§ 51A-14-4 — Conversion from national bank, federal savings association, or federal savings bank to state bank.

Any national bank, federal savings association, or federal savings bank that desires to take the necessary steps to effect dissolution as a national bank, a federal savings association or a federal savings bank with the federal regulatory authority having jurisdiction may make application to the director to reorganize as a state bank. An application for conversion to a state bank shall consist of a letter of intent signed by a majority of the institution's board of directors together with any additional information required by the director. The stockholders of the national bank, federal savings association, or federal savings bank shall make, execute, and acknowledge articles of incorporation as required by this title. Upon receipt of an application for approval of a conversion, the director shall conduct such investigation as he may deem necessary to ascertain whether: (1) The letter of intent and supporting items satisfy the requirements of this title; (2) The plan of conversion adequately protects the interests of depositors; (3) The requirements for a conversion under all applicable laws have been satisfied, and the resulting state bank would satisfy the requirements for banks authorized by this title; and (4) The resulting state bank will possess an adequate capital structure. Upon filing and approval of such articles as provided by this title, and upon the issuance of a certificate of authority by the director as provided herein, the institution may transact business as a state bank, and thereupon all assets, real and personal, of the dissolved national bank, federal savings association, or federal savings bank shall be vested in and become the property of the state bank.

Legislative History

SDC 1939, § 6.0407; SDCL § 51-13-3; SL 1969, ch 11, § 12.3; SL 1988, ch 377, § 158; SDCL § 51-26-3; SL 1993, ch 352; SL 2012, ch 252, § 24.