Section 51A-4-15 - Rediscounting negotiable paper--Limitation on pledge of assets as security--Prohibition against sale of commercial paper with recourse. - South Dakota Statutes

51A-4-15. Rediscounting negotiable paper--Limitation on pledge of assets as security--Prohibition against sale of commercial paper with recourse. A bank may rediscount in good faith and endorse any of its negotiable paper, but it shall be unlawful for any bank to pledge any of its assets as collateral security for the payment thereof, except as required by rules of the federal reserve bank. The director may in his discretion require such bank to repay any such rediscounts.
A bank may not sell notes, loans, participation in loans, securities, or any other commercial paper with recourse.

Source: SL 1909, ch 222, art 2, § 33; SL 1915, ch 102, art 2, § 37; SL 1918 (SS), ch 29; RC 1919, § 8984; SL 1919, ch 124; SL 1925, ch 92; SL 1927, ch 53; SL 1933, ch 50; SDC 1939, § 6.0425; SDCL, § 51-6-17; SL 1969, ch 11, § 4.10; SDCL, § 51-18-11.