51A-4-9. Real property authorized to be held by bank--Maximum book value of premises.
Except as provided in §§51A-4-10, a bank may lease, purchase, hold, and convey in its own name, or through investment in a corporation organized solely to lease such property to it, only the following real property:
(1)That which it occupies or intends to occupy for the transaction of its business or which it partly so occupies and partly rents or leases to others;
(2)That which is used for accommodation in the transaction of the bank's business, including parking, storage and preservation of records, and data processing facilities; or
(3)That which is used for housing or recreation accommodations for attracting and retaining employees.
All such accommodations shall be of a reasonable nature.
The book value of a bank's premises may not exceed in the aggregate one hundred percent of the bank's capital stock and surplus. However, the director may authorize a larger investment, upon formal application and after an investigation, if the sound conduct of banking will not be adversely affected by the larger investment. For the purposes of this section, book value includes those amounts which are to be reported as premises and fixed assets according to the instructions for consolidated reports of condition filed with the division.
Source: SDC 1939, §§6.0410 (1), 6.0430; SL 1964, ch 12; SDCL §§51-11-17, 51-11-18; SL 1969, ch 11, §4.4; SL 1981, ch 346, §29; SL 1986, ch 400, §13; SL 1988, ch 377, §84; SDCL §51-18-4; SL 1991, ch 390, §5; SL 1999, ch 235, §1; SL 2012, ch 252, §13; SL 2020, ch 4, § 27.
Structure South Dakota Codified Laws
Chapter 04 - General Powers Of Banks
Section 51A-4-1 - Miscellaneous banking powers.
Section 51A-4-3 - Operation of travel agency.
Section 51A-4-4 - Insurance business authorized.
Section 51A-4-5 - Certificate of authority required to engage in banking business--Misdemeanor.
Section 51A-4-6 - Order to cease and desist for violation--Right to appeal.
Section 51A-4-7 - Arrest and prosecution for violation.
Section 51A-4-8 - Deposit insurance required--Federal reserve system membership authorized.
Section 51A-4-9 - Real property authorized to be held by bank--Maximum book value of premises.
Section 51A-4-12 - Checks settled at par--Payment from reserve deposits.
Section 51A-4-13 - Borrowing money by bank--Pledge of assets.
Section 51A-4-14 - "Bills payable" issued for money borrowed by bank--Record of amount borrowed.
Section 51A-4-15 - Rediscounting of negotiable paper--Limitation on pledge of assets as security.
Section 51A-4-16 - Sale, transfer, or assignment of loan participations.
Section 51A-4-17 - Sale of assets of bank.
Section 51A-4-18 - Grounds and procedure for nonobservance of banking hours--Extension of hours.
Section 51A-4-19 - Change in banking hours--Notice to division.
Section 51A-4-20.1 - "Community development corporation" defined.
Section 51A-4-20.2 - Qualification of community development corporation as permissible investment.
Section 51A-4-20.3 - Promulgation of rules for investment in community development corporations.
Section 51A-4-20.4 - Investments to promote public welfare authorized--Limitations.
Section 51A-4-22 - Purchase of retail installment contract--Terms and effect of agreement.
Section 51A-4-23 - Leasing of personal property by bank--Terms and conditions.
Section 51A-4-24 - Factoring--Applicability of lending limit provisions.
Section 51A-4-25 - Bank investments--Restrictions set by rule--Limitations.
Section 51A-4-25.1 - Annuity defined.
Section 51A-4-27 - Investments in agricultural credit corporations and livestock loan companies.
Section 51A-4-28 - Restricted investment in mortgage banking companies authorized.
Section 51A-4-30 - Investment in federally sponsored housing loans.
Section 51A-4-42 - Restrictions on purchase of cash value life insurance contracts.
Section 51A-4-43 - Access to motor vehicle title and lien information on state's computer system.
Section 51A-4-44 - Financial institution and services defined.
Section 51A-4-45 - Contracts for services.
Section 51A-4-46 - Debt cancellation contracts and debt suspension contracts--Fee.