<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-12-105 - Control of controllable electronic record.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s572e8f853b8e4374939ed12944d82549Normal { 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.s572e8f853b8e4374939ed12944d82549SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s572e8f853b8e4374939ed12944d82549CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s572e8f853b8e4374939ed12944d82549Statute { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; 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margin-right: 0; margin-bottom: .001pt; } span.s572e8f853b8e4374939ed12944d82549000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s572e8f853b8e4374939ed12944d82549NoIndent { 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.s572e8f853b8e4374939ed12944d82549DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s572e8f853b8e4374939ed12944d82549SCL { 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-12-105 - Control of controllable electronic record."><meta property="og:description" content="SDLRC Codified Law 57A-12-105 - Control of controllable electronic record."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-12-105"><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="s572e8f853b8e4374939ed12944d82549Normal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-105" rel="noopener"><span class="s572e8f853b8e4374939ed12944d82549SENU">57A-12-105</span></a><span xml:space="preserve" class="s572e8f853b8e4374939ed12944d82549SENU">. </span><span class="s572e8f853b8e4374939ed12944d82549CL">Control of controllable electronic record.</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549Statute"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(a) A person has control of a controllable electronic record if the electronic record, a record attached to or logically associated with the electronic record, or a system in which the electronic record is recorded:</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber1"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(1)    Gives the person:</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber2"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(A)    Power to avail itself of substantially all the benefit from the electronic record; and</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber2"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(B)    Exclusive power, subject to subsection (b), to:</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber3"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(i)    Prevent others from availing themselves of substantially all the benefit from the electronic record; and</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber3"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(ii)    Transfer control of the electronic record to another person or cause another person to obtain control of another controllable electronic record as a result of the transfer of the electronic record; and</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber1"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(2)    Enables the person readily to identify itself in any way, including by name, identifying number, cryptographic key, office, or account number, as having the powers specified in paragraph (1).</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549Statute"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(b) Subject to subsection (c), a power is exclusive under subsection (a)(1)(B)(i) and (ii) even if:</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber1"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(1)    The controllable electronic record, a record attached to or logically associated with the electronic record, or a system in which the electronic record is recorded limits the use of the electronic record or has a protocol programmed to cause a change, including a transfer or loss of control or a modification of benefits afforded by the electronic record; or</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber1"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(2)    The power is shared with another person.</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549Statute"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(c)    A power of a person is not shared with another person under subsection (b)(2) and the person's power is not exclusive if:</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber1"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(1)    The person can exercise the power only if the power also is exercised by the other person; and</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber1"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(2)    The other person:</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber2"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(A)    Can exercise the power without exercise of the power by the person; or</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber2"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(B)    Is the transferor to the person of an interest in the controllable electronic record or a controllable account or controllable payment intangible evidenced by the controllable electronic record.</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549Statute"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(d) If a person has the powers specified in subsection (a)(1)(B)(i) and (ii), the powers are presumed to be exclusive.</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549Statute"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(e) A person has control of a controllable electronic record if another person, other than the transferor to the person of an interest in the controllable electronic record or a controllable account or controllable payment intangible evidenced by the controllable electronic record:</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber1"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(1)    Has control of the electronic record and acknowledges that it has control on behalf of the person; or</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549StatuteNumber1"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(2)    Obtains control of the electronic record after having acknowledged that it will obtain control of the electronic record on behalf of the person.</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549Statute"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(f) A person that has control under this section is not required to acknowledge that it has control on behalf of another person.</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549Statute"><span xml:space="preserve" class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">(g) If a person acknowledges that it has or will obtain control on behalf of another person, unless the person otherwise agrees or law other than this chapter or chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9" rel="noopener"><span class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont">57A-9</span></a><span xml:space="preserve" class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont"> otherwise provides, the person does not owe any duty to the other person and is not required to confirm the acknowledgement to any other person.</span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549Normal"><span xml:space="preserve" class="s572e8f853b8e4374939ed12944d82549000000"> </span></p><p dir="ltr" class="s572e8f853b8e4374939ed12944d82549NoIndent"><span xml:space="preserve" class="s572e8f853b8e4374939ed12944d82549DefaultParagraphFont-000001">Source: </span><span class="s572e8f853b8e4374939ed12944d82549SCL">SL 2024, ch 198, § 97.</span></p></div></body></html>