ARSD 20:07:03:11. Requirements for issuing securities

The director may approve the issuance of any security under SDCL 51A-3-16 if the following requirements are met: (1) The issuing bank makes full disclosure of all material facts regarding the bank and the sale in writing to the prospective purchasers. The written disclosure shall be approved by the director prior to any offers to sell. Current stockholders of a bank shall be presumed to have knowledge of all material facts; (2) The director determines the offering to be fair and equitable; and (3) The director determines the offering to be in the best interest of the issuing bank.