law

Special Trust Account (South Dakota)

A South Dakota broker who holds a principal's money under a written contract must deposit it in a special trust account at a federally insured institution by the first legal banking day after the contract is accepted, unless all parties agree otherwise in writing. The broker must do a three-way reconciliation of bank statement, trust ledger, and check register at least monthly. Only a small amount of broker funds for bank fees is allowed; otherwise it is commingling.