CHAPTER 51A-7
BRANCH BANKS AND DRIVE-IN FACILITIES
51A-7-1 Operation of branches.
51A-7-2 Examination of branches.
51A-7-3 Capital requirements for bank operating branch.
51A-7-4 Establishment of branch banks.
51A-7-5 51A-7-5. Repealed by SL 2008, ch 252, § 31.
51A-7-6 Closing branch--Approval required--Violation as misdemeanor.
51A-7-7 National banks' branching authority.
51A-7-8 Detached drive-in facility--Requirements for construction and operation.
51A-7-9 "Detached" defined.
51A-7-10 Limitation on functions of detached drive-in facility.
51A-7-11 Construction or operation of detached drive-in facility--Approval required.
51A-7-12 Indication of parent bank on branches and drive-in facilities.
51A-7-13 Definition of terms.
51A-7-14 Interstate branches--Approval required.
51A-7-15 Application to establish interstate branch--Fee.
51A-7-16 Restrictions on branches by other states.
51A-7-17 51A-7-17, 51A-7-18. Repealed by SL 2008, ch 252, §§ 38, 39.
51A-7-19 Examination of out-of-state bank's South Dakota branch.
51A-7-20 Reports required from out-of-state bank with South Dakota branch.
51A-7-21 51A-7-21, 51A-7-22. Repealed by SL 2008, ch 252, §§ 40, 41.
51A-7-23 Joint examinations of joint enforcement actions by commission and bank supervisory agencies.
51A-7-24 51A-7-24. Repealed by SL 2008, ch 252, § 42.
51A-7-25 Authority of director in case of violation by South Dakota branch of out-of-state bank.
51A-7-26 Promulgation of rules to establish fees.
51A-7-27 51A-7-27. Repealed by SL 2008, ch 252, § 43.
51A-7-28 Prohibitions concerning bank names.
51A-7-29 Intentional misleading as to source of product, service, or communication prohibited.
51A-7-1. Operation of branches.
A branch bank or mobile branch bank may be operated by a bank only as authorized by this title and by the director under such rules as the commission shall require.
Source: SL 1933 (SS), ch 2, § 2; SL 1935, ch 54; SDC 1939, § 6.0402; SL 1957, ch 11; SDCL §§ 51-8-2, 51-8-3; SL 1969, ch 11, § 6.1; SL 1988, ch 377, § 125; SDCL § 51-20-1; SL 2008, ch 252, § 28.
51A-7-2. Examination of branches.
Every branch bank or mobile branch bank is subject to examination by the director as provided in §§ 51A-2-18 and 51A-2-20 and shall pay the fees prescribed therefor.
Source: SDC 1939, § 6.0402 as added by SL 1957, ch 11; SDCL § 51-8-5; SL 1969, ch 11, § 6.2; SL 1988, ch 377, § 126; SDCL § 51-20-2; SL 2008, ch 252, § 29.
51A-7-3. Capital requirements for bank operating branch.
Any bank operating a branch bank or banks shall have total capital of not less than the minimum amount required by rule of the commission.
Source: SL 1933 (SS), ch 2, § 2; SDC 1939, § 6.0402; SL 1957, ch 11; SDCL, § 51-8-4; SL 1969, ch 11, § 6.3; SL 1982, ch 334, § 2; SL 1988, ch 377, § 127; SDCL, § 51-20-3.
51A-7-4. Establishment of branch banks.
A branch bank may be established de novo or by consolidating or merging with or purchasing the assets of another state bank, national bank or savings and loan association, or another federally insured financial institution.
Source: SL 1933 (SS), ch 2, § 2; SDC 1939, § 6.0402; SL 1957, ch 11; SDCL § 51-8-1; SL 1969, ch 11, § 6.4; SL 1978, ch 351; SL 1981, ch 346, § 41; SL 1990, ch 381; SDCL § 51-20-4; SL 2008, ch 252, § 30.
51A-7-6. Closing branch--Approval required--Violation as misdemeanor.
No branch bank may close without the approval of the director. If a branch is closed the branch certificate shall be surrendered to the division. A violation of this section is a Class 2 misdemeanor.
Source: SL 1984, ch 316; SL 1988, ch 377, § 128; SDCL § 51-20-4.2; SL 2008, ch 252, § 32.
51A-7-7. National banks' branching authority.
Any national bank whose principal place of business is in this state is hereby authorized to do all things and perform all acts which state banks are permitted to do or perform under this chapter, subject to the conditions and restrictions provided for state banks as to exercise of like privileges.
Source: SL 1933 (SS), ch 2, § 2; SDC 1939, § 6.0402; SL 1957, ch 11; SDCL, § 51-8-6; SL 1969, ch 11, § 6.5; SDCL, § 51-20-5.
51A-7-8. Detached drive-in facility--Requirements for construction and operation.
Construction and operation of one detached drive-in facility for each bank and branch bank is authorized so long as such bank or branch bank shall comply with all the provisions of this chapter.
Source: SL 1965, ch 21, § 1; SDCL, § 51-8-8; SL 1969, ch 11, § 6.6; SDCL, § 51-20-6.
51A-7-9. "Detached" defined.
A drive-in facility is "detached" within the meaning of this chapter when any part of any structure in which any of the services of the drive-in facility are carried on is located at least fifty feet from the building in which the main banking room of the bank or branch bank operating the drive-in facility is located.
Source: SL 1965, ch 21, § 2; SDCL, § 51-8-10; SL 1969, ch 11, § 6.7; SL 1981, ch 346, § 43; SDCL, § 51-20-7.
51A-7-10. Limitation on functions of detached drive-in facility.
The only banking services which may be offered or rendered to the public at any detached drive-in facility are services comparable to those customarily performed by a bank teller in a bank. No loan or discount services shall be offered or rendered to the public at any detached drive-in facility except that loan payments may be made and accepted at such facility.
Source: SL 1965, ch 21, § 6; SDCL, § 51-8-13; SL 1969, ch 11, § 6.11; SDCL, § 51-20-11.
51A-7-11. Construction or operation of detached drive-in facility--Approval required.
No detached drive-in facility may be constructed or operated without the prior written approval of the director, in the case of a state bank, or the appropriate federal regulatory authority in the case of a national bank.
Source: SL 1965, ch 21, § 7; SDCL § 51-8-9; SL 1969, ch 11, § 6.12; SDCL § 51-20-12; SL 2008, ch 252, § 33.
51A-7-12. Indication of parent bank on branches and drive-in facilities.
A branch bank, mobile branch bank, or drive-in facility shall clearly indicate the identity of its parent bank.
Source: SL 1981, ch 346, § 70; SDCL § 51-20-13; SL 2008, ch 252, § 34.
51A-7-13. Definition of terms.
Terms used in §§ 51A-7-13 to 51A-7-26, inclusive, mean:
(1) "Acquisition of a branch," the acquisition of a branch located in a host state;
(2) "Bank," a bank as defined in 12 U.S.C. § 1813(h) as of January 1, 1996. The term does not include any foreign bank as defined in § 12 U.S.C. 3101(7) as of January 1, 1996. However, the term includes any foreign bank organized under the laws of a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, the deposits of which are insured by the Federal Deposit Insurance Corporation;
(3) "Bank supervisory agency," any agency of another state with primary responsibility for chartering and supervising banks, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, or any successor to these agencies;
(4) "Branch," a branch bank as defined by subdivision 51A-1-2(7);
(5) "Director," the director of the Division of Banking;
(6) "Control," control as construed consistently with the provisions of 12 U.S.C. § 1841(a)(2) as of January 1, 1996;
(7) "Home state," for a state bank, the state by which the bank is chartered; for a national bank, the state in which the main office of the bank is located; and for a foreign bank, the state determined to be the home state of the foreign bank pursuant to 12 U.S.C. § 3103(c) as of January 1, 1996;
(8) "Home state regulator," for an out-of-state state bank, the bank supervisory agency of the state in which the bank is chartered;
(9) "Host state," a state, other than the home state of a bank, in which the bank maintains, or seeks to establish and maintain a branch;
(10) "Out-of-state bank," a bank whose home state is a state other than South Dakota;
(11) "Out-of-state state bank," a bank chartered under the laws of any state other than South Dakota;
(12) "State," any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands;
(13) "South Dakota state bank," a bank chartered under the laws of South Dakota; and
(14) "Commission," the State Banking Commission for South Dakota.
Source: SL 1996, ch 280, § 1; SL 2021, ch 204, § 2.
51A-7-14. Interstate branches--Approval required.
With prior approval of the director, any South Dakota state bank may establish and maintain a branch or acquire a branch in a state other than South Dakota. A South Dakota state bank may conduct any activities at a branch outside of South Dakota that are permissible for a bank chartered by the host state where the branch is located.
Source: SL 1996, ch 280, § 2; SL 2008, ch 252, § 35.
51A-7-15. Application to establish interstate branch--Fee.
No South Dakota state bank may establish or maintain a branch in another state until the application and appropriate fee has been submitted and approved as provided in § 51A-2-16. In acting on an application, the director or commission, as the case may be, may consider the views of the appropriate bank supervisory agencies.
Source: SL 1996, ch 280, § 3; SL 2008, ch 252, § 36.
51A-7-16. Restrictions on branches by other states.
To the extent another state imposes a restriction on the ability of a South Dakota bank to establish, acquire, or retain a branch in that state, the other state's restriction shall apply to the establishment, acquisition, or retention of a branch in South Dakota by a bank from that state.
Source: SL 1996, ch 280, § 4; SL 2008, ch 252, § 37.
51A-7-19. Examination of out-of-state bank's South Dakota branch.
The director may make such examinations of any branch established and maintained in South Dakota pursuant to §§ 51A-7-13 to 51A-7-26, inclusive, by an out-of-state state bank as the director may deem necessary to determine whether the branch is operated in compliance with the laws of South Dakota and in accordance with safe and sound banking practices. The provisions of § 51A-2-18 apply to the examinations.
Source: SL 1996, ch 280, § 7; SL 2021, ch 204, § 3.
51A-7-20. Reports required from out-of-state bank with South Dakota branch.
The director may require periodic reports regarding any out-of-state bank that has established and maintained a branch in South Dakota. The required reports may be provided by the bank or by the bank supervisory agency having primary responsibility for the bank. Any reporting requirements prescribed by the director under this section shall be consistent with the reporting requirements applicable to South Dakota state banks.
Source: SL 1996, ch 280, § 8.
51A-7-23. Joint examinations of joint enforcement actions by commission and bank supervisory agencies.
The commission may enter into joint examinations or joint enforcement actions with other bank supervisory agencies having concurrent jurisdiction over any branch established and maintained in South Dakota by an out-of-state bank or any branch established and maintained by a South Dakota state bank in any host state. The director may at any time take any actions independently if the director deems such actions to be necessary or appropriate to carry out the commission's responsibilities under §§ 51A-7-13 to 51A-7-26, inclusive, or to ensure compliance with the laws of South Dakota. However, in the case of an out-of-state state bank, the director shall recognize the exclusive authority of the home state regulator with respect to matters of safety and soundness.
Source: SL 1996, ch 280, § 11; SL 2021, ch 204, § 4.
51A-7-25. Authority of director in case of violation by South Dakota branch of out-of-state bank.
If it is determined that a branch maintained by an out-of-state state bank in South Dakota is being operated in violation of any provision of the laws of South Dakota or is being operated in an unsafe and unsound manner, the director has the authority to take any enforcement action as though the branch were a South Dakota state bank if the director gives notice to the home state regulator of the enforcement action.
Source: SL 1996, ch 280, § 13.
51A-7-26. Promulgation of rules to establish fees.
The commission may promulgate rules pursuant to chapter 1-26 to establish the fees provided by §§ 51A-7-13 to 51A-7-15, inclusive, and to provide the necessary forms to administer §§ 51A-7-13 to 51A-7-25, inclusive.
Source: SL 1996, ch 280, § 14; SL 2021, ch 204, § 5.
51A-7-28. Prohibitions concerning bank names.
No provision of this chapter permits any person, partnership, association, or corporation to identify a newly formed bank, to rename an existing bank, or to open a branch of a newly formed or existing bank, if the effect of such formation, opening, or renaming would be likely to create confusion between the trade name, trademark, service mark, or trade identity of such bank or branch and an existing bank or branch having prior trade name, trademark, service mark, or trade identity rights in the trade area sought to be entered by such newly formed or renamed bank or branch.
Source: SL 1996, ch 281.
51A-7-29. Intentional misleading as to source of product, service, or communication prohibited.
No person may use the word, bank, or any variation of the word, bank, or logo of an existing bank, trust company, savings association, savings bank, or affiliate in a manner that intentionally misleads a person about the source of origin, affiliation, or sponsorship of a product or service or about the true identity source of a communication regardless of the nature of the communication.
Source: SL 2008, ch 252, § 44.
