51A-10-1      "Deposit" or "deposits" defined.
51A-10-2      Minors' accounts.
51A-10-3      Deposits in name of two or more persons.
51A-10-4      Deposits in trust for another.
51A-10-5      Tax liability on payments to survivors of deposits in name of two or more persons or in trust for another.
51A-10-6      Statement of account between bank and depositor--Limitation on depositor's recourse after statement rendered.
51A-10-7      Duty of depositor to examine statement of account and vouchers.
51A-10-8      Misdemeanor to certify check where drawer's funds insufficient.
51A-10-9      Preferential deposits.
51A-10-10      Substitution or exchange of securities deposited to qualify as depository for funds of governmental subdivisions.
51A-10-11      Loans prohibited when reserve deficient.

51A-10-1. "Deposit" or "deposits" defined.

The word "deposit" or "deposits" shall be construed to be the unpaid balance of money or its equivalent, including "deposits subject to check"; "dividends unpaid"; "savings deposits"; "special deposits"; "trust deposits"; "certified checks" and "cashier's checks outstanding"; "demand certificates of deposit"; "time certificates of deposit"; "collections made but not remitted"; and "due to other banks," on which the bank is primarily liable except "overdrafts on correspondents"; or other terms of like import. If any bank has borrowed money on its bills payable, pursuant to a contract which grants permission to the loaning bank to appropriate and to apply any credit balance which the books of the loaning bank show to be due or owing to the borrowing bank, to be credited on such bills payable without regard to the date of maturity thereof, the money received on such bills payable by such borrowing banks shall be deemed "deposits."

Source: SL 1915, ch 102, art 2, § 30; RC 1919, § 8977; SDC 1939, § 6.0412; SDCL, § 51-10-1; SL 1969, ch 11, § 8.1; SL 1970, ch 265, § 42; SL 1988, ch 377, § 134; SDCL, § 51-22-1.

51A-10-2. Minors' accounts.

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.

Source: SL 1909, ch 222, art 2, § 44; SL 1915, ch 102, art 2, § 48; RC 1919, § 8996; SDC 1939, § 6.0413; SDCL, § 51-10-10; SL 1969, ch 11, § 8.3; SDCL, § 51-22-3.

51A-10-3. Deposits in name of two or more persons.

Whenever a deposit has been made or shall hereafter be made, in any bank in the names of two or more persons, payable to any of them or payable to the survivor of them, such deposit or any part thereof, or any interest or dividend thereon, may be paid to any one or more of said persons whether the other be living or not, and the receipt or acquittance of the person or persons so paid shall be a valid and sufficient release and discharge to the bank for any payment so made.

Source: SL 1911, ch 128; RC 1919, § 8997; SDC 1939, § 6.0414; SL 1951, ch 13; SDCL, § 51-10-11; SL 1969, ch 11, § 8.4; SDCL, § 51-22-5.

51A-10-4. Deposits in trust for another.

Whenever any deposit is made in a bank by a person which in form is in trust for another, but no other or further notice of the existence and terms of a legal and valid trust is given in writing to the bank, in the event of the death of the trustee, the deposit or any part thereof, may be paid to the person for whom the deposit was made, together with the dividends or interest thereon, whether or not such person is a minor.

Source: SL 1969, ch 11, § 8.5; SDCL, § 51-22-6.

51A-10-5. Tax liability on payments to survivors of deposits in name of two or more persons or in trust for another.

No bank so paying any such survivor or survivors under §§ 51A-10-3 and 51A-10-4 is liable for any estate, inheritance, or succession taxes due this state.

Source: SL 1969, ch 11, § 8.6; SL 1970, ch 265, § 44; SDCL, § 51-22-7; SL 1992, ch 88, § 13; SL 1993, ch 94, § 7.

51A-10-6. Statement of account between bank and depositor--Limitation on depositor's recourse after statement rendered.

When a statement of account has been rendered by a bank to a depositor accompanied by vouchers, if any, which are the basis for debit entries in such account, or the depositor's passbook has been written up by the bank showing the condition of the depositor's account and delivered to such depositor with like accompaniment of vouchers, if any, such account shall, after a period of six years from the date of its rendition, in the event no objection thereto has been theretofore made by the depositor, be deemed finally adjusted and settled and its correctness conclusively presumed and such depositor shall thereafter be barred from questioning the incorrectness of such account for any cause.

Source: SL 1963, ch 28, § 1; SDCL, § 51-10-19; SL 1969, ch 11, § 8.7; SL 1981, ch 346, § 47; SDCL, § 51-22-8.

51A-10-7. Duty of depositor to examine statement of account and vouchers.

Nothing in § 51A-10-6 shall be construed to relieve the depositor from the duty imposed by law of exercising due diligence in the examination of such account and vouchers, if any, when rendered by the bank and of immediate notification to the bank upon discovery of any error therein, nor from the legal consequences of neglect of such duty; nor to prevent the application of § 57A-4-406 to cases governed thereby.

Source: SL 1963, ch 28, § 2; SDCL, § 51-10-20; SL 1969, ch 11, § 8.7; SL 1970, ch 265, § 45; SDCL, § 51-22-9.

51A-10-8. Misdemeanor to certify check where drawer's funds insufficient.

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.

Source: SL 1909, ch 222, art 2, § 34; SL 1915, ch 102, art 2, § 38; RC 1919, § 8986; SDC 1939, § 6.0415; SDCL, § 51-10-13; SL 1969, ch 11, § 8.8; SL 1990, ch 158, § 29; SDCL, § 51-22-10.

51A-10-9. Preferential deposits.

No bank may give preference to any depositor or creditor by pledging the assets of the bank as collateral security except as provided in § 51A-4-13 and as follows:

(1)    The bank may deposit with the treasurer of the United States so much of its assets as may be necessary to qualify as a depository for federal funds and bankruptcy court funds;

(2)    A bank, in order to qualify as a depository of funds deposited by the state, any political subdivision thereof, including counties, municipalities, townships, and school districts, or by any officer, commission, board, bureau, or agency of the state or political subdivision or any tribal government, shall segregate as security, investment securities as provided in §§ 51A-4-25 and 51A-4-26, or irrevocable standby letters of credit, or a surety bond, in accordance with § 4-6A-3, a sum equal to one hundred percent of the amount deposited in excess of the amount insured by the Federal Deposit Insurance Corporation;

(3)    A bank may pledge securities to guarantee deposit of out-of-state municipal, school district, county, or state funds in excess of the amount insured by the federal deposit insurance corporation;

(4)    The public deposits preferred by this section are hereby granted a paramount, preferred, and perfected first lien on the bank assets so deposited or segregated or pledged.

Source: SDC 1939, § 6.0418; SL 1941, ch 17; SL 1957, ch 13; SL 1963, ch 25; SDCL §§ 51-10-15 to 51-10-17; SL 1969, ch 11, § 8.10; SL 1974, ch 39, § 16; SL 1982, ch 334, § 4; SL 1986, ch 44, § 14; SL 1987, ch 45, § 3; SDCL § 51-22-12; SL 1991, ch 390, § 7; SL 1992, ch 335; SL 1997, ch 273, § 1; SL 2002, ch 221, § 1.

51A-10-10. Substitution or exchange of securities deposited to qualify as depository for funds of governmental subdivisions.

Any bank pledging such securities pursuant to § 51A-10-9 may substitute or exchange, at any time it deems it advisable or desirable and without concurrence of the depositor, or any officers of such depositors, eligible securities of like nature and character for securities pledged, if:

(1)    Such securities so substituted or exchanged shall at the time of such substitution or exchange, have a market value of at least equal to the market value of the securities released; and

(2)    In the event of such substitution or exchange, the holder or custodian of the securities shall, on the same day, forward by registered or certified mail to the public deposit protection commission and the depository bank, a receipt specifically describing and identifying both the securities so substituted or exchanged and those released and returned to the depository bank.

Source: SDC 1939, § 6.0418 as added by SL 1957, ch 12; SDCL, § 51-10-18; SL 1969, ch 11, § 8.11; SL 1982, ch 28, § 18; SL 1988, ch 377, § 138; SDCL, § 51-22-13.

51A-10-11. Loans prohibited when reserve deficient.

Whenever the reserve of any bank shall fall below the legal amount required, such bank shall not increase its loans or discounts otherwise than by discounting or purchasing bills of exchange payable at sight or on demand.

Source: SL 1909, ch 222, art 2, § 28; SL 1915, ch 102, art 2, § 32; RC 1919, § 8979; SDC 1939, § 6.0427; SDCL, § 51-10-8; SL 1969, ch 11, § 8.14; SDCL, § 51-22-17.