Section 51A-2-38 - Acquisition of shares of bank--Out-of-state bank holding company--Defined--Approval by banking commission--Corporation other than bank holding company.
51A-2-38. Acquisition of shares of bank--Out-of-state bank holding company--Defined--Approval by banking commission--Corporation other than bank holding company. Subject to the provisions of this chapter and to the approval of the banking commission, a bank holding company, as defined in the Bank Holding Company Act of 1956, as amended, 12 U.S.C. § 1841, et seq., the principal place of business of whose banking subsidiaries is located outside the state:
(a) May acquire all or substantially all of the shares of one or more new banks which are to be established under the laws of this state, or one or more new national banks which are to be located in this state, and
(b) May acquire all or substantially all of the shares of one or more existing national or state banks located in or established under the laws of this state.
No proposed acquisition pursuant to §§ 51A-2-38 to 51A-2-41, inclusive, may be approved by the banking commission, unless the banking commission finds that:
(1) The statutes of the jurisdiction in which the operations of the out-of-state bank holding company's banking subsidiaries are principally conducted permit or specifically authorize the direct or indirect acquisition of control of one or more banking institutions in such jurisdiction by a bank holding company or subsidiary thereof, the operations of which bank holding company's banking subsidiaries are principally conducted in this state; or
(2) Such statutes of the jurisdiction in which the operations of the out-of-state bank holding company's banking subsidiaries are principally conducted authorize the acquisition of control because the out-of-state bank holding company or subsidiary is authorized by §§ 51A-2-38 to 51A-2-41, inclusive, to acquire control of and hold shares of banking institutions in this state; and
(3) The direct or indirect acquisition of control by a bank holding company or subsidiary thereof, under such statutes, does not affect the powers or privileges of the banking institution over which control is obtained, nor is any such acquisition subject to conditions or restrictions materially limiting the ability of a bank holding company or subsidiary thereof to acquire banking institutions generally in such jurisdiction if such conditions or restrictions would not apply with equal effect to the acquisition of banking institutions in such jurisdiction by an out-of-state bank holding company, or subsidiary thereof, which out-of-state bank holding company or subsidiary conducts its principal banking business in such jurisdiction.
For purposes of this section, an out-of-state bank holding company is a bank holding company as defined in the Bank Holding Company Act of 1956 as amended, 12 U.S.C. § 1841, et seq., the principal place of business whose banking subsidiaries is located outside the state. The jurisdiction in which an out-of-state bank holding company conducts its principal banking business is that state or the District of Columbia in which the total deposits of such company or its banking subsidiaries are largest.
The commission may approve a proposed acquisition under this section without regard to the requirements of subdivisions (1) to (3), inclusive, of this section if the acquisition is part of a transaction in which the federal deposit insurance corporation is providing assistance to one or more national or state banks located in South Dakota or other states pursuant to section 13(c) of the Federal Deposit Insurance Act.
The acquisition of any bank by a corporation that is not a bank holding company is subject to the approval of the commission pursuant to § 51A-2-41.
Source: SL 1980, ch 331, § 1; SL 1983, ch 356, § 2; SL 1988, ch 378, § 1; SDCL, § 51-16-40.