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Can you summarize SDCL Chapter 51A-10?
BANKS AND BANKING > Bank Deposits
Short Summary
This legal document, as per the South Dakota Codified Laws, governs bank deposits. It allows banks to substitute or exchange eligible securities of similar nature and character for securities pledged as collateral for funds of governmental subdivisions. The substitution or exchange can be done at any time deemed advisable by the bank, without requiring the consent of the depositor or any officers of the depositors. However, there are two conditions that must be met for such substitution or exchange to occur: (1) the substituted or exchanged securities must have a market value equal to or greater than the market value of the securities being released, and (2) the holder or custodian of the securities must provide a receipt specifically describing and identifying both the substituted or exchanged securities and the securities being returned to the depository bank. The document also states that if a bank borrows money on its bills payable and has permission to appropriate and apply any credit balance due to the borrowing bank, the money received on such bills payable shall be deemed ‘deposits.’ The document defines various types of deposits, such as ‘deposits subject to check,’ ‘dividends unpaid,’ ‘savings deposits,’ ‘special deposits,’ ’trust deposits,’ ‘certified checks,’ ‘cashier’s checks outstanding,’ ‘demand certificates of deposit,’ ’time certificates of deposit,’ ‘collections made but not remitted,’ and ‘due to other banks.’ It excludes ‘overdrafts on correspondents’ or similar terms. The document also mentions that a bank may operate its deposit account in the name of a minor or in the name of two or more persons, one or more of whom are minors, with the same effect upon its liability as if such minors were of full age. Additionally, it is a Class 2 misdemeanor for any officer or employee of any bank to certify any check, draft, or order drawn upon such bank unless the person drawing the same has on deposit an amount of money equal to the amount specified therein. Any check, draft, or order so certified by a duly authorized officer of such bank shall be a good and valid obligation of such bank. The document also governs preferential deposits in banks, outlining specific scenarios where a bank may deposit its assets with the treasurer of the United States, qualify as a depository for federal funds and bankruptcy court funds, or pledge securities to guarantee deposit of out-of-state municipal, school district, county, or state funds. It grants paramount, preferred, and perfected first lien on the bank assets to the public deposits preferred by this section.
Whom does it apply to?
Banks, depositors
What does it govern?
Bank deposits
What are exemptions?
No specific exemptions are mentioned in this document.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
South Dakota