Regulatory Alerts2020-01-01
New Trust Legislation
The South Dakota Division of Banking issued Memorandum 20-023 to inform trust companies and bank trust departments of changes enacted in House Bill 1028. The legislation amends existing statutes to ensure limited liability company trust companies are subject to the same dividend restrictions as corporations and prohibits special purpose entities from using the word 'trust' in their names. These amendments, which became effective on July 1, 2018, aim to align regulatory treatment and protect the integrity of trust entity naming conventions.
Share