51A-6A-19. Determining capital--Minimum--Purpose of capital--Fidelity bond and liability insurance policy.
For purposes of this section, the capital of a trust company is the total of the aggregate par value of its outstanding shares of capital stock or ownership units, its surplus, and its undivided profits. The minimum capital of a trust company is two hundred thousand dollars. The director may require that the trust company have more capital than the amount specified if the director determines that the amount and character of the anticipated business of the trust company and the safety of the customers so require. This chapter recognizes that capital for a trust company serves a different purpose than does capital for a bank. It is not intended that capital requirements for trust companies be judged by the same standards as banks. Basic protection for fiduciary clients of a trust company shall be provided by the purchase of a fidelity bond and a director's and officer's liability insurance policy. The bond and insurance shall be in an amount of not less than one million dollars each. The trust company shall give notice of cancellation or nonrenewal of the bond or insurance policy to the director within ten days of the receipt of cancellation or nonrenewal. Except as may be provided elsewhere in this chapter, no trust company may reduce voluntarily its capital stock or ownership units or surplus below the amount required in this section.
Source: SL 1995, ch 268, §17; SL 2002, ch 220, §2; SL 2006, ch 243, §2; SL 2008, ch 258, §8; SL 2013, ch 239, §3.
Structure South Dakota Codified Laws
Chapter 06A - Creation Of Trust Companies
Section 51A-6A-1 - Definitions.
Section 51A-6A-2 - Confidential information.
Section 51A-6A-3 - "Community" defined.
Section 51A-6A-4 - Application for incorporation--Approval procedure--Emergency procedure.
Section 51A-6A-5 - Considerations in ruling on application-Proceedings on application.
Section 51A-6A-6 - Application fee.
Section 51A-6A-7.1 - Corporation laws applied.
Section 51A-6A-8 - Amendment of articles--Extension of existence.
Section 51A-6A-9 - Starting date of trust company existence--Commencement of business.
Section 51A-6A-10 - Statement of payment of capital--Certificate of organization.
Section 51A-6A-11 - Authority to transact business required--Violation as misdemeanor.
Section 51A-6A-11.2 - Office space requirements.
Section 51A-6A-11.3 - Approval of other office space requirements.
Section 51A-6A-12 - List of owners--Annual submission to director--Verification of list.
Section 51A-6A-13 - Governing board--Membership--Election--Vacancies.
Section 51A-6A-14 - Officers of governing board--Bond required.
Section 51A-6A-15 - Meetings of governing board--Examination and audit of books and records.
Section 51A-6A-16 - Oath of board members.
Section 51A-6A-20 - Payment of subscriptions--Reduction of common stock.
Section 51A-6A-21 - Transferring stock and ownership units.
Section 51A-6A-22 - Increasing capital stock or ownership units.
Section 51A-6A-23 - Registration of capital stock or ownership units.
Section 51A-6A-24 - Issuance and retirement of preferred stock.
Section 51A-6A-25 - Rights and liability of preferred stockholders--Dividends.
Section 51A-6A-26 - Issuance of convertible or nonconvertible capital notes or debentures.
Section 51A-6A-27 - Dividends not permitted from required capital.
Section 51A-6A-28 - Dividends from undivided profits or surplus.
Section 51A-6A-29 - Powers of trust company.
Section 51A-6A-29.1 - Permissible business of trust companies.
Section 51A-6A-33 - Examination expenses paid by trust companies--Fees.
Section 51A-6A-37 - Revocation of franchise for failure to comply with lawful requirements.
Section 51A-6A-38 - Hearing on revocation of trust authority.
Section 51A-6A-39 - Confidentiality of information generated by examination--Disclosure--Hearing.
Section 51A-6A-41 - Insolvency defined.
Section 51A-6A-43 - Plan for reorganization of insolvent trust company.
Section 51A-6A-44 - Appointment of receiver--Bond--Qualifications--Report--Removal.
Section 51A-6A-45 - Powers and duties of receiver--Order of payment of liabilities.
Section 51A-6A-45.1 - Liability of receiver.
Section 51A-6A-46 - Periodic examination of trust company in the hands of a receiver.
Section 51A-6A-46.2 - Disclosure of confidential information in certain actions.
Section 51A-6A-48 - Contents of notice of proposed acquisition.
Section 51A-6A-49 - Reason for disapproval of acquisition.
Section 51A-6A-51 - Necessity of execution or delivery of deed for merger or consolidation.
Section 51A-6A-52 - Fiduciary capacity of successor trust company.
Section 51A-6A-53 - Name of trust company--Name change.
Section 51A-6A-58 - Establishment of trust service offices--Application.
Section 51A-6A-61 - Membership in federal reserve bank.
Section 51A-6A-62 - Depositing securities into federal reserve bank.
Section 51A-6A-63 - Registering investments in name of nominee--Liability of trust company.
Section 51A-6A-64 - Common trust funds and collective investment funds.
Section 51A-6A-67 - Trust company receivership and liquidation captive insurance company fund.