51A-3-17. Preferred stock, capital notes, and debentures outstanding--Restrictions on dividends.No dividends may be declared or paid on the capital stock of any bank which has outstanding capital notes or debentures, or if preferred stock has been issued without prior written approval of the director unless:(1)In the case of an issue of capital notes or debentures, the surplus and undivided profits of such bank equal such issue, the retirement requirements and interest on the issue have been paid; or(2)In the case of an issue of preferred stock, all the terms of issue shall have been satisfied. Source: SL 1933 (SS), ch 1, §4; SL 1935, ch 61, §2; SDC 1939, §6.0409; SL 1943, ch 16; SL 1955, ch 10; SDCL, §§51-4-12, 51-4-24; SL 1969, ch 11, §3.6; SDCL, §51-17-7; SL 1988, ch 377, §59; SDCL, §51-17-20.2.
South Dakota Legal Code