<html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-1-201 - General definitions.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s7d849fde61ba42b48f12cbd7f984174fNormal { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s7d849fde61ba42b48f12cbd7f984174fSENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s7d849fde61ba42b48f12cbd7f984174fCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s7d849fde61ba42b48f12cbd7f984174fStatute { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s7d849fde61ba42b48f12cbd7f984174fStatuteNumber2 { margin-left: 1.25in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1-000000 { margin-left: 0.75in; text-indent: 0.00in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s7d849fde61ba42b48f12cbd7f984174f000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s7d849fde61ba42b48f12cbd7f984174fNoIndent { text-indent: 0.00in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s7d849fde61ba42b48f12cbd7f984174fSCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 57A-1-201 - General definitions."><meta property="og:description" content="SDLRC Codified Law 57A-1-201 - General definitions."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-1-201"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fNormal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-1-201" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fSENU">57A-1-201</span></a><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fSENU">. </span><span class="s7d849fde61ba42b48f12cbd7f984174fCL">General definitions.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatute"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(a) Unless the context otherwise requires, words or phrases defined in this section, or in the additional definitions contained in other chapters of this title that apply to particular chapters or parts thereof, have the meanings stated.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatute"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(b) Subject to definitions contained in other chapters of this title that apply to particular chapters or parts thereof:</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(1)    "Action," in the sense of a judicial proceeding, includes recoupment, counterclaim, set-off, suit in equity, and any other proceeding in which rights are determined.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(2)    "Aggrieved party" means a party entitled to pursue a remedy.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(3)    "Agreement," as distinguished from "contract," means the bargain of the parties in fact, as found in their language or inferred from other circumstances, including course of performance, course of dealing, or usage of trade as provided in § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-1-303" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">57A-1-303</span></a><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(4)    "Bank" means a person engaged in the business of banking and includes a savings bank, savings and loan association, credit union, and trust company.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(5)    "Bearer" means a person in control of a negotiable electronic document of title or a person in possession of a negotiable instrument, a negotiable tangible document of title, or a certificated security that is payable to bearer or indorsed in blank.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(6)    "Bill of lading" means a document of title evidencing the receipt of goods for shipment issued by a person engaged in the business of directly or indirectly transporting or forwarding goods. The term does not include a warehouse receipt.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(7)    "Branch" includes a separately incorporated foreign branch of a bank.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(8)    "Burden of establishing" a fact means the burden of persuading the trier of fact that the existence of the fact is more probable than its nonexistence.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(9)    "Buyer in ordinary course of business" means a person that buys goods in good faith, without knowledge that the sale violates the rights of another person in the goods, and in the ordinary course from a person, other than a pawnbroker, in the business of selling goods of that kind. A person buys goods in the ordinary course if the sale to the person comports with the usual or customary practices in the kind of business in which the seller is engaged or with the seller's own usual or customary practices. A person that sells oil, gas, or other minerals at the wellhead or minehead is a person in the business of selling goods of that kind. A buyer in ordinary course of business may buy for cash, by exchange of other property, or on secured or unsecured credit, and may acquire goods or documents of title under a preexisting contract for sale. Only a buyer that takes possession of the goods or has a right to recover the goods from the seller under chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-2" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">57A-2</span></a><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont"> may be a buyer in ordinary course of business. "Buyer in ordinary course of business" does not include a person that acquires goods in a transfer in bulk or as security for or in total or partial satisfaction of a money debt.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(9A)    "Central bank digital currency," a national digital currency issued by a central bank and that is widely available to the general public.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(10)    "Conspicuous," with reference to a term, means so written, displayed, or presented that, based on the totality of the circumstances, a reasonable person against which it is to operate ought to have noticed it. Whether a term is "conspicuous" or not is a decision for the court.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(11)    "Consumer" means an individual who enters into a transaction primarily for personal, family, or household purposes.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(12)    "Contract," as distinguished from "agreement," means the total legal obligation that results from the parties' agreement as determined by this title as supplemented by any other applicable laws.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(13)    "Creditor" includes a general creditor, a secured creditor, a lien creditor, and any representative of creditors, including an assignee for the benefit of creditors, a trustee in bankruptcy, a receiver in equity, and an executor or administrator of an insolvent debtor's or assignor's estate.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(14)    "Defendant" includes a person in the position of defendant in a counterclaim, cross-claim, or third-party claim.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(15)    "Delivery," with respect to an electronic document of title, means voluntary transfer of control; and with respect to an instrument, a tangible document of title, or an authoritative tangible copy of a record evidencing chattel paper, means voluntary transfer of possession.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(16)    "Document of title" means a record (i) that in the regular course of business or financing is treated as adequately evidencing that the person in possession or control of the record is entitled to receive, control, hold, and dispose of the record and the goods the record covers and (ii) that purports to be issued by or addressed to a bailee and to cover goods in the bailee's possession which are either identified or are fungible portions of an identified mass. The term includes a bill of lading, transport document, dock warrant, dock receipt, warehouse receipt, and order for delivery of goods. An electronic document of title is evidenced by a record consisting of information stored in an electronic medium. A tangible document of title is evidenced by a record consisting of information that is inscribed on a tangible medium.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(16A)    "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(17)    "Fault" means a default, breach, or wrongful act or omission.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(18)    "Fungible goods" means:</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber2"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(A)    Goods of which any unit, by nature or usage of trade, is the equivalent of any other like unit; or</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber2"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(B)    Goods that by agreement are treated as equivalent.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(19)    "Genuine" means free of forgery or counterfeiting.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(20)    "Good faith," except as otherwise provided in chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-5" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">57A-5</span></a><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">, means honesty in fact and the observance of reasonable commercial standards of fair dealing.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(21)    "Holder" means:</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber2"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(A)    The person in possession of a negotiable instrument that is payable either to bearer or to an identified person that is the person in possession;</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber2"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(B)    The person in possession of a negotiable tangible document of title if the goods are deliverable either to bearer or to the order of the person in possession; or</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber2"><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(C)    A person in control, other than pursuant to § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-7-106" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">57A-7-106</span></a><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">, of a negotiable electronic document of title.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(22)    "Insolvency proceeding" includes an assignment for the benefit of creditors or other proceeding intended to liquidate or rehabilitate the estate of the person involved.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(23)    "Insolvent" means:</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber2"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(A)    Having generally ceased to pay debts in the ordinary course of business other than as a result of bona fide dispute;</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber2"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(B)    Being unable to pay debts as they become due; or</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber2"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(C)    Being insolvent within the meaning of federal bankruptcy law.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(24)    "Money" means a medium of exchange that is currently authorized or adopted by a domestic or foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries. The term is not intended and cannot be construed to create or adopt a central bank digital currency.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(25)    "Organization" means a person other than an individual.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(26)    "Party," as distinguished from "third party," means a person that has engaged in a transaction or made an agreement subject to this title.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(27)    "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. The term includes a protected series, however denominated, of an entity if the protected series is established under law other than this title that limits, or limits if conditions specified under the law are satisfied, the ability of a creditor of the entity or of any other protected series of the entity to satisfy a claim from assets of the protected series.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(28)    "Present value" means the amount as of a date certain of one or more sums payable in the future, discounted to the date certain by use of either an interest rate specified by the parties if that rate is not manifestly unreasonable at the time the transaction is entered into or, if an interest rate is not so specified, a commercially reasonable rate that takes into account the facts and circumstances at the time the transaction is entered into.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(29)    "Purchase" means taking by sale, lease, discount, negotiation, mortgage, pledge, lien, security interest, issue or reissue, gift, or any other voluntary transaction creating an interest in property.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(30)    "Purchaser" means a person that takes by purchase.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(31)    "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(32)    "Remedy" means any remedial right to which an aggrieved party is entitled with or without resort to a tribunal.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(33)    "Representative" means a person empowered to act for another, including an agent, an officer of a corporation or association, and a trustee, executor, or administrator of an estate.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(34)    "Right" includes remedy.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(35)    "Security interest" means an interest in personal property or fixtures which secures payment or performance of an obligation. "Security interest" includes any interest of a consignor and a buyer of accounts, chattel paper, a payment intangible, or a promissory note in a transaction that is subject to chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">57A-9</span></a><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">. "Security interest" does not include the special property interest of a buyer of goods on identification of those goods to a contract for sale under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-2-401" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">57A-2-401</span></a><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">, but a buyer may also acquire a "security interest" by complying with chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">57A-9</span></a><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">. Except as otherwise provided in § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-2-505" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">57A-2-505</span></a><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">, the right of a seller or lessor of goods under chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-2" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">57A-2</span></a><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont"> or </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-2A" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">57A-2A</span></a><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont"> to retain or acquire possession of the goods is not a "security interest," but a seller or lessor may also acquire a "security interest" by complying with chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">57A-9</span></a><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">. The retention or reservation of title by a seller of goods notwithstanding shipment or delivery to the buyer under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-2-401" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">57A-2-401</span></a><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont"> is limited in effect to a reservation of a "security interest." Whether a transaction in the form of a lease creates a "security interest" is determined pursuant to § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-1-203" rel="noopener"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">57A-1-203</span></a><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(36)    "Send," in connection with a record or notification, means:</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber2"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(A)    To deposit in the mail, deliver for transmission, or transmit by any other usual means of communication, with postage or cost of transmission provided for, addressed to any address reasonable under the circumstances; or</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber2"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(B)    To cause the record or notification to be received within the time it would have been received if properly sent under subparagraph (A).</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(37)    "Sign" means, with present intent to authenticate or adopt a record to:</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber2"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(A)    Execute or adopt a tangible symbol; or</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber2"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(B)    Attach to or logically associate with the record an electronic symbol, sound, or process.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1-000000"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">"Signed," "signing," and "signature" have corresponding meanings.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(38)    "State" means a State of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(39)    "Surety" includes a guarantor or other secondary obligor.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(40)    "Term" means a portion of an agreement that relates to a particular matter.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(41)    "Unauthorized signature" means a signature made without actual, implied, or apparent authority. The term includes a forgery.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(42)    "Warehouse receipt" means a document of title issued by a person engaged in the business of storing goods for hire.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fStatuteNumber1"><span class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont">(43)    "Writing" includes printing, typewriting, or any other intentional reduction to tangible form. "Written" has a corresponding meaning.</span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fNormal"><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174f000001"> </span></p><p dir="ltr" class="s7d849fde61ba42b48f12cbd7f984174fNoIndent"><span xml:space="preserve" class="s7d849fde61ba42b48f12cbd7f984174fDefaultParagraphFont-000002">Source: </span><span class="s7d849fde61ba42b48f12cbd7f984174fSCL">SL 2008, ch 259, § 9; SL 2009, ch 254, §§ 800 to 805; SL 2024, ch 198, § 1.</span></p></div></body></html>