South Dakota Codified Laws 51A-4-27. Investments in agricultural credit corporations and livestock loan companies
Any bank may purchase and own stock and capital notes or other evidence of debt issued by:
(1) An agricultural credit corporation or livestock loan company, or its affiliate, the principal business of which corporation is the extension of short and intermediate term credit to farmers and ranchers, including partnerships and corporations legally engaged in farming as defined in subdivision 47-9A-2(4) in accordance with the provisions of chapter 47-9A; and
Terms Used In South Dakota Codified Laws 51A-4-27
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
(2) Exempt corporations as provided in §§ 47-9A-10 and 47-9A-11.
Unless a bank owns at least eighty percent of the stock of the agricultural credit corporation or livestock loan company, it may not obligate more than twenty percent of its capital stock and surplus for those purposes. Under no circumstances may a bank obligate more than twenty percent of its capital stock and surplus and undivided profits for that purpose. Any agricultural credit corporation or livestock loan company, or its affiliate, has the same privileges as a state chartered bank or trust company provided in § 47-9A-4.
Source: SL 1977, ch 398; SL 1981, ch 346, § 36; SL 1982, ch 335; SL 1983, ch 358; SL 1988, ch 377, § 98; SDCL, § 51-18-23.1.