Statutes, codes, and regulations
South Dakota Codified Laws
Title 51A - BANKS AND BANKING
Chapter 3 - ORGANIZATION, APPLICATIONS, AND CAPITAL STRUCTURE OF BANKING CORPORATIONS
Section 51A-3-20 - Recovery of dividends paid when capital impaired

S.D. Codified Laws § 51A-3-20

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Current through the 2024 Legislative Session
Section 51A-3-20 - Recovery of dividends paid when capital impaired

Dividends paid to any stockholder of a bank, which shall in any way impair or diminish the capital, may be recovered from any stockholder receiving the same unless the capital impairment be subsequently made good. The directors of any bank, who pay a dividend when the bank is insolvent or in danger of insolvency, or when there are not sufficient net profits available, or when the bank is subject to an order pursuant to § 51A-2-26 prohibiting the payment of dividends, shall be jointly and severally liable to the creditors of the bank in existence at that time in double the amount of such dividend.

SDCL 51A-3-20

SL 1909, ch 222, art 2, § 37; SL 1915, ch 102, art 2, § 41; RC 1919, § 8989; SDC 1939, § 6.0440; SDCL, §§ 51-4-25, 51-4-27; SL 1969, ch 11, § 3.9; SDCL, § 51-17-10; SL 1988, ch 377, § 61; SDCL, § 51-17-20.5.