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Can you summarize SDCL Chapter 51A-14?
BANKS AND BANKING > Reorganization Of Banks
Short Summary
The provided legal document content pertains to the reorganization of banks. It outlines the procedures and requirements for various scenarios such as mergers, consolidations, purchases of assets, and assumption of liabilities by other banks. The document specifies that dissident shareholders’ bank stock valuation should be established according to specific sections of the law. In non-emergency situations, if a bank has been merged, consolidated, or its assets purchased and liabilities assumed by another bank, the directors of the bank must initiate proceedings to legally dissolve the bank’s charter within thirty days. The approval of the merger, consolidation, or purchase of assets and assumption of liabilities by the director also constitutes approval of the voluntary liquidation. However, a two-thirds vote of the outstanding stock of the liquidating bank is required for the proposal to liquidate and dissolve. The document also allows banks to apply for reorganization as a national bank under the laws of the United States, subject to certain requirements and procedures. Additionally, it permits banks to merge or consolidate with other state banks, national banks, or savings and loan associations, with specific sections governing the application process. The document also addresses emergency takeovers of financial institutions to protect depositors and the public from unsound practices, allowing the commission to waive certain requirements. Lastly, it allows banks to purchase the assets and assume the liabilities of other state banks, national banks, or savings and loan associations. Overall, the document provides guidance on the reorganization of banks and the necessary steps and considerations involved.
Whom does it apply to?
Banks, directors of banks, dissident shareholders
What does it govern?
Reorganization of banks
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