Director's authority to suspend activities and take possession of bank--Grounds.

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51A-15-11. Director's authority to suspend activities and take possession of bank--Grounds.

After a hearing with three days' oral or written notice to a majority of the members of the board of directors, the director may, with the consent of a majority of the members of the commission, suspend all activities and take possession of the business and property of a bank if the director finds:

(1)The bank's capital is impaired or the bank is otherwise in an unsound condition;

(2)The bank's business is being conducted in an unlawful or unsound manner;

(3)The bank is unable to continue normal operations;

(4)The bank refuses to permit, obstructs, or impedes an examination as provided in §51A-2-18;

(5)The bank places its affairs and assets under the control of the director;

(6)A parent corporation refuses to permit, obstructs, or impedes an examination as provided in §51A-2-37;

(7)The bank is insolvent; or

(8)The bank's insurance has been terminated pursuant to an action initiated by the Federal Deposit Insurance Corporation under 12 U.S.C. §1818(a), as of January 1, 2015.

Source: SL 1909, ch 222, art 1, §9; SL 1909, ch 222, art 2, §20; SL 1911, ch 256, §§9, 26; SL 1915, ch 102, art 1, §9; SL 1915, ch 102, art 2, §23; RC 1919, §§8925, 8970, 9056; SDC 1939, §6.0604; SDCL §51-14-11; SL 1969, ch 11, §13.5; SL 1970, ch 265, §65; SL 1981, ch 346, §68; SL 1982, ch 336, §2; SL 1988, ch 377, §165; SDCL §51-27-10; SL 2015, ch 239, §9.


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