51A-4-15. Rediscounting of negotiable paper--Limitation on pledge of assets as security.A bank may rediscount in good faith and endorse any of its negotiable paper. However, no bank may pledge any of its assets as collateral security for the payment thereof, except as required by rules of the federal reserve bank. The director may require such bank to repay any such rediscounts. Source: SL 1909, ch 222, art 2, §33; SL 1915, ch 102, art 2, §37; SL 1918 (SS), ch 29; RC 1919, §8984; SL 1919, ch 124; SL 1925, ch 92; SL 1927, ch 53; SL 1933, ch 50; SDC 1939, §6.0425; SDCL §51-6-17; SL 1969, ch 11, §4.10; SDCL §51-18-11; SL 2012, ch 252, §14.
South Dakota Legal Code