A corporate trustee which is subject to regulation and supervision by state or federal authorities may deposit with itself trust funds which are being held necessarily pending investment, distribution, or the payment of debts, provided it pays into the trust for such deposit such interest as it is required by statute to pay on uninvested trust funds, or, if there be no such statute, the same rate of interest it pays upon similar nontrust deposits, and maintains in its trust department as security for all such deposits a separate fund consisting of securities legal for trust investments and at all times equal in total market value to the amount of the deposits. But no such security shall be required to the extent that the deposit is insured or given a preference by any state or federal law.
S.D. Codified Laws § 55-4-11
Corporate trustee depositing trust funds with self--Interest
Known as the Uniform Trusts Act
The act spans §§ 55–55 (57 sections).
Applied in 1 court decision — leading case Matter of Guardianship of Rich (1994)
Most recently applied in Matter of Guardianship of Rich (July 1994)
Source: SL 1943, ch 308, § 4; SDC Supp 1960, § 59.0504 (1).
Official source: South Dakota Legislature. Reproduced from public-domain South Dakota statutes; confirm against the official source for the current text. Not legal advice.