<html> <head> <title>Rule 20:07:22:04 Trust administration defined.</title> <META NAME="Keywords" Content="Administrative Rules 20:07:22:04"> <META NAME="Description" Content="Administrative Rules 20:07:22:04 Trust administration defined."> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 15 (filtered)"> <style> <!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; font-size:12.0pt; font-family:"Times New Roman",serif;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline;} .MsoChpDefault {font-size:10.0pt;} @page WordSection1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in;} div.WordSection1 {page:WordSection1;} --> </style> </head> <body lang=EN-US link=blue vlink=purple> <div class=WordSection1> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>20:07:22:04.&nbsp;&nbsp;Trust administration defined.</b> For purposes of SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-6A-11.1">51A-6A-11.1</A>, trust administration means that at least three of the following are performed wholly or partly in this state for accounts under the management, administration, or custody of the trust company:</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;Annual account reviews;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;Annual investment reviews;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;Trust accountings;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4)&nbsp;&nbsp;Account correspondence;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5)&nbsp;&nbsp;Completing trust account tax returns;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6)&nbsp;&nbsp;Distributing account statements; or</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7)&nbsp;&nbsp;Depositing uninvested customer funds into a bank chartered under SDCL title <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A">51A</A> or into another federally insured bank or credit union, headquartered in this state or having a branch located in this state.</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding the definition above, trust administration as set forth in SDCL subdivision <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-6A-11.1">51A-6A-11.1(4)</A> may be satisfied by other means if the director determines the nature and degree of risks presented by the trust company are low, based upon a review of the size, nature, and number of accounts administered by the trust company and the number of employees or persons performing services for the trust company in this state.</p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the size, risk profile, or rate of growth of a trust company changes, the director may require that additional administration be performed in this state to satisfy SDCL subdivision <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-6A-11.1">51A-6A-11.1(4).</A></p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 36 SDR 208, effective June 30, 2010; 39 SDR 55, effective October 8, 2012; 47 SDR 68, effective December 9, 2020.</p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-6A-11.1">51A-6A-11.1.</A></p> <p class=MsoNormal style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-6A-11.1">51A-6A-11.1</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-3-39">55-3-39</A></p> <p class=MsoNormal style='text-align:justify'>&nbsp;</p> </div> </body> </html>