20-4-1      Obligation extinguished by full performance.
20-4-2      Joint obligation extinguished by performance by one person.
20-4-3      Joint right extinguished by performance to one person--Deposit excepted.
20-4-4      Obligation extinguished by performance in manner directed by creditor.
20-4-5      Indivisible obligation partially extinguished by partial performance if benefit voluntarily retained--Exception.
20-4-6      Performance applicable to two or more obligations.
20-4-7      Performance applied according to debtor's intent.
20-4-8      Application of performance according to creditor's selection--Application to rights held individually and as trustee--Rescission of application made by creditor.
20-4-9      Application of performance in absence of selection by parties.

20-4-1. Obligation extinguished by full performance.

Full performance of an obligation, by the party whose duty it is to perform it, or by any other person on his behalf, and with his assent, if accepted by the creditor, extinguishes it.

Source: CivC 1877, § 827; CL 1887, § 3451; RCivC 1903, § 1144; RC 1919, § 751; SDC 1939, § 47.0201.

20-4-2. Joint obligation extinguished by performance by one person.

Performance of an obligation, by one of several persons who are jointly liable under it, extinguishes the liability of all.

Source: CivC 1877, § 828; CL 1887, § 3452; RCivC 1903, § 1145; RC 1919, § 752; SDC 1939, § 47.0202.

20-4-3. Joint right extinguished by performance to one person--Deposit excepted.

An obligation in favor of several persons is extinguished by performance rendered to any of them, except in the case of a deposit made by owners in common, or in joint ownership, which is regulated by the law on deposit.

Source: CivC 1877, § 829; CL 1887, § 3453; RCivC 1903, § 1146; RC 1919, § 753; SDC 1939, § 47.0203.

20-4-4. Obligation extinguished by performance in manner directed by creditor.

If a creditor, or any one of two or more joint creditors, at any time directs the debtor to perform his obligation in a particular manner, the obligation is extinguished by performance in that manner, even though the creditor does not receive the benefit of such performance.

Source: CivC 1877, § 830; CL 1887, § 3454; RCivC 1903, § 1147; RC 1919, § 754; SDC 1939, § 47.0204.

20-4-5. Indivisible obligation partially extinguished by partial performance if benefit voluntarily retained--Exception.

A partial performance of an indivisible obligation extinguishes a corresponding proportion thereof, if the benefit of such performance is voluntarily retained by the creditor, but not otherwise. If such partial performance is of such a nature that the creditor cannot avoid retaining it, without injuring his own property, his retention thereof is not presumed to be voluntary.

Source: CivC 1877, § 831; CL 1887, § 3455; RCivC 1903, § 1148; RC 1919, § 755; SDC 1939, § 47.0205.

20-4-6. Performance applicable to two or more obligations.

Where a debtor, under several obligations to another, does an act by way of performance in whole or in part, which is equally applicable to two or more of such obligations, such performance must be applied as provided by §§ 20-4-7 to 20-4-9, inclusive.

Source: CivC 1877, § 833; CL 1887, § 3457; RCivC 1903, § 1150; RC 1919, § 757; SDC 1939, § 47.0207.

20-4-7. Performance applied according to debtor's intent.

If, at the time of the performance by a debtor described by § 20-4-6, the intention or desire of the debtor that such performance should be applied to the extinction of any particular obligation, be manifested to the creditor, it must be so applied.

Source: CivC 1877, § 833, subdiv 1; CL 1887, § 3457, subdiv 1; RCivC 1903, § 1150, subdiv 1; RC 1919, § 757 (1); SDC 1939, § 47.0207 (1).

20-4-8. Application of performance according to creditor's selection--Application to rights held individually and as trustee--Rescission of application made by creditor.

If no application be made pursuant to § 20-4-7, the creditor, within a reasonable time after such performance, may apply it toward the extinction of any obligation, performance of which was due to him from the debtor at the time of such performance; except that if similar obligations were due to him, both individually and as a trustee, he must, unless otherwise directed by the debtor, apply the performance to the extinction of all such obligations in equal proportion; and an application once made by the creditor cannot be rescinded without the consent of the debtor.

Source: CivC 1877, § 833, subdiv 2; CL 1887, § 3457, subdiv 2; RCivC 1903, § 1150, subdiv 2; RC 1919, § 757 (2); SDC 1939, § 47.0207 (2).

20-4-9. Application of performance in absence of selection by parties.

If neither party makes application pursuant to § 20-4-7 or § 20-4-8 within a reasonable time after performance, the performance must be applied to the extinction of obligations in the following order; and if there be more than one obligation of a particular class, to the extinction of all in that class, ratably:

(1)    Of interest due at the time of the performance;

(2)    Of principal due at that time;

(3)    Of the obligation earliest in date of maturity;

(4)    Of an obligation not secured by a lien or collateral undertaking;

(5)    Of an obligation secured by a lien or collateral undertaking.

Source: CivC 1877, § 833, subdiv 3; CL 1887, § 3457, subdiv 3; RCivC 1903, § 1150, subdiv 3; RC 1919, § 757 (3); SDC 1939, § 47.0207 (3).