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Can you summarize SDAR Chapter 20:07:03?
BANKING (LABOR AND REGULATION) > Internal management of banks.
Short Summary
This legal document, part of the Administrative Rules of South Dakota, pertains to the internal management of banks. It authorizes banks to purchase or hold certain investments, including stock in federal home loan banks and revenue bonds issued by the United States, states, territories, political subdivisions, public agencies, or instrumentalities. Banks are also allowed to acquire securities through foreclosure or compromise, use interest rate future contracts as a hedge, invest in corporate debt obligations with top three ratings, participate in export programs, and purchase annuities within specified limits. The document provides the specific legal references and effective dates for these authorizations. It also establishes requirements for board meetings, borrowing money and pledging assets, charge-off of assets, involvement of board members, accounting principles, and issuance of securities. Additionally, it mandates the furnishing of bankers’ blanket bonds, record-keeping of charge-offs and recoveries, and maintenance of an allowance for loan and lease losses. The document does not mention any specific exemptions or penalties related to these provisions.
Whom does it apply to?
Banks
What does it govern?
Internal management of banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
South Dakota