Regulatory Alerts2011-08-11
South Dakota Division of Banking Interpretation on Borrowing by Banks
The South Dakota Division of Banking issued an interpretation clarifying that state-chartered banks possess the same broad borrowing powers as national banks under SDCL 51A-2-14.1. This authority allows banks to borrow money and pledge assets in the usual course of business, superseding the restrictive purposes outlined in ARSD 20:07:03:26. The Division will evaluate these borrowing activities during safety and soundness examinations to ensure institutional stability.
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