51A-2-24. Accounting practices--Valuation of assets--Required practices to protect loans.The director may require any bank:(1)To maintain its accounts in a prescribed manner having regard for the size of the bank;(2)To observe methods and standards for determining the value of various types of assets;(3)To charge off the whole or part of any asset which could not then be lawfully acquired;(4)To write down an asset to its market value;(5)To record liens and other interests in property;(6)To obtain a financial statement and adequate credit information from borrowers;(7)To require borrowers to obtain insurance against damage to real or personal property taken as security;(8)To require borrowers to search or obtain insurance of title to real estate or chattels taken as security;(9)To maintain adequate insurance against such other risks relating to the bank premises, its deposits, vaults and offices as he may determine to be necessary and appropriate for the protection of deposits and the public. Source: SL 1915, ch 102, art 2, §21; RC 1919, §8968; SDC 1939, §6.0434; SDCL, §51-12-1; SL 1969, ch 11, §2.17 (3); SL 1970, ch 265, §11; SL 1988, ch 377, §40; SDCL, §51-16-26.
South Dakota Legal Code