<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 51A-2-24 - Accounting practices--Valuation of assets--Required practices to protect loans. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2071494Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2071494SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2071494CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2071494Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2071494DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2071494Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2071494000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2071494SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2071494SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2071494Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=51A-2-24"><span class="s2071494SENU">51A-2-24</span></a><span xml:space="preserve" class="s2071494SENU">. </span><span class="s2071494CL">Accounting practices--Valuation of assets--Required practices to protect loans.</span></p><p dir="ltr" class="s2071494Normal-000000"><span class="s2071494DefaultParagraphFont">The director may require any bank:</span></p><p dir="ltr" class="s2071494Normal-000001"><span class="s2071494DefaultParagraphFont">(1)    To maintain its accounts in a prescribed manner having regard for the size of the bank;</span></p><p dir="ltr" class="s2071494Normal-000001"><span class="s2071494DefaultParagraphFont">(2)    To observe methods and standards for determining the value of various types of assets;</span></p><p dir="ltr" class="s2071494Normal-000001"><span class="s2071494DefaultParagraphFont">(3)    To charge off the whole or part of any asset which could not then be lawfully acquired;</span></p><p dir="ltr" class="s2071494Normal-000001"><span class="s2071494DefaultParagraphFont">(4)    To write down an asset to its market value;</span></p><p dir="ltr" class="s2071494Normal-000001"><span class="s2071494DefaultParagraphFont">(5)    To record liens and other interests in property;</span></p><p dir="ltr" class="s2071494Normal-000001"><span class="s2071494DefaultParagraphFont">(6)    To obtain a financial statement and adequate credit information from borrowers;</span></p><p dir="ltr" class="s2071494Normal-000001"><span class="s2071494DefaultParagraphFont">(7)    To require borrowers to obtain insurance against damage to real or personal property taken as security;</span></p><p dir="ltr" class="s2071494Normal-000001"><span class="s2071494DefaultParagraphFont">(8)    To require borrowers to search or obtain insurance of title to real estate or chattels taken as security;</span></p><p dir="ltr" class="s2071494Normal-000001"><span class="s2071494DefaultParagraphFont">(9)    To maintain adequate insurance against such other risks relating to the bank premises, its deposits, vaults and offices as he may determine to be necessary and appropriate for the protection of deposits and the public.</span></p><p dir="ltr" class="s2071494Normal"><span xml:space="preserve" class="s2071494000002"> </span></p><p dir="ltr" class="s2071494Normal"><span class="s2071494SCL">Source:</span><span xml:space="preserve" class="s2071494SCL-000003"> SL 1915, ch 102, art 2, § 21; RC 1919, § 8968; SDC 1939, § 6.0434; SDCL, § 51-12-1; SL 1969, ch 11, § 2.17 (3); SL 1970, ch 265, § 11; SL 1988, ch 377, § 40; SDCL, § 51-16-26.</span></p></div></body></html>