51A-6A-11. Authority to transact business required--Violation as misdemeanor.

No individual, firm, or corporation may advertise, publish, or otherwise promulgate that they are engaged in the trust company business, or transact trust company business, without having first obtained authority from the director. Any individual or member of any firm or officer of any corporation violating this section shall be guilty of an unclassified misdemeanor, and upon conviction shall be punished by a fine not exceeding five thousand dollars.

Source: SL 1995, ch 268, § 8.

51A-6A-11.1. Public trust companies to maintain office and perform trust administration in South Dakota.

A public trust company shall:

(1)    Maintain office space in South Dakota for trust company business and for the storage of, and access to, trust company records required by § 51A-6A-30;

(2)    Hold no less than two quarterly governing board meetings with a majority physically present in South Dakota each calendar year;

(3)    Employ, engage, or contract with at least one trust officer or key employee to provide services for the trust company in South Dakota related to the powers of the company in § 51A-6A-29 and to facilitate the examinations required by § 51A-6A-31; and

(4)    Perform trust administration in South Dakota.

The commission may promulgate rules, pursuant to chapter 1-26, to establish additional guidelines regarding what constitutes trust administration in South Dakota for purposes of this section.

Source: SL 2010, ch 232, § 18; SL 2012, ch 233, § 2; SL 2015, ch 240, § 3; SL 2016, ch 231, § 4.

51A-6A-11.2. Office space requirements.

For purposes of § 51A-6A-11.1, office space in South Dakota for each public trust company shall:

(1)    Be in premises distinct and divided from the office space of any other entity;

(2)    Have the name, charter, and certificate of authority of the trust company prominently displayed;

(3)    Have access to premises in or adjacent to the office space sufficient to facilitate onsite examinations by the division;

(4)    To the extent the trust company maintains hard copies of any documents required to be maintained pursuant to § 51A-6A-30, have a secure fireproof file cabinet that contains all such hard copies; and

(5)    To the extent the trust company maintains any record electronically, have a secure computer terminal or other secure electronic device that provides access to such records, including account information, as necessary to facilitate an efficient and effective examination.

For public trust companies chartered in South Dakota prior to July 1, 2016, the division shall determine full compliance with the provisions of this section at the first regular examination after June 30, 2018.

Source: SL 2016, ch 231, § 5.

51A-6A-11.3. Approval of other office space requirements.

Upon application by a trust company, the director may approve office space that does not meet the requirements of § 51A-6A-11.2 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, the structure and business plan of the trust company approved by the division, and the number of employees or persons performing services for the trust company in South Dakota.

If the size, risk profile, or rate of growth of a trust company changes, or if a trust company's office space is insufficient to facilitate onsite examinations by the division, the director may impose additional office space requirements.

Source: SL 2016, ch 231, § 6.