South Dakota Administrative Rules
Title 20 - PUBLIC SAFETY
Article 20:07 - BANKING
Chapter 20:07:03 - Internal management of banks
Section 20:07:03:17 - Allowance for loan and lease losses

Universal Citation: SD Admin Rules 20:07:03:17
Current through Register Vol. 50, page 114, March 25, 2024

A bank must maintain an allowance for loan and lease losses (ALLL) at a level that appropriately covers estimated credit losses on individually evaluated loans as well as estimated credit losses inherent in the remainder of the loan and lease portfolio. The analysis must be performed at least quarterly and must be consistent with generally accepted accounting principles. Bank management must maintain supporting documentation to validate ALLL appropriateness. The bank's board of directors must review the analysis and results and ensure the ALLL is appropriately funded throughout the accounting cycle. The actions of the board of directors must be recorded in the meeting minutes of the board of directors.

General Authority: SDCL 51A-2-13.

Law Implemented: SDCL 51A-2-13.

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