51A-15-1      Voluntary liquidation--Requirements for approval.
51A-15-2      Ceasing to do business and winding up affairs on voluntary liquidation.
51A-15-3      Notice of voluntary liquidation--Manner of publication--Contents.
51A-15-4      Resignation of fiduciary positions and settlement of accounts on voluntary liquidation.
51A-15-5      Disposition of safe deposit on voluntary liquidation.
51A-15-6      Depositor's or creditor's rights not impaired by voluntary liquidation--Return of safe deposit rental.
51A-15-7      Distribution of assets after discharge of obligations on voluntary liquidation--Disposition of unclaimed distributions.
51A-15-8      Authority of director to take possession of bank in voluntary liquidation.
51A-15-9      Reports of progress in voluntary liquidation--Order and certificate of dissolution.
51A-15-10      Cancellation of voluntary liquidation.
51A-15-11      Director's authority to suspend activities and take possession of bank--Grounds.
51A-15-12      "Insolvent" defined.
51A-15-13      Receipt of deposits by insolvent bank unlawful--Felony.
51A-15-14      Notice of suspension and possession.
51A-15-15      Management and control powers of director in possession.
51A-15-16      Circuit court jurisdiction of proceedings--Venue.
51A-15-17      Change of venue.
51A-15-18      Director's appointment of Federal Deposit Insurance Corporation as receiver in liquidation proceedings.
51A-15-19      Powers of Federal Deposit Insurance Corporation as receiver in liquidation proceedings--Actions to recover money damages.
51A-15-20      Postponement of limitation periods on director's taking actions.
51A-15-21      Director's authority to take action in emergency without majority consent of commission.
51A-15-22      Applications to enjoin director from suspending activities and taking possession of bank.
51A-15-23      Proceedings exempt from open meetings and administrative procedure laws.
51A-15-24      Reorganization of bank by director--Distribution and effect of reorganization plan.
51A-15-25      Execution of lien on assets of bank in director's or receiver's possession prohibited--Powers of director.
51A-15-26      Borrowing money by director in possession.
51A-15-27      Expenses of director paid from assets.
51A-15-28      Requirements for adoption of reorganization plan.
51A-15-29      Modification of reorganization plan or liquidation of bank--Grounds and notice requirements.
51A-15-30      Limitations on powers of director or receiver in liquidating bank.
51A-15-31      Executory contracts of bank terminated after commencement of liquidation.
51A-15-32      Fiduciary positions of bank terminated after commencement of liquidation.
51A-15-33      Subrogation rights of Federal Deposit Insurance Corporation in liquidation of bank.
51A-15-34      Notice of liquidation by director or receiver.
51A-15-35      Disposition of safe deposit boxes in liquidation by director or receiver.
51A-15-36      Settlement of claims by director or receiver in liquidation proceedings.
51A-15-37      Objections to schedule of determinations in settlement of claims.
51A-15-38      Partial distributions to claim holders authorized--Final distribution.

51A-15-1. Voluntary liquidation--Requirements for approval.

Any bank may file an application with the commission to voluntarily liquidate and dissolve. Such application may be approved by the commission upon finding:

(1)    The proposal to liquidate and dissolve has been approved by a vote of two-thirds of the outstanding voting stock at a meeting called for the purpose of considering such action.

(2)    The bank is solvent and has sufficient liquid assets to forthwith pay off depositors and creditors.

Source: SL 1969, ch 11, § 13.1; SL 1970, ch 265, § 60; SL 1988, ch 377, § 163; SDCL, § 51-27-1.

51A-15-2. Ceasing to do business and winding up affairs on voluntary liquidation.

Upon approval by the commission, pursuant to § 51A-15-1, a bank shall forthwith cease to do business, shall have only the powers necessary to effect an orderly liquidation and shall proceed to pay its depositors and creditors and to wind up its affairs.

Source: SL 1969, ch 11, § 13.2; SDCL, § 51-27-2.

51A-15-3. Notice of voluntary liquidation--Manner of publication--Contents.

Within thirty days of the approval, a notice of voluntary liquidation shall be:

(1)    Mailed to the last known post-office address of each depositor, creditor, person interested in funds held as a fiduciary, lessee of a safe deposit box or bailor of property;

(2)    Posted conspicuously on the premises of the bank; and

(3)    Published as the director shall require.

The bank shall mail with the notice a statement of the amount shown on its books to be the claim of the depositor or creditor. The notice shall also demand that property held by the bank as bailee or in a safe deposit box be withdrawn by the person entitled thereto within thirty days. The notice shall direct that objections of depositors and creditors, if the amount claimed differs from that in such statement be filed with the bank before a specified date which shall not be less than sixty days from the date of first publication in accordance with the procedure described therein. The notice shall also include such other information as the director or the bank may deem pertinent.

Source: SL 1969, ch 11, § 13.2 (2); SL 1970, ch 265, § 61; SDCL, § 51-27-3.

51A-15-4. Resignation of fiduciary positions and settlement of accounts on voluntary liquidation.

As soon after approval as may be practicable the bank shall resign all fiduciary positions and take such action as may be necessary to settle its fiduciary accounts.

Source: SL 1969, ch 11, § 13.2 (3); SDCL, § 51-27-4.

51A-15-5. Disposition of safe deposit on voluntary liquidation.

The contents of safe deposit boxes which have not been removed within thirty days after demand shall be opened and the contents dealt with in the manner provided for boxes upon which the payment of rental is in default and the sealed packages containing the contents and the certificates together with any other unclaimed property held by the bank as bailee and certified inventories thereof shall be transferred to the state treasurer who shall retain it for one year unless sooner claimed by the person entitled thereto. After one year the state treasurer shall dispose of the property pursuant to chapter 43-41B.

Source: SL 1969, ch 11, § 13.2 (4); SL 1974, ch 301, § 3; SDCL, § 51-27-5.

51A-15-6. Depositor's or creditor's rights not impaired by voluntary liquidation--Return of safe deposit rental.

The approval of an application for voluntary liquidation shall not impair any right of a depositor or creditor to payment in full and all lawful claims of creditors and depositors shall promptly be paid. The unearned portion of the rental of a safe deposit box shall be returned to the lessee.

Source: SL 1969, ch 11, § 13.2 (5); SL 1970, ch 265, § 62; SDCL, § 51-27-6.

51A-15-7. Distribution of assets after discharge of obligations on voluntary liquidation--Disposition of unclaimed distributions.

Any assets remaining after the discharge of all obligations shall be distributed to the stockholders in accordance with their respective interests. No such distribution shall be made before:

(1)    All claims of depositors and creditors have been paid, or, in the case of any disputed claim, the bank has transmitted to the director a sum adequate to meet any liability that may be judicially determined;

(2)    Any funds payable to a depositor or creditor and unclaimed have been transmitted to the state treasurer; and

(3)    Approved by the director.

Any unclaimed distribution to a stockholder or depositor shall be held until ninety days after the final distribution and then transmitted to the state treasurer for disposition pursuant to chapter 43-41B.

Source: SL 1969, ch 11, § 13.2 (6); SL 1970, ch 265, § 63; SL 1974, ch 301, § 4; SDCL, § 51-27-7.

51A-15-8. Authority of director to take possession of bank in voluntary liquidation.

Where a bank has commenced voluntary liquidation and the director finds that the assets will be insufficient for the full discharge of all obligations or that completion of the liquidation has been unduly delayed, he may take possession and complete the liquidation in the manner provided in this chapter for involuntary liquidations.

Source: SL 1969, ch 11, § 13.3; SDCL, § 51-27-8.

51A-15-9. Reports of progress in voluntary liquidation--Order and certificate of dissolution.

The director may require reports of the progress of a bank engaged in voluntary liquidation and whenever he is satisfied that the liquidation has been properly completed he shall cancel the charter and enter an order of dissolution. The filing of a certified copy of such order with the secretary of state shall be deemed authority for the issuance of a certificate of dissolution.

Source: SL 1969, ch 11, § 13.4; SL 1970, ch 265, § 64; SDCL, § 51-27-9; SL 2005, ch 202, § 19.

51A-15-10. Cancellation of voluntary liquidation.

A bank may, at any time prior to the director's cancellation of its charter, revoke its intention to voluntarily liquidate under § 51A-15-1, if it receives approval of its action upon an affirmative vote of at least two-thirds of the voting shares of the bank. Written evidence of its intentions delivered to the director prior to cancellation are considered an effective revocation.

Source: SL 1988, ch 377, § 164; SDCL, § 51-27-9.1.

51A-15-11. Director's authority to suspend activities and take possession of bank--Grounds.

After a hearing with three days' oral or written notice to a majority of the members of the board of directors, the director may, with the consent of a majority of the members of the commission, suspend all activities and take possession of the business and property of a bank if the director finds:

(1)    The bank's capital is impaired or the bank is otherwise in an unsound condition;

(2)    The bank's business is being conducted in an unlawful or unsound manner;

(3)    The bank is unable to continue normal operations;

(4)    The bank refuses to permit, obstructs, or impedes an examination as provided in § 51A-2-18;

(5)    The bank places its affairs and assets under the control of the director;

(6)    A parent corporation refuses to permit, obstructs, or impedes an examination as provided in § 51A-2-37;

(7)    The bank is insolvent; or

(8)    The bank's insurance has been terminated pursuant to an action initiated by the Federal Deposit Insurance Corporation under 12 U.S.C. § 1818(a), as of January 1, 2015.

Source: SL 1909, ch 222, art 1, § 9; SL 1909, ch 222, art 2, § 20; SL 1911, ch 256, §§ 9, 26; SL 1915, ch 102, art 1, § 9; SL 1915, ch 102, art 2, § 23; RC 1919, §§ 8925, 8970, 9056; SDC 1939, § 6.0604; SDCL § 51-14-11; SL 1969, ch 11, § 13.5; SL 1970, ch 265, § 65; SL 1981, ch 346, § 68; SL 1982, ch 336, § 2; SL 1988, ch 377, § 165; SDCL § 51-27-10; SL 2015, ch 239, § 9.

51A-15-12. "Insolvent" defined.

"Insolvent" means incapable of meeting the demands of creditors or having liabilities which exceed assets.

Source: SL 1982, ch 336, § 1; SDCL, § 51-27-10.1.

51A-15-13. Receipt of deposits by insolvent bank unlawful--Felony.

No bank may receive any deposit when insolvent. No officer, director or employee who knows, or in the proper performance of his duty should know, of such insolvency may receive or authorize the receipt of such deposit. Any person violating this section shall be guilty of a Class 5 felony.

Source: SL 1891, ch 27, § 25; RCivC 1903, § 871; SL 1909, ch 222, art 2, § 45; SL 1911, ch 255, § 12; SL 1915, ch 102, art 2, § 49; RC 1919, §§ 8998, 9042; SDC 1939, § 6.9909; SDCL, § 51-10-3; SL 1969, ch 11, § 1.7; SL 1970, ch 265, § 1; SL 1980, ch 24, § 77; SDCL, § 51-15-7; SL 1988, ch 377, § 6; SDCL, § 51-27-10.2.

51A-15-14. Notice of suspension and possession.

The director shall suspend the activities and take possession pursuant to § 51A-15-11 or 51A-15-21 by posting upon the premises a notice reciting that all activities shall be suspended and that the director is assuming possession pursuant to this chapter and the time, not earlier than the posting of the notice, when the director's possession is deemed to commence. The notice shall also be posted to the division's website. The director shall notify the appropriate federal reserve bank of an action to take possession of any bank which is a member of the federal reserve system.

Source: SL 1969, ch 11, § 13.6(1); SL 1988, ch 377, § 166; SDCL § 51-27-11; SL 2012, ch 252, § 26; SL 2015, ch 239, § 10.

51A-15-15. Management and control powers of director in possession.

When the director has taken possession he shall be vested with the full and exclusive power of management and control, including the power to assess outstanding capital stock, continue or to discontinue the business, to stop or to limit the payment of its obligations, to employ any necessary assistants, to execute any instrument in the name of the bank, to commence, defend and conduct in its name any action or proceeding in which it may be a party, to terminate his possession by restoring the bank to its board of directors and to reorganize or liquidate the bank in accordance with this chapter. As soon as practicable after taking possession the director shall make an inventory of the assets and file a copy thereof with the circuit court.

Source: SL 1911, ch 256, §§ 11, 14; SL 1915, ch 102, art 1, §§ 12, 15; RC 1919, §§ 8928, 8931; SL 1931, ch 88; SDC 1939, §§ 6.0607, 6.0608; SDCL, §§ 51-14-19, 51-14-22; SL 1969, ch 11, § 13.6 (2); SDCL, § 51-27-12.

51A-15-16. Circuit court jurisdiction of proceedings--Venue.

The circuit court shall have original jurisdiction over all proceedings brought under this chapter. The venue of such proceedings shall be in the county in which the bank's principal place of business is located.

Source: SL 1909, ch 222, art 2, § 25; SL 1915, ch 102, art 2, § 28; RC 1919, § 8975; SDC 1939, § 6.0601; SDCL, § 51-14-3; repealed SL 1969, ch 11, § 14.1; re-enacted SL 1970, ch 265, § 76; SDCL, § 51-27-12.1.

51A-15-17. Change of venue.

At any time after the commencement of a proceeding under this chapter, the director may apply to the court for an order changing the venue to any other county of this state in which he deems that such proceeding may be most economically and efficiently conducted.

Source: SL 1970, ch 265, § 76; SDCL, § 51-27-12.2.

51A-15-18. Director's appointment of Federal Deposit Insurance Corporation as receiver in liquidation proceedings.

The director may appoint the Federal Deposit Insurance Corporation as receiver for a bank of which he has taken possession. Upon filing with the court an order of appointment of the receiver and a certificate indicating the acceptance by the Federal Deposit Insurance Corporation, the possession of all the assets, business, and property, and the title thereto, shall be deemed transferred to such corporation. The director shall be forever thereafter relieved from all responsibility and liability in respect to the liquidation of the bank.

Source: SL 1935, ch 60, §§ 1, 7, 8; SDC 1939, § 6.0626; SDCL, §§ 51-14-15, 51-14-17; SL 1969, ch 11, § 13.25; SL 1970, ch 265, § 74; SDCL, § 51-27-37; SL 1988, ch 377, § 187; SDCL, § 51-27-12.3.

51A-15-19. Powers of Federal Deposit Insurance Corporation as receiver in liquidation proceedings--Actions to recover money damages.

The Federal Deposit Insurance Corporation may liquidate, reorganize, merge, or consolidate the bank in such manner as is permitted by the laws of the United States or by this chapter, possessing all rights, powers, duties, and obligations of the commission and director as therein set forth including the right to operate the trust department of any such bank which is qualified to do the business of a trust company.

A claim, proceeding, or action seeking to recover money damages may not be brought by the State of South Dakota, the Division of Banking, the Federal Deposit Insurance Corporation, Resolution Trust Corporation, or other federal banking regulatory agency against any director or officer, including any former director or officer, of any insured state chartered or federally chartered bank or financial depository institution as defined in the Financial Institutions Reform, Recovery and Enforcement Act of 1989, or bank chartered pursuant to Title 51A and its predecessors, unless such claim or action arises out of the gross negligence, or willful or intentional misconduct of such officer or director during his term of office with such insured financial institution. The provisions of this section shall be retroactive.

Source: SDC 1939, § 6.0626; SDCL, § 51-14-16; SL 1969, ch 11, § 13.25; SL 1970, ch 265, § 75; SDCL, §§ 51-27-12.4, 51-27-38; SL 1993, ch 353.

51A-15-20. Postponement of limitation periods on director's taking actions.

When the director has caused the suspension and taken possession of a bank, there shall be a postponement until six months after the commencement of such possession actions of the date upon which any period of limitation fixed by a statute or agreement would otherwise expire on a claim or right of action of the bank, or upon which an appeal must be taken or a pleading or other document must be filed by the bank in any pending action or proceeding.

Source: SL 1969, ch 11, § 13.6 (3); SL 1988, ch 377, § 167; SDCL, § 51-27-13.

51A-15-21. Director's authority to take action in emergency without majority consent of commission.

If, in the opinion of the director, an emergency exists which will result in serious losses to the depositors and creditors, he may suspend all activities and take possession of a bank without the consent of a majority of the members of the commission.

Source: SL 1969, ch 11, § 13.7 (1); SL 1982, ch 336, § 3; SL 1988, ch 377, § 168; SDCL, § 51-27-14.

51A-15-22. Applications to enjoin director from suspending activities and taking possession of bank.

Within three days after the director has suspended and taken possession of the property and business of a bank, that bank may apply to the circuit court to enjoin further proceedings. The court, after requiring the director to show cause why further proceedings should not be enjoined and after a hearing and a determination upon the merit of the facts, may dismiss the application, or may enjoin the director from further proceedings, and may void any appointment of a receiver, and direct him or the receiver to surrender the property and business to the bank. This section provides the exclusive method for challenging the actions of the director under this chapter.

Source: SL 1969, ch 11, § 13.7 (2); SL 1970, ch 265, § 66; SL 1982, ch 336, § 4; SL 1988, ch 377, § 169; SDCL, § 51-27-15.

51A-15-23. Proceedings exempt from open meetings and administrative procedure laws.

Proceedings under chapter 51A-15 are exempt from the provisions of chapters 1-25 and 1-26.

Source: SL 1982, ch 336, § 6; SDCL, §§ 51-27-15.1, 51-27-40.

51A-15-24. Reorganization of bank by director--Distribution and effect of reorganization plan.

If the director of the Division of Banking determines to reorganize a bank he shall enter an order proposing a reorganization plan. A copy of the plan shall be sent to each depositor and creditor who will not receive payment of his claim in full under the plan together with notice that the director will proceed to effect the reorganization unless, within fifteen days, the plan is disapproved in writing by persons holding one-third or more of the aggregate amount of those claims. A department, agency, or political subdivision of this state holding a claim which will not be paid in full is authorized to participate as any other creditor.

Source: SL 1969, ch 11, § 13.7 (3); SL 1982, ch 336, § 5; SDCL, § 51-27-16.

51A-15-25. Execution of lien on assets of bank in director's or receiver's possession prohibited--Powers of director.

No judgment, lien or attachment may be executed upon any asset of the bank while it is in possession of the director. Upon the election of the director or receiver in connection with a liquidation or reorganization:

(1)    Any lien or attachment, other than an attorney's or mechanic's lien, obtained upon any asset of the bank during the director's possession or within four months prior to commencement thereof shall be vacated except liens created by the director while in possession.

(2)    Any transfer of an asset of the bank made after or in contemplation of its insolvency with intent to effect a preference shall be voided.

Source: SL 1909, ch 222, art 1, § 12; SL 1911, ch 256, § 25; SL 1915, ch 102, art 1, § 22; RC 1919, § 8938; SL 1925, ch 94; SL 1929, ch 74; SDC 1939, § 6.0620; SDCL, § 51-14-30; SL 1969, ch 11, § 13.8; SL 1988, ch 377, § 170; SDCL, § 51-27-17.

51A-15-26. Borrowing money by director in possession.

With the approval of the commission, the director may borrow money in the name of the bank in his possession and may pledge its assets as security for the loan.

Source: SL 1933, ch 54, § 1; SDC 1939, § 6.0629; SDCL, § 51-14-25; SL 1969, ch 11, § 13.9; SDCL, § 51-27-18.

51A-15-27. Expenses of director paid from assets.

All necessary and reasonable expenses of the director's suspension and taking possession of a bank and of its reorganization or liquidation shall be paid from the assets thereof.

Source: SL 1911, ch 256, § 15; SL 1915, ch 102, art 1, § 14; SL 1917, ch 140, § 4; RC 1919, § 8930; SL 1925, ch 93, § 2; SDC 1939, § 6.0619; SL 1941, ch 18; SDCL, § 51-14-51; SL 1969, ch 11, § 13.10; SL 1970, ch 265, § 67; SL 1988, ch 377, § 171; SDCL, § 51-27-19.

51A-15-28. Requirements for adoption of reorganization plan.

No plan of reorganization may be prescribed under this chapter unless, in the opinion of the director or receiver:

(1)    The plan is feasible and fair to all classes of depositors, creditors and stockholders;

(2)    The face amount of the interest accorded to any class of depositors, creditors or stockholders under the plan does not exceed the value of the assets upon the liquidation less the full amount of the claims of all prior classes, subject, however, to any fair adjustment for new capital that any class will pay under the plan;

(3)    The plan provides for the issuance of common stock in an amount that will provide an adequate ratio to assets;

(4)    Any exchange of new common stock for obligations or stock of the bank will be effected in inverse order to the priorities in liquidation of the classes that will retain an interest in the bank and upon terms that fairly adjust any change in the relative interests of the respective classes that will be produced by the exchange;

(5)    The plan assures the removal of any director, officer or employee responsible for any unsound or unlawful action or the existence of any unsound condition;

(6)    Any merger or consolidation provided by the plan conforms to the requirement of this title.

Source: SL 1969, ch 11, § 13.11; SL 1970, ch 20, § 1 (5); SL 1988, ch 377, § 172; SDCL, § 51-27-20.

51A-15-29. Modification of reorganization plan or liquidation of bank--Grounds and notice requirements.

Whenever in the course of reorganization supervening conditions render a plan of reorganization unfair or its execution impractical, the director may modify the plan or liquidate the bank. Any such action shall be taken by order upon reasonable notice.

Source: SL 1969, ch 11, § 13.12; SL 1970, ch 265, § 68; SDCL, § 51-27-21.

51A-15-30. Limitations on powers of director or receiver in liquidating bank.

In liquidating a bank the director or receiver may exercise any power thereof but he may not, without the approval of the circuit court:

(1)    Sell any asset of the bank having an appraised value in excess of five thousand dollars;

(2)    Compromise or release any claim which exceeds five thousand dollars, exclusive of interest; or

(3)    Make any payment on any claim, other than a claim upon an obligation incurred by the director or receiver, before preparing and filing a schedule of his determinations in accordance with subdivision 51A-15-36 (3).

Source: SL 1925, ch 103, §§ 1 to 3; SDC 1939, § 6.0614; SDCL, § 51-14-37; SL 1969, ch 11, § 13.13; SL 1988, ch 377, § 173; SDCL, § 51-27-22.

51A-15-31. Executory contracts of bank terminated after commencement of liquidation.

Within six months of the commencement of involuntary liquidation, the director or receiver may by his election terminate any executory contract for services or advertising to which a bank is a party or any obligation of a bank as a lessee. A lessor who receives sixty days' notice of the director's or receiver's election to terminate such a lease shall have no claim for rent other than rent accrued to the date of termination nor for damages for such termination.

Source: SL 1969, ch 11, § 13.14; SL 1970, ch 265, § 69; SL 1988, ch 377, § 174; SDCL, § 51-27-23.

51A-15-32. Fiduciary positions of bank terminated after commencement of liquidation.

As soon after the commencement of involuntary liquidation as is practicable, the director or receiver shall take the necessary steps to terminate all fiduciary positions held by a bank and take such action as may be necessary to surrender all property held by such bank as a fiduciary and to settle its fiduciary accounts.

Source: SL 1969, ch 11, § 13.15; SL 1970, ch 265, § 70; SL 1988, ch 377, § 175; SDCL, § 51-27-24.

51A-15-33. Subrogation rights of Federal Deposit Insurance Corporation in liquidation of bank.

The right of any agency of the United States insuring deposits of a bank in liquidation, to be subrogated to the rights of depositors upon payment of their claim shall not be less extensive than the law of the United States requires as a condition of the authority to issue such insurance or make such payment.

Source: SL 1969, ch 11, § 13.16; SDCL, § 51-27-25.

51A-15-34. Notice of liquidation by director or receiver.

As soon after commencement of liquidation by the director or receiver as practicable, he shall proceed as in § 51A-15-3 relating to voluntary liquidation by banks, except that no notice need be sent relating to fiduciary accounts as therein mentioned.

Source: SL 1969, ch 11, § 13.17; SL 1988, ch 377, § 176; SDCL, § 51-27-26.

51A-15-35. Disposition of safe deposit boxes in liquidation by director or receiver.

Safe deposit boxes in banks being liquidated by the director, the contents of which have not been removed before the date specified, shall be disposed of by the director or receiver as in § 51A-15-5.

Source: SL 1969, ch 11, § 13.18; SL 1988, ch 377, § 177; SDCL, § 51-27-27.

51A-15-36. Settlement of claims by director or receiver in liquidation proceedings.

Within six months after the last day specified in the notice for the filing of claims or such longer period as may be allowed by the circuit court, the director or receiver shall:

(1)    Reject any claim determined to be invalid;

(2)    Determine the amount, if any, owing to each known creditor or depositor and the priority class of his claim under this chapter;

(3)    Prepare a schedule of such determinations for filing in the circuit court; and

(4)    Provide for legal publication in such newspapers as he shall determine, once a week for three successive weeks a notice of the time when and where the schedule of determinations will be available for inspection; and the date, not sooner than thirty days thereafter, when the director or receiver will file his schedule in court.

Source: SL 1911, ch 256, § 13; SL 1915, ch 102, art 1, § 17; RC 1919, § 8933; SDC 1939, § 6.0611; SDCL, §§ 51-14-33, 51-14-34; SL 1969, ch 11, § 13.19; SL 1970, ch 265, § 71; SL 1988, ch 377, § 178; SDCL, § 51-27-28.

51A-15-37. Objections to schedule of determinations in settlement of claims.

Within twenty days after the filing of the schedule, pursuant to subdivision 51A-15-36 (3) any creditor, depositor or stockholder may file with the circuit court an objection to any determination made. Any objections so filed shall be heard and determined by the court, upon such notice to the director or receiver and interested claimants as the court may prescribe. If the objection is sustained the court shall direct an appropriate modification of the schedule.

Source: SL 1915, ch 102, art 1, § 17; RC 1919, § 8933; SDC 1939, § 6.0611; SDCL, § 51-14-35; SL 1969, ch 11, § 13.20; SL 1970, ch 265, § 72; SL 1988, ch 377, § 179; SDCL, § 51-27-29.

51A-15-38. Partial distributions to claim holders authorized--Final distribution.

After filing his schedule the director or receiver may, from time to time, make partial distribution to the holders of claims which are undisputed or have been allowed by the court, if a proper reserve is established for the payment of disputed claims. As soon as is practicable after the determination of all objections the director or receiver shall make final distribution.

Source: SL 1911, ch 256, §§ 16, 21, 22; SL 1915, ch 102, art 1, §§ 18 to 20; RC 1919, §§ 8934 to 8936; SL 1919, ch 118; SDC 1939, § 6.0618; SDCL, § 51-14-53; SL 1969, ch 11, § 13.20; SL 1988, ch 377, § 180; SDCL, § 51-27-30.

51A-15-39. Priority of claims in liquidation proceedings.

The following claims shall have priority:

(1)    First, public deposits that are subject to chapter 4-6A and § 51A-10-9;

(2)    Then, obligations incurred by the director or receiver;

(3)    Then, total deposits of each depositor;

(4)    Then, all taxes due on a pro rata basis;

(5)    Then, wages and salaries of officers and employees earned during the three-month period preceding the director's possession in an amount not exceeding the normal amount of compensation due;

(6)    Then, fees and assessments due to the division on a pro rata basis;

(7)    Then, all other claims on a pro rata basis exclusive of claims by holders of capital notes and debentures.

Source: SL 1969, ch 11, § 13.21 (1); SL 1988, ch 377, § 181; SL 1989, ch 411, § 5; SDCL, § 51-27-31.

51A-15-40. Payment of claims not filed within time prescribed.

After the payment of all claims filed within the time prescribed by § 51A-15-36 the director or receiver shall pay all other legal claims.

Source: SL 1969, ch 11, § 13.21 (2); SL 1988, ch 377, § 182; SDCL, § 51-27-32.

51A-15-41. Prorata payment of claims authorized.

If the sum available for any class is insufficient to provide payment in full, such sum shall be distributed to the claimants in the class on a pro rata basis.

Source: SL 1969, ch 11, § 13.21 (3); SL 1988, ch 377, § 183; SDCL, § 51-27-33.

51A-15-42. Distribution of assets remaining after liquidation.

When the director or receiver has liquidated a bank, any assets remaining after all claims have been paid shall be distributed to the stockholders in accordance with their respective interests.

Source: SL 1911, ch 256, § 19; SL 1915, ch 102, art 1, § 24; RC 1919, § 8940; SDC 1939, § 6.0630; SDCL, § 51-14-64; SL 1969, ch 11, § 13.22; SL 1988, ch 377, § 184; SDCL, § 51-27-34.

51A-15-43. Disposition of unclaimed funds after liquidation.

Unclaimed funds remaining after the completion of the liquidation shall be transferred to the state treasurer for disposal pursuant to chapter 43-41B.

Source: SDC 1939, § 6.0618; SDCL, § 51-14-54; SL 1969, ch 11, § 13.23; SL 1974, ch 301, § 5; SL 1988, ch 377, § 185; SDCL, § 51-27-35.

51A-15-44. Accounting by director or receivers after liquidation--Cancellation of charter--Order and certificate of dissolution.

When the assets have been distributed in accordance with this chapter, the director or receiver shall file an account with the circuit court. Upon approval thereof, the director or receiver shall be relieved of liability in connection with the liquidation and the court shall cancel the charter and enter an order of dissolution. The filing of a certified copy of such order with the secretary of state shall be deemed authority for the issuance of a certificate of dissolution.

Source: SL 1927, ch 58, §§ 10, 11; SL 1933, ch 55, §§ 10, 11; SDC 1939, § 6.0631; SDCL, § 51-14-62; SL 1969, ch 11, § 13.24; SL 1970, ch 265, § 73; SL 1988, ch 377, § 186; SDCL, § 51-27-36; SL 2005, ch 202, § 18.

51A-15-45. Instruments affecting real estate executed on behalf of insolvent banks validated.

All real estate mortgages, assignments and satisfactions of real estate mortgages and all assignments of sheriff's certificates of sale and all sales made and deeds executed by a receiver of an insolvent suspended national bank, by the board of trustees or local liquidation committee or corporation of an insolvent suspended state bank, or by the director, in charge of an insolvent suspended state bank or by a duly appointed, qualified and acting examiner in charge, either in the name of the director, or in his own name as examiner in charge of such insolvent suspended state bank, are hereby legalized, cured and validated.

Source: SL 1949, ch 20; SDC Supp 1960, § 65.0327; SDCL, §§ 51-14-66, 51-27-39.