<html> <head> <title>Rule 20:07:16:05 Loans to subsidiaries.</title> <META NAME="Keywords" Content="Administrative Rules 20:07:16:05"> <META NAME="Description" Content="Administrative Rules 20:07:16:05 Loans to subsidiaries."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>20:07:16:05.&nbsp;&nbsp;Loans to subsidiaries.</b> Loans to a subsidiary made in the normal course of business shall not be construed as a direct investment in that subsidiary. Maximum loan limitations for individual borrowers provided in SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-12-2">51A-12-2</A> apply to subsidiaries of the bank in aggregate. Any bank that exceeds loan limits to its subsidiaries in the aggregate amount must give notice to the division and receive written approval.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 12 SDR 106, effective January 1, 1986; 12 SDR 151, 12 SDR 155, effective July 1, 1986.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b>SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-2-13">51A-2-13</A> to <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-2-15">51A-2-15.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b>SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-12-2">51A-12-2</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-12-7">51A-12-7</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-12-8">51A-12-8.</A></p> </div> </body> </html>