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32-3-41Liens noted on certificate valid against creditors of debtor, subsequent purchasers, and other claimants--Perfection of liens noted on-line .

A security interest, mechanic's lien, or similar instrument other than a financing statement covering a motor vehicle, trailer, or semitrailer, or any vehicle required to be titled under the provisions of this chapter, is valid against the creditors of the debtor, whether armed with process or not, and subsequent purchasers and other lien holders or claimants, but otherwise is not valid against them if notation of the lien has been made by the seller, buyer, owner, holder of the instrument, or an agent of the secretary on the manufacturer's statement of origin or the manufacturer's certificate of origin. In the case of a certificate of title, if a notation of the lien has been made by the secretary, an agent of the secretary, or a county treasurer on the face of the certificate of title, or if notation of the lien has been made by the seller, buyer, owner, holder of the instrument, or agent of the secretary on the reverse of the certificate of title, the lien is valid against the creditors of the debtor, whether armed with process or not, and subsequent purchasers and other lien holders or claimants, but otherwise is not valid against them. A lien is perfected if it has been noted on the title pursuant to this section, § 32-3-29, or § 32-3-70 and entered into the electronic title file system.

Source: SDC 1939, § 44.0203 (1) as added by SL 1951, ch 229, § 3; SL 1965, ch 186, § 3; SL 1967, ch 187; SL 1989, ch 257, § 39; SL 1997, ch 180, § 1; SL 1998, ch 171, § 1; SL 2003, ch 160, § 5; SL 2012, ch 159, § 1; SL 2017, ch 128, § 4.


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