S.D. Codified Laws § 57A-9-605

Current through the 2024 Legislative Session
Section 57A-9-605 - Unknown debtor or secondary obligor
(a) Except as provided in subsection (b), a secured party does not owe a duty based on its status as secured party:
(1) To a person that is a debtor or obligor, unless the secured party knows:
(A) That the person is a debtor or obligor;
(B) The identity of the person; and
(C) How to communicate with the person; or
(2) To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
(A) That the person is a debtor; and
(B) The identity of the person.
(b) A secured party owes a duty based on its status as a secured party to a person if, at the time the secured party obtains control of collateral that is a controllable account, controllable electronic record, or controllable payment intangible or at the time the security interest attaches to the collateral, whichever is later:
(1) The person is a debtor or obligor; and
(2) The secured party knows that the information in subsection (a)(1)(A), (B), or (C) relating to the person is not provided by the collateral, a record attached to or logically associated with the collateral, or the system in which the collateral is recorded.

SDCL 57A-9-605

SL 2000, ch 231; SL 2024, ch 198, §81.
Amended by S.L. 2024, ch. 198,s. 81, eff. 7/1/2024.