# S.D. Codified Laws § 51A-15-11: Director's authority to suspend activities and take possession of bank--Grounds

> South Dakota · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-11

## Section

- **Citation:** S.D. Codified Laws § 51A-15-11
- **Heading:** Director's authority to suspend activities and take possession of bank--Grounds
- **Jurisdiction:** South Dakota
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** SD Code / Title 51A / Chapter 15 / Section 51A-15-11

## Text

After a hearing with three days' oral or written notice to a majority of the members of the board of directors, the director may, with the consent of a majority of the members of the commission, suspend all activities and take possession of the business and property of a bank if the director finds:

(1) The bank's capital is impaired or the bank is otherwise in an unsound condition;

(2) The bank's business is being conducted in an unlawful or unsound manner;

(3) The bank is unable to continue normal operations;

(4) The bank refuses to permit, obstructs, or impedes an examination as provided in § 51A-2-18 ;

(5) The bank places its affairs and assets under the control of the director;

(6) A parent corporation refuses to permit, obstructs, or impedes an examination as provided in § 51A-2-37 ;

(7) The bank is insolvent; or

(8) The bank's insurance has been terminated pursuant to an action initiated by the Federal Deposit Insurance Corporation under 12 U.S.C. § 1818(a), as of January 1, 2015.

Source: SL 1909, ch 222, art 1, § 9; SL 1909, ch 222, art 2, § 20; SL 1911, ch 256, §§ 9, 26; SL 1915, ch 102, art 1, § 9; SL 1915, ch 102, art 2, § 23; RC 1919, §§ 8925, 8970, 9056; SDC 1939, § 6.0604; SDCL § 51-14-11; SL 1969, ch 11, § 13.5; SL 1970, ch 265, § 65; SL 1981, ch 346, § 68; SL 1982, ch 336, § 2; SL 1988, ch 377, § 165; SDCL § 51-27-10; SL 2015, ch 239, § 9.

## Nearby sections

- [S.D. Codified Laws § 51A-15-1 Voluntary liquidation--Requirements for approval](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-1.md)
- [S.D. Codified Laws § 51A-15-2 Ceasing to do business and winding up affairs on voluntary liquidation](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-2.md)
- [S.D. Codified Laws § 51A-15-3 Notice of voluntary liquidation--Manner of publication--Contents](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-3.md)
- [S.D. Codified Laws § 51A-15-4 Resignation of fiduciary positions and settlement of accounts on voluntary liquidation](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-4.md)
- [S.D. Codified Laws § 51A-15-5 Disposition of safe deposit on voluntary liquidation](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-5.md)
- [S.D. Codified Laws § 51A-15-6 Depositor's or creditor's rights not impaired by voluntary liquidation--Return of safe deposit rental](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-6.md)
- [S.D. Codified Laws § 51A-15-7 Distribution of assets after discharge of obligations on voluntary liquidation--Disposition of unclaimed distributions](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-7.md)
- [S.D. Codified Laws § 51A-15-8 Authority of director to take possession of bank in voluntary liquidation](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-8.md)
- [S.D. Codified Laws § 51A-15-9 Reports of progress in voluntary liquidation--Order and certificate of dissolution](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-9.md)
- [S.D. Codified Laws § 51A-15-10 Cancellation of voluntary liquidation](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-10.md)
- [S.D. Codified Laws § 51A-15-11 Director's authority to suspend activities and take possession of bank--Grounds](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-11.md)
- [S.D. Codified Laws § 51A-15-12 "Insolvent" defined](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-12.md)
- [S.D. Codified Laws § 51A-15-13 Receipt of deposits by insolvent bank unlawful--Felony](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-13.md)
- [S.D. Codified Laws § 51A-15-14 Notice of suspension and possession](https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-14.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_SD_T51A_C15_S51A-15-11. Check the current official text before relying on it. Not legal advice.