AN ACT
ENTITLED, An Act to create an exception to the loan or credit limitations of state chartered banks.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 51A-12 be amended by adding thereto a NEW SECTION to read as follows:
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 51A-12 be amended by adding thereto a NEW SECTION to read as follows:
A state chartered bank in satisfactory condition, with the consent of its governing board, may
request an exception to the loan or credit limitation as provided in § 51A-12-2 from the director. The
bank shall apply for such an exception on forms prescribed by the director. The director may approve
the exception if the loan is not on the loan watch list or problem loan report of the bank, or classified
at the most recent regulatory examination, and the loan shall be:
(1) Fully secured by the fair market value of the collateral and may not exceed one hundred
percent of the discounted value assigned by the bank to the collateral;
(2) An agricultural loan in the bank's normal trade area; and
(3) Originated by the requesting bank.
No loan approved under this section may exceed an amount greater than the sum of twenty-five
percent of the bank's capital stock or members' equity, surplus, and undivided profits. Such limit
shall be determined on the basis of the bank's quarterly report of condition for the immediately
previous calendar quarter and remain in effect until the loan expires as provided in this Act. The
aggregate balance of all loans or extensions of credit made by a bank pursuant to this section may
not exceed one hundred percent of the bank's tier one leverage capital.
Section 2. That chapter 51A-12 be amended by adding thereto a NEW SECTION to read as follows:
Section 2. That chapter 51A-12 be amended by adding thereto a NEW SECTION to read as follows:
Any exception granted by the director under this Act expires when the agricultural operating loan
matures or twelve months after the exception is granted, whichever occurs first. A new exception
An Act to create an exception to the loan or credit limitations of state chartered banks.
request shall be submitted prior to the renewal of the agricultural operating loan if the loan to be renewed would exceed the loan or credit limitation as provided in § 51A-12-2, unless otherwise approved by the director.
An Act to create an exception to the loan or credit limitations of state chartered banks.
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I certify that the attached Act originated in the
SENATE as Bill No. 158
____________________________
Secretary of the Senate ____________________________
President of the Senate
Attest:
____________________________
Secretary of the Senate
____________________________
Attest:
____________________________
Chief Clerk
Senate Bill No. 158 File No. ____ Chapter No. ______ |
Received at this Executive Office this _____ day of _____________ ,
20____ at ____________ M.
By _________________________
for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
____________________________
Governor STATE OF SOUTH DAKOTA, ss.
Office of the Secretary of State
Filed ____________ , 20___
____________________________ Secretary of State
By _________________________ |
