Rules and Regulations of South Dakota Trust

The Kingdom Trust Company is a South Dakota-chartered Trust Company, and must comply with that state’s laws and regulations, including:

a) SB 103, section 18, defines trust administration and requires one or more of the following shall services to be performed wholly or partly in South Dakota at the chartered trust company’s registered place of business in South Dakota:
1. Annual account reviews
2. Trust accountings
3. Correspondence
4. Audits physically performed in South Dakota
5. Tax reports sent from South Dakota
6. Governing board, committee, or other trust administration meetings with a quorum physically present in South Dakota; or
7. Such other activities as approved by the director

b) SDCL Chapter 51A-6A The Creation of Trust Companies, contains relevant South Dakota laws governing trust companies chartered in South Dakota It requires trust companies to, among other things:

• Purchase of a fidelity bond and a director’s and officer’s liability insurance policy. The bond and insurance shall be in an amount of not less than one million dollars each.
• Be subject to Examination by the Division of Banking at least once every thirty-six months or more frequently if the director considers it necessary to make a full and careful examination and inquiry into the condition of the affairs of the trust company.
• Hold at least four regular meetings of the board of directors each year, at least one of which shall be held during each calendar quarter. The governing board or an auditor selected by them shall make a thorough examination of the books, records, funds, and securities held by the trust company at each of the quarterly meetings. The result of the examination shall be recorded in detail.
• Make at least one report to the Director of the Division of Banking during each year, at a time determined by the director. The director may require additional reports from each trust company if the director considers it advisable.