58-27-80. Holding in name of clearing corporation, custodian bank or nominee--Conditions.Investments may be held in the name of a clearing corporation or of a custodian bank or in the name of the nominee of either under the following conditions:(1)The clearing corporation, custodian bank, or nominee is legally authorized to hold the particular investment for the account of others;(2)If the investment is evidenced by a certificate and held in the name of a custodian bank or the nominee of a custodian bank, a written agreement shall provide that certificates so deposited shall at all times be kept separate and apart from other deposits with the depository so that at all times they may be identified as belonging solely to the company making the deposit; and(3)If a clearing corporation is to act as depository, the investment may be merged or held in bulk in the clearing corporation's or its nominee's name with other investments deposited with the clearing corporation by any other person if a written agreement provides that adequate evidence of the deposit is to be obtained and retained by the company or a custodian bank. Source: SL 1983, ch 377, §3.
South Dakota Legal Code