This text of South Dakota § 51A-6A-19.1 (Additional capital requirements--Safety and soundness factors to be considered--Effective date of order--Hearing.) is published on Counsel Stack Legal Research, covering South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
The director may require additional capital for an existing trust company if the director finds the condition and operations of an existing trust company requires additional capital consistent with the safety and soundness of the trust company. The safety and soundness factors to be considered by the director in the exercise of such discretion include:
(1)The nature and type of business conducted;
(2)The nature and degree of liquidity in assets held in a corporate capacity;
(3)The amount of fiduciary assets under management or administration;
(4)The type of fiduciary assets held and the depository of such assets;
(5)The complexity of fiduciary duties and degree of discretion undertaken;
(6)The competence and experience of management;
(7)The extent and adequacy o
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The director may require additional capital for an existing trust company if the director finds the condition and operations of an existing trust company requires additional capital consistent with the safety and soundness of the trust company. The safety and soundness factors to be considered by the director in the exercise of such discretion include: (1) The nature and type of business conducted; (2) The nature and degree of liquidity in assets held in a corporate capacity; (3) The amount of fiduciary assets under management or administration; (4) The type of fiduciary assets held and the depository of such assets; (5) The complexity of fiduciary duties and degree of discretion undertaken; (6) The competence and experience of management; (7) The extent and adequacy of internal controls; (8) The presence or absence of annual unqualified audits by an independent certified public accountant; (9) The reasonableness of business plans for retaining or acquiring additional capital; (10) The existence and adequacy of insurance obtained or held by the trust company for the purpose of protecting its clients, beneficiaries, and grantors; and (11) Any other factor deemed relevant by the director. The proposed effective date of an order requiring an existing trust company to increase its capital must be stated in the order as on or after the thirty-first day after the date of the proposed order. Unless the trust company requests a hearing before the commission in writing before the effective date of the proposed order, the order becomes effective and is final. Any hearing before the commission shall be held pursuant to chapter 1-26 .