A bank subsidiary as defined in § 20:07:16:01 shall at all times conduct its business and operations in a safe and sound manner, consistent with prudent business practices. A bank subsidiary shall also meet the following requirements:

1. (1) The subsidiary shall conduct business pursuant to independent policies and procedures designed to make known to the public that the subsidiary exists as an organization separate from the parent bank;
2. (2) The subsidiary shall maintain separate accounting procedures and corporate records that are open to examination by the division;
3. (3) The subsidiary shall observe separate corporate formalities.

Source: 12 SDR 106, effective January 1, 1986; 12 SDR 151, 12 SDR 155, effective July 1, 1986.

General Authority: SDCL 51A-2-13 to 51A-2-15.

Law Implemented: SDCL 51A-4-1.