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Codified Laws
44-2 RECORDING, NOTICE AND PRIORITY OF LIENS
CHAPTER 44-2

RECORDING, NOTICE AND PRIORITY OF LIENS

44-2-1      Priority of different liens upon same property--Determination--Time of creation.
44-2-2      Purchase price of real property--Mortgage given for at time of conveyance--Vendor's lien--Priority over other liens--Operation of recording laws.
44-2-3      Public record notice of claim of lien on personal property--No other method provided--Lien statement--Contents.
44-2-4      Lien statement covering personal property--Condition precedent to filing--Mailing of copy to owner of property.
44-2-5      Lien statement covering personal property--Filing in office of register of deeds, effect--Indexing of filed statements--Filing fees.
44-2-6      Lien statement covering personal property--Certified copies of filed statement, filing in other counties, effect, indexing.
44-2-7      Lien statement covering personal property--Assignment and satisfaction of record.
44-2-8      Effect of lien claim or statement--Constructive notice.
44-2-9      Filing of lien statement without reasonable grounds--False statements in instrument--Noncompliance with demand for discharge--Civil action for damages--Penalty included in judgment.



44-2-1Priority of different liens upon same property--Determination--Time of creation.

Other things being equal, different liens upon the same property have priority according to the time of their creation.

Source: CivC 1877, § 1711; CL 1887, § 4335; RCivC 1903, § 2031; RC 1919, § 1536; SDC 1939, § 39.0112.



44-2-2Purchase price of real property--Mortgage given for at time of conveyance--Vendor's lien--Priority over other liens--Operation of recording laws.

A mortgage given for the price of real property at the time of its conveyance and the vendor's lien for unpaid purchase price of real property have priority over all other liens created against the purchaser subject to the operation of the recording law.

Source: CivC 1877, § 1712; CL 1887, § 4336; RCivC 1903, § 2032; RC 1919, § 1537; SDC 1939, § 39.0113.



44-2-3Public record notice of claim of lien on personal property--No other method provided--Lien statement--Contents.

In all cases where no other provision is made by statute for giving public record notice of any claim of lien on personal property any person claiming such lien may give public record notice thereof by sworn statement executed in writing stating:

(1)    The names and addresses of the owner of the property and of the lien claimant;

(2)    A description of the property sufficient to identify it;

(3)    The approximate location of the property;

(4)    The date on which the lien is claimed to have arisen;

(5)    The amount claimed as a lien, and if the lien is one, which may increase by future keep, care, or other transactions related to the property, the probable amounts by which it will increase;

(6)    The circumstances out of which the lien is claimed to have arisen and the circumstances, if any, under which its future accumulations may arise, sufficient to show the legal or contract right to such lien and its accumulations.

Source: SDC 1939, § 39.0124.



44-2-4Lien statement covering personal property--Condition precedent to filing--Mailing of copy to owner of property.

Before filing such lien statement, the person claiming the lien shall mail to the property owner at his last known post office address, by registered or certified mail, a copy of such lien statement and the post office receipt for such mailing shall be attached to the lien statement and filed in the office of the register of deeds.

Source: SDC 1939, § 39.0124.



44-2-5Lien statement covering personal property--Filing in office of register of deeds, effect--Indexing of filed statements--Filing fees.

The sworn statement of such claim of lien together with post office receipt for mailing as required in § 44-2-4 may be filed in the office of the register of deeds of the county in which the property is located at the time of such filing and the register of deeds shall file and index it in the personal property index under the names of the property owner and the lien claimant, both alphabetically arranged, and thereafter it shall have the same effect and term of notice as a chattel mortgage duly filed.

The fees of registers of deeds in such cases shall be same as fees pertaining to chattel mortgages.

Source: SDC 1939, § 39.0124.



44-2-6Lien statement covering personal property--Certified copies of filed statement, filing in other counties, effect, indexing.

Certified copies of the lien statement as filed may be filed in any other county of the state with same effect as certified copies of chattel mortgages are filed and shall be filed and indexed accordingly.

Source: SDC 1939, § 39.0124.



44-2-7Lien statement covering personal property--Assignment and satisfaction of record.

Such liens may be assigned and satisfied of record the same as chattel mortgages.

Source: SDC 1939, § 39.0124.



44-2-8Effect of lien claim or statement--Constructive notice.

A lien claim or statement mailed and filed in accordance with the provisions of this chapter shall from the time of its filing give constructive notice of its contents and a certified copy of such claim or statement filed in any other county of the state shall likewise give constructive notice of its contents from the time of its filing.

Source: SDC 1939, § 39.0124.



44-2-9Filing of lien statement without reasonable grounds--False statements in instrument--Noncompliance with demand for discharge--Civil action for damages--Penalty included in judgment.

Any person who shall file such a lien statement without reasonable grounds to believe that he is entitled to such lien or who shall file a statement containing any willfully made false substantial statement and who shall fail upon demand to execute and deliver to the property owner a full and complete discharge of such lien claim shall be liable in a civil action for all damages, expenses, and costs, including attorney's fees, caused to the property owner and an additional penalty of one hundred dollars to be included in the judgment in such action.

Source: SDC 1939, § 39.0124.