44-9A-1      Liens subject to waiver under chapter.
44-9A-2      Joint check and separate agreement of waiver required.
44-9A-3      Provisions to be entered on reverse of joint check for waiver.
44-9A-4      Endorsement of joint check and execution of agreement as express waiver.
44-9A-5      Release of joint check proceeds at peril of supplier.

44-9A-1. Liens subject to waiver under chapter.

Liens for materials, supplies, equipment, and services furnished under construction contracts to contractors or subcontractors and arising under Title 5 or Title 44 of the South Dakota Codified Laws or by virtue of the common law of this state may be expressly waived as provided in this chapter in addition to all other means presently existing under law by which such liens may be waived.

Source: SL 1971, ch 250, § 1.

44-9A-2. Joint check and separate agreement of waiver required.

Any lien to which a person or corporation furnishing materials, supplies, equipment, and services to a contractor or subcontractor would otherwise be entitled under Title 5 or Title 44 of the South Dakota Codified Laws or by virtue of the common law of this state may be waived to the extent provided in this chapter by such person or corporation by the endorsement of a joint check wherein the payees include the contractor or subcontractor and the person or corporation furnishing materials, supplies, equipment, and services and by the execution of a separate agreement of waiver between the maker of the joint check and such person or corporation.

Source: SL 1971, ch 250, § 2.

44-9A-3. Provisions to be entered on reverse of joint check for waiver.

A joint check as used for the purposes provided in this chapter must have a provision on the reverse side thereof making reference to a separate written agreement of waiver between the maker and the person or corporation furnishing materials, supplies, equipment, or services to the contractor or subcontractor. Such provision must be conspicuous and mention that the payees, by their endorsements and in consideration of the payment represented by the joint check, jointly and severally waive all claims to which they might be entitled under Title 5 and Title 44 of the South Dakota Codified Laws and the common law of South Dakota for all materials, supplies, equipment, and services supplied under a clearly identified contract to the extent of and of the date of the joint check.

Source: SL 1971, ch 250, § 3.

44-9A-4. Endorsement of joint check and execution of agreement as express waiver.

The endorsement of a joint check as provided herein and the execution of a separate written agreement of waiver by a person or corporation furnishing materials, supplies, equipment, and services to an owner, contractor, or a subcontractor shall constitute an express waiver of all rights and claims under Title 5 and Title 44 of the South Dakota Codified Laws and the common law of this state against the owner or contractor and his surety to the extent of, and as of the date of, the joint check endorsed.

Source: SL 1971, ch 250, § 4.

44-9A-5. Release of joint check proceeds at peril of supplier.

It shall be of no consequence under this chapter if the payment or any part thereof in such joint check is released to the contractor or subcontractor by another payee. Release of such funds is at the peril of the person or corporation furnishing materials, supplies, equipment, and services to the contractor or subcontractor.

Source: SL 1971, ch 250, § 4.