Property authorized to be purchased to satisfy debts--Limitation on period of retention.

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51A-4-10. Property authorized to be purchased to satisfy debts--Limitation on period of retention.

A bank may, by itself or through a subsidiary, acquire, hold and convey property of any kind to satisfy debts previously contracted in good faith and in the ordinary course of business at a purchase price which is no greater than the aggregate of the debt, interest and other costs, provided that such property shall be held subject to the following limitations:

(1)Personal property held by the bank shall be sold within six months or such additional period not exceeding one year as the director may allow;

(2)Real property shall be sold within five years, unless an extension be granted by the director.

Source: SL 1891, ch 27, §5; RCivC 1903, §851; SL 1909, ch 222, art 2, §16; SL 1915, ch 102, art 2, §18; RC 1919, §8965; SDC 1939, §6.0410 (2), (3); SDCL, §51-11-19; SL 1969, ch 11, §4.5; SL 1970, ch 265, §27; SL 1981, ch 346, §30; SL 1988, ch 377, §85; SDCL, §51-18-5.


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