ARSD 20:07:16:05. Loans to subsidiaries

Loans to a subsidiary made in the normal course of business shall not be construed as a direct investment in that subsidiary. Maximum loan limitations for individual borrowers provided in SDCL 51A-12-2 apply to subsidiaries of the bank in aggregate. Any bank that exceeds loan limits to its subsidiaries in the aggregate amount must give notice to the division and receive written approval.