Ask Reggi Your Question Now
Can you summarize SDAR Chapter 20:07:16?
BANKING (LABOR AND REGULATION) > Bank subsidiaries.
Short Summary
The provided legal document outlines the requirements and regulations for special bank subsidiaries in South Dakota. It states that a special bank subsidiary must meet several criteria, including being adequately capitalized, physically separate and distinct from the parent bank, conducting business independently, and maintaining separate accounting procedures and corporate records. The application for operation of the subsidiary must be approved by the director. The document also mentions limitations on the amount of capital a bank can invest in special bank subsidiaries without written permission. Additionally, it defines a special bank subsidiary as a subsidiary engaged in insurance underwriting, real estate development, or acting as a surety or guarantor. The document does not mention any specific exemptions or penalties. Overall, these regulations apply to state-chartered banks and their subsidiaries, with the exception of subsidiaries formed for the sole purpose of holding repossessed property.
Whom does it apply to?
State-chartered banks and their subsidiaries
What does it govern?
Bank subsidiaries
What are exemptions?
Subsidiaries 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
What are the Penalties?
No specific penalties mentioned
Jurisdiction
South Dakota