South Dakota Administrative Rules
Title 20 - PUBLIC SAFETY
Article 20:07 - BANKING
Chapter 20:07:16 - Bank subsidiaries
Section 20:07:16:04 - Conduct and practices
Current through Register Vol. 50, page 114, March 25, 2024
A bank subsidiary as defined in § 20:07:16:01 shall at all times conduct its business and operations in a safe and sound manner, consistent with prudent business practices. A bank subsidiary shall also meet the following requirements:
(1) The subsidiary shall conduct business pursuant to independent policies and procedures designed to make known to the public that the subsidiary exists as an organization separate from the parent bank;
(2) The subsidiary shall maintain separate accounting procedures and corporate records that are open to examination by the division;
(3) The subsidiary shall observe separate corporate formalities.
General Authority: SDCL 51A-2-13 to 51A-2-15.
Law Implemented: SDCL 51A-4-1.