As used in this article the term, total capital, means the sum of primary and secondary capital.

The term, primary capital, means the sum of common stock, perpetual preferred stock, capital surplus, undivided profits, capital reserves, mandatory convertible debt (totheextentof20percentofprimarycapitalexclusiveofsuchdebt), the pro rata share in certain consolidated subsidiaries, and the allowance for loan and lease losses minus those assets classified loss that are subject to charge-off.

The term, secondary capital, means the sum of mandatory convertible debt that is not included in primary capital, limited life preferred stock and subordinated notes and debentures with a weighted average principal maturity later than seven years from the date of issuance. Secondary capital may not be more than 50 percent of primary capital.

Source: 8 SDR 31, effective September 30, 1981; transferred from § 20:07:01:03, 11 SDR 46, effective October 9, 1984; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 13 SDR 37, effective October 9, 1986; 34 SDR 322, effective June 30, 2008.

General Authority: SDCL 51A-2-13.

Law Implemented: SDCL 51A-3-4 , 51A-7-3.