S.D. Codified Laws § 51A-3-20
This is the official text of S.D. Codified Laws § 51A-3-20, part of South Dakota’s Codified Laws — part of the compiled statutory law of South Dakota, published by the state as "Codified Laws." Browse the sections below, each linked to its official government source.
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Recovery of dividends paid when capital impaired
Official statutory text
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.
Source: 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.
Source: 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.
Status: in_force · Read it on the official government site
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