Regulatory Alerts2012-07-03
Implementing Legal Lending Limit Exception
The South Dakota Division of Banking issued guidance implementing Senate Bill 158, which allows state-chartered banks to exceed traditional lending limits for specific agricultural operating credits. Banks must obtain Director approval for exceptions that are fully secured, not adversely classified, and subject to aggregate caps based on Tier One Leverage Capital. The directive outlines strict eligibility criteria, application procedures, and expiration rules to help banks retain high-quality borrowers while maintaining regulatory compliance.
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