ARSD 20:07:16:04. Conduct and practices

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) 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) The subsidiary shall maintain separate accounting procedures and corporate records that are open to examination by the division; (3) The subsidiary shall observe separate corporate formalities.