20:07:22:04.  Trust administration defined. For purposes of SDCL 51A-6A-11.1, trust administration in South Dakota means that at least three of the following are performed wholly or partly in South Dakota for the accounts under the management, administration, or custody of the trust company:

          (1)  Annual account reviews;

          (2)  Annual investment reviews;

          (3)  Trust accountings;

          (4)  Account correspondence;

          (5)  Completing trust account tax returns; or

          (6)  Distributing account statements.

          Notwithstanding the definition above, trust administration as set forth in SDCL 51A-6A-11.1(4) may be satisfied by other means if the director determines the nature and degree of risks presented by the trust company are low based upon a review of the size, nature, and number of accounts administered by the trust company and the number of employees or persons performing services for the trust company in South Dakota.

          If the size, risk profile, or rate of growth of a trust company changes, the director may, to the extent it is deemed necessary, require additional administration be performed in South Dakota to satisfy the requirement in SDCL 51A-6A-11.1(4) as defined by this section.

          Source: 36 SDR 208, effective June 30, 2010; 39 SDR 55, effective October 8, 2012.

          General Authority: SDCL 51A-6A-11.1.

          Law Implemented: SDCL 51A-6A-11.1, 55-3-39