South Dakota Administrative Rules
Title 20 - PUBLIC SAFETY
Article 20:07 - BANKING
Chapter 20:07:18 - Purchase of life insurance
Section 20:07:18:04 - Limitations on purchase of life insurance on borrowers
Universal Citation: SD Admin Rules 20:07:18:04
Current through Register Vol. 50, page 114, March 25, 2024
The purchase of cash value life insurance on borrowers by a bank is subject to the following limitations:
(1) The face value of the life insurance policy may not exceed the borrower's obligation to the bank; and
(2) A second beneficiary shall be named by the borrower who, if the borrower dies, shall receive any amount in excess of the obligations to the bank because of the repayment of the debt to the bank.
General Authority: SDCL 51A-2-13, 51A-4-42.
Law Implemented: SDCL 51A-4-42.
Disclaimer: These regulations may not be the most recent version. South Dakota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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