-3-4 - Minimum capital.

Section 51A-3-5 - Sale price of original stock issue or original issue of members' equity--Excess credited to surplus.

Section 51A-3-6 - Transfers to surplus.

Section 51A-3-7 - Applications--Fee.

Section 51A-3-8 - Acceptance of application for charter.

Section 51A-3-9 - Conditions to be considered in ruling on application.

Section 51A-3-10 - Hearing on application.

Section 51A-3-12 - Endorsement and filing of approved articles--Notice of disapproval.

Section 51A-3-13 - Subscription of shares--Minimum collection--Refund on disapproval of application.

Section 51A-3-14 - Call by incorporators for full payment of subscriptions--Issuance of certificate of authority by director--Commencement of business within one year.

Section 51A-3-15 - Applications for branch banks and detached drive-in facilities--Applicable provisions.

Section 51A-3-16 - Preferred stock, capital notes, and debentures--Director approval of issuance--Terms of issue--Director approval of retirement or payment.

Section 51A-3-17 - Preferred stock, capital notes, and debentures outstanding--Restrictions on dividends.

Section 51A-3-17.1 - Dividends--Definition.

Section 51A-3-18 - Dividends--Restrictions and requirements for declaration.

Section 51A-3-19 - Approval of director required for unusually large dividends.

Section 51A-3-20 - Recovery of dividends paid when capital impaired.

Section 51A-3-21 - Net profits defined.

Section 51A-3-22 - Amendment of articles of incorporation--Changes requiring approval of director--Filing of amendments.

Section 51A-3-23 - Extension of charter.

Section 51A-3-24 - Reporting transfers of stock.

Section 51A-3-25 - Change in control of bank.

Section 51A-3-26 - Lien on shares--Enforcement--Marking of certificates.

Section 51A-3-27 - Purchase or purchase money loans on security of own stock prohibited--Exception.

Section 51A-3-28 - Credit of dividends, interest, or profits on indebtedness--Foreclosure of lien.

Section 51A-3-30 - Adoption and approval of bylaws.

Section 51A-3-31 - Indemnification of officers, directors, or employees.

Section 51A-3-32 - Board of directors--Number of members--Citizenship requirements--Election.

Section 51A-3-33 - Removal of directors--Vote required.

Section 51A-3-34 - Board of directors--Meetings.

Section 51A-3-35 - Election of officers--Terms--Vacancies.

Section 51A-3-36 - Names of officers and information forwarded to director--Vacancy on refusal to confirm.

Section 51A-3-37 - Bonds of officers and employees.

Section 51A-3-38 - Insurance protection.

Section 51A-3-39 - Amount of bonds and insurance prescribed by bank directors--Approval by director of division.