<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 - CONTROLLABLE ELECTRONIC RECORDS</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s0f7f3703677b4b39b437237f58ae5fb0Normal { text-align: center; 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.s0f7f3703677b4b39b437237f58ae5fb0HG4 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s0f7f3703677b4b39b437237f58ae5fb0Normal-000000 { 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.s0f7f3703677b4b39b437237f58ae5fb0000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s0f7f3703677b4b39b437237f58ae5fb0B { margin-left: 1.38in; text-indent: -1.38in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } </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 - CONTROLLABLE ELECTRONIC RECORDS"><meta property="og:description" content="SDLRC Codified Law 57A-12 - CONTROLLABLE ELECTRONIC RECORDS"><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-12"><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="s0f7f3703677b4b39b437237f58ae5fb0Normal"><span xml:space="preserve" class="s0f7f3703677b4b39b437237f58ae5fb0HG4">CHAPTER </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-12" rel="noopener"><span class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">57A-12</span></a></p><p dir="ltr" class="s0f7f3703677b4b39b437237f58ae5fb0Normal"><span class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">CONTROLLABLE ELECTRONIC RECORDS</span></p><p dir="ltr" class="s0f7f3703677b4b39b437237f58ae5fb0Normal-000000"><span xml:space="preserve" class="s0f7f3703677b4b39b437237f58ae5fb0000001"> </span></p><p dir="ltr" class="s0f7f3703677b4b39b437237f58ae5fb0B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-101" rel="noopener"><span class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">57A-12-101</span></a><span xml:space="preserve" class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">    Short title.</span></p><p dir="ltr" class="s0f7f3703677b4b39b437237f58ae5fb0B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-102" rel="noopener"><span class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">57A-12-102</span></a><span xml:space="preserve" class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">    Definitions.</span></p><p dir="ltr" class="s0f7f3703677b4b39b437237f58ae5fb0B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-103" rel="noopener"><span class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">57A-12-103</span></a><span xml:space="preserve" class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">    Relation to chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9" rel="noopener"><span class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">57A-9</span></a><span xml:space="preserve" class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont"> and consumer laws.</span></p><p dir="ltr" class="s0f7f3703677b4b39b437237f58ae5fb0B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-104" rel="noopener"><span class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">57A-12-104</span></a><span xml:space="preserve" class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">    Rights in controllable account, controllable electronic record, and controllable payment intangible.</span></p><p dir="ltr" class="s0f7f3703677b4b39b437237f58ae5fb0B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-105" rel="noopener"><span class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">57A-12-105</span></a><span xml:space="preserve" class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">    Control of controllable electronic record.</span></p><p dir="ltr" class="s0f7f3703677b4b39b437237f58ae5fb0B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-106" rel="noopener"><span class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">57A-12-106</span></a><span xml:space="preserve" class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">    Discharge of account debtor on controllable account or controllable payment intangible.</span></p><p dir="ltr" class="s0f7f3703677b4b39b437237f58ae5fb0B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-107" rel="noopener"><span class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">57A-12-107</span></a><span xml:space="preserve" class="s0f7f3703677b4b39b437237f58ae5fb0DefaultParagraphFont">    Governing law.</span></p></div></body></html><br /><hr><br /><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 - CONTROLLABLE ELECTRONIC RECORDS</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.sfc0f6d4f595f45e09d6719346f7d48daNormal { 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.sfc0f6d4f595f45e09d6719346f7d48daSENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sfc0f6d4f595f45e09d6719346f7d48daCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.sfc0f6d4f595f45e09d6719346f7d48daStatute { 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.sfc0f6d4f595f45e09d6719346f7d48daDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sfc0f6d4f595f45e09d6719346f7d48da000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.sfc0f6d4f595f45e09d6719346f7d48daNoIndent { 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.sfc0f6d4f595f45e09d6719346f7d48daDefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sfc0f6d4f595f45e09d6719346f7d48daSCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 57A-12-101 - Short title."><meta property="og:description" content="SDLRC Codified Law 57A-12-101 - Short title."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-12-101"><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="sfc0f6d4f595f45e09d6719346f7d48daNormal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-101" rel="noopener"><span class="sfc0f6d4f595f45e09d6719346f7d48daSENU">57A-12-101</span></a><span xml:space="preserve" class="sfc0f6d4f595f45e09d6719346f7d48daSENU">. </span><span class="sfc0f6d4f595f45e09d6719346f7d48daCL">Short title.</span></p><p dir="ltr" class="sfc0f6d4f595f45e09d6719346f7d48daStatute"><span class="sfc0f6d4f595f45e09d6719346f7d48daDefaultParagraphFont">This article may be cited as Uniform Commercial Code--Controllable Electronic Records.</span></p><p dir="ltr" class="sfc0f6d4f595f45e09d6719346f7d48daNormal"><span xml:space="preserve" class="sfc0f6d4f595f45e09d6719346f7d48da000000"> </span></p><p dir="ltr" class="sfc0f6d4f595f45e09d6719346f7d48daNoIndent"><span xml:space="preserve" class="sfc0f6d4f595f45e09d6719346f7d48daDefaultParagraphFont-000001">Source: </span><span class="sfc0f6d4f595f45e09d6719346f7d48daSCL">SL 2024, ch 198, § 93.</span></p></div></body></html><br /><hr><br /><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 - CONTROLLABLE ELECTRONIC RECORDS</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2b4663af9dd1441b9414fcca3e39873aNormal { 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.s2b4663af9dd1441b9414fcca3e39873aSENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2b4663af9dd1441b9414fcca3e39873aCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2b4663af9dd1441b9414fcca3e39873aStatute { 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.s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2b4663af9dd1441b9414fcca3e39873aStatuteNumber1 { 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.s2b4663af9dd1441b9414fcca3e39873aStatuteNumber2 { 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; } span.s2b4663af9dd1441b9414fcca3e39873a000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2b4663af9dd1441b9414fcca3e39873aNoIndent { 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.s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2b4663af9dd1441b9414fcca3e39873aSCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 57A-12-102 - Definitions."><meta property="og:description" content="SDLRC Codified Law 57A-12-102 - Definitions."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-12-102"><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="s2b4663af9dd1441b9414fcca3e39873aNormal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-102" rel="noopener"><span class="s2b4663af9dd1441b9414fcca3e39873aSENU">57A-12-102</span></a><span xml:space="preserve" class="s2b4663af9dd1441b9414fcca3e39873aSENU">. </span><span class="s2b4663af9dd1441b9414fcca3e39873aCL">Definitions.</span></p><p dir="ltr" class="s2b4663af9dd1441b9414fcca3e39873aStatute"><span class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">(a) In this chapter:</span></p><p dir="ltr" class="s2b4663af9dd1441b9414fcca3e39873aStatuteNumber1"><span xml:space="preserve" class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">(1)    "Controllable electronic record" means a record stored in an electronic medium that can be subjected to control under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-105" rel="noopener"><span class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">57A-12-105</span></a><span class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">. The term does not include a controllable account, a controllable payment intangible, a deposit account, an electronic copy of a record evidencing chattel paper, an electronic document of title, electronic money, investment property, or a transferable record.</span></p><p dir="ltr" class="s2b4663af9dd1441b9414fcca3e39873aStatuteNumber1"><span class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">(2)    "Qualifying purchaser" means a purchaser of a controllable electronic record or an interest in a controllable electronic record that obtains control of the controllable electronic record for value, in good faith, and without notice of a claim of a property right in the controllable electronic record.</span></p><p dir="ltr" class="s2b4663af9dd1441b9414fcca3e39873aStatuteNumber1"><span class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">(3)    "Transferable record" has the meaning provided for that term in:</span></p><p dir="ltr" class="s2b4663af9dd1441b9414fcca3e39873aStatuteNumber2"><span class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">(A)    Section 201(a)(1) of the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. § 7021(a)(1), as amended and in effect January 1, 2024; or</span></p><p dir="ltr" class="s2b4663af9dd1441b9414fcca3e39873aStatuteNumber2"><span xml:space="preserve" class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">(B)    As defined in § </span><a href="https://sdlegislature.gov/Statutes?Statute=53-12-40" rel="noopener"><span class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">53-12-40</span></a><span class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">.</span></p><p dir="ltr" class="s2b4663af9dd1441b9414fcca3e39873aStatuteNumber1"><span xml:space="preserve" class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">(4)    "Value" has the meaning provided in § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-3-303" rel="noopener"><span class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">57A-3-303</span></a><span class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">(a), as if references in that subsection to an "instrument" were references to a controllable account, controllable electronic record, or controllable payment intangible.</span></p><p dir="ltr" class="s2b4663af9dd1441b9414fcca3e39873aStatute"><span xml:space="preserve" class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">(b) The definitions in chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9" rel="noopener"><span class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">57A-9</span></a><span xml:space="preserve" class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont"> of "account debtor," "controllable account," "controllable payment intangible," "chattel paper," "deposit account," "electronic money," and "investment property" apply to this chapter.</span></p><p dir="ltr" class="s2b4663af9dd1441b9414fcca3e39873aStatute"><span xml:space="preserve" class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">(c) Chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-1" rel="noopener"><span class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont">57A-1</span></a><span xml:space="preserve" class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont"> contains general definitions and principles of construction and interpretation applicable throughout this chapter.</span></p><p dir="ltr" class="s2b4663af9dd1441b9414fcca3e39873aNormal"><span xml:space="preserve" class="s2b4663af9dd1441b9414fcca3e39873a000000"> </span></p><p dir="ltr" class="s2b4663af9dd1441b9414fcca3e39873aNoIndent"><span xml:space="preserve" class="s2b4663af9dd1441b9414fcca3e39873aDefaultParagraphFont-000001">Source: </span><span class="s2b4663af9dd1441b9414fcca3e39873aSCL">SL 2024, ch 198, § 94.</span></p></div></body></html><br /><hr><br /><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 - CONTROLLABLE ELECTRONIC RECORDS</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s69285935965a455e82962a876cdcdb32Normal { 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.s69285935965a455e82962a876cdcdb32SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s69285935965a455e82962a876cdcdb32CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s69285935965a455e82962a876cdcdb32Statute { 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.s69285935965a455e82962a876cdcdb32DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s69285935965a455e82962a876cdcdb32000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s69285935965a455e82962a876cdcdb32NoIndent { 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.s69285935965a455e82962a876cdcdb32DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s69285935965a455e82962a876cdcdb32SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 57A-12-103 - Relation to chapter 57A-9 and consumer laws."><meta property="og:description" content="SDLRC Codified Law 57A-12-103 - Relation to chapter 57A-9 and consumer laws."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-12-103"><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="s69285935965a455e82962a876cdcdb32Normal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-103" rel="noopener"><span class="s69285935965a455e82962a876cdcdb32SENU">57A-12-103</span></a><span xml:space="preserve" class="s69285935965a455e82962a876cdcdb32SENU">. </span><span xml:space="preserve" class="s69285935965a455e82962a876cdcdb32CL">Relation to chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9" rel="noopener"><span class="s69285935965a455e82962a876cdcdb32CL">57A-9</span></a><span xml:space="preserve" class="s69285935965a455e82962a876cdcdb32CL"> and consumer laws.</span></p><p dir="ltr" class="s69285935965a455e82962a876cdcdb32Statute"><span xml:space="preserve" class="s69285935965a455e82962a876cdcdb32DefaultParagraphFont">(a) If there is a conflict between this chapter and chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9" rel="noopener"><span class="s69285935965a455e82962a876cdcdb32DefaultParagraphFont">57A-9</span></a><span xml:space="preserve" class="s69285935965a455e82962a876cdcdb32DefaultParagraphFont">, chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9" rel="noopener"><span class="s69285935965a455e82962a876cdcdb32DefaultParagraphFont">57A-9</span></a><span xml:space="preserve" class="s69285935965a455e82962a876cdcdb32DefaultParagraphFont"> governs.</span></p><p dir="ltr" class="s69285935965a455e82962a876cdcdb32Statute"><span xml:space="preserve" class="s69285935965a455e82962a876cdcdb32DefaultParagraphFont">(b) A transaction subject to this chapter is subject to any applicable rule of law that establishes a different rule for consumers and to (i) title 51A and title 54 and (ii) chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=37-23" rel="noopener"><span class="s69285935965a455e82962a876cdcdb32DefaultParagraphFont">37-23</span></a><span class="s69285935965a455e82962a876cdcdb32DefaultParagraphFont">.</span></p><p dir="ltr" class="s69285935965a455e82962a876cdcdb32Normal"><span xml:space="preserve" class="s69285935965a455e82962a876cdcdb32000000"> </span></p><p dir="ltr" class="s69285935965a455e82962a876cdcdb32NoIndent"><span xml:space="preserve" class="s69285935965a455e82962a876cdcdb32DefaultParagraphFont-000001">Source: </span><span class="s69285935965a455e82962a876cdcdb32SCL">SL 2024, ch 198, § 95.</span></p></div></body></html><br /><hr><br /><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 - CONTROLLABLE ELECTRONIC RECORDS</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s757adb7827a14937bda335f34d3baf1bNormal { 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.s757adb7827a14937bda335f34d3baf1bSENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s757adb7827a14937bda335f34d3baf1bCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s757adb7827a14937bda335f34d3baf1bStatute { 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.s757adb7827a14937bda335f34d3baf1bDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s757adb7827a14937bda335f34d3baf1b000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s757adb7827a14937bda335f34d3baf1bNoIndent { 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.s757adb7827a14937bda335f34d3baf1bDefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s757adb7827a14937bda335f34d3baf1bSCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 57A-12-104 - Rights in controllable account, controllable electronic record, and controllable payment intangible."><meta property="og:description" content="SDLRC Codified Law 57A-12-104 - Rights in controllable account, controllable electronic record, and controllable payment intangible."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-12-104"><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="s757adb7827a14937bda335f34d3baf1bNormal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-104" rel="noopener"><span class="s757adb7827a14937bda335f34d3baf1bSENU">57A-12-104</span></a><span xml:space="preserve" class="s757adb7827a14937bda335f34d3baf1bSENU">. </span><span class="s757adb7827a14937bda335f34d3baf1bCL">Rights in controllable account, controllable electronic record, and controllable payment intangible.</span></p><p dir="ltr" class="s757adb7827a14937bda335f34d3baf1bStatute"><span class="s757adb7827a14937bda335f34d3baf1bDefaultParagraphFont">(a) This section applies to the acquisition and purchase of rights in a controllable account or controllable payment intangible, including the rights and benefits under subsections (c), (d), (e), (g), and (h) of a purchaser and qualifying purchaser, in the same manner this section applies to a controllable electronic record.</span></p><p dir="ltr" class="s757adb7827a14937bda335f34d3baf1bStatute"><span class="s757adb7827a14937bda335f34d3baf1bDefaultParagraphFont">(b) To determine whether a purchaser of a controllable account or a controllable payment intangible is a qualifying purchaser, the purchaser obtains control of the account or payment intangible if it obtains control of the controllable electronic record that evidences the account or payment intangible.</span></p><p dir="ltr" class="s757adb7827a14937bda335f34d3baf1bStatute"><span class="s757adb7827a14937bda335f34d3baf1bDefaultParagraphFont">(c) Except as provided in this section, law other than this chapter determines whether a person acquires a right in a controllable electronic record and the right the person acquires.</span></p><p dir="ltr" class="s757adb7827a14937bda335f34d3baf1bStatute"><span class="s757adb7827a14937bda335f34d3baf1bDefaultParagraphFont">(d) A purchaser of a controllable electronic record acquires all rights in the controllable electronic record that the transferor had or had power to transfer, except that a purchaser of a limited interest in a controllable electronic record acquires rights only to the extent of the interest purchased.</span></p><p dir="ltr" class="s757adb7827a14937bda335f34d3baf1bStatute"><span class="s757adb7827a14937bda335f34d3baf1bDefaultParagraphFont">(e) A qualifying purchaser acquires its rights in the controllable electronic record free of a claim of a property right in the controllable electronic record.</span></p><p dir="ltr" class="s757adb7827a14937bda335f34d3baf1bStatute"><span class="s757adb7827a14937bda335f34d3baf1bDefaultParagraphFont">(f) Except as provided in subsections (a) and (e) for a controllable account and a controllable payment intangible or law other than this chapter, a qualifying purchaser takes a right to payment, right to performance, or other interest in property evidenced by the controllable electronic record subject to a claim of a property right in the right to payment, right to performance, or other interest in property.</span></p><p dir="ltr" class="s757adb7827a14937bda335f34d3baf1bStatute"><span class="s757adb7827a14937bda335f34d3baf1bDefaultParagraphFont">(g) An action may not be asserted against a qualifying purchaser based on both a purchase by the qualifying purchaser of a controllable electronic record and a claim of a property right in another controllable electronic record, whether the action is framed in conversion, replevin, constructive trust, equitable lien, or other theory.</span></p><p dir="ltr" class="s757adb7827a14937bda335f34d3baf1bStatute"><span xml:space="preserve" class="s757adb7827a14937bda335f34d3baf1bDefaultParagraphFont">(h) Filing of a financing statement under chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9" rel="noopener"><span class="s757adb7827a14937bda335f34d3baf1bDefaultParagraphFont">57A-9</span></a><span xml:space="preserve" class="s757adb7827a14937bda335f34d3baf1bDefaultParagraphFont"> is not notice of a claim of a property right in a controllable electronic record.</span></p><p dir="ltr" class="s757adb7827a14937bda335f34d3baf1bNormal"><span xml:space="preserve" class="s757adb7827a14937bda335f34d3baf1b000000"> </span></p><p dir="ltr" class="s757adb7827a14937bda335f34d3baf1bNoIndent"><span xml:space="preserve" class="s757adb7827a14937bda335f34d3baf1bDefaultParagraphFont-000001">Source: </span><span class="s757adb7827a14937bda335f34d3baf1bSCL">SL 2024, ch 198, § 96.</span></p></div></body></html><br /><hr><br /><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 - CONTROLLABLE ELECTRONIC RECORDS</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'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s572e8f853b8e4374939ed12944d82549DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s572e8f853b8e4374939ed12944d82549StatuteNumber1 { 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.s572e8f853b8e4374939ed12944d82549StatuteNumber2 { 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.s572e8f853b8e4374939ed12944d82549StatuteNumber3 { margin-left: 1.75in; 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; } 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; } </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><br /><hr><br /><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 - CONTROLLABLE ELECTRONIC RECORDS</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s72aa9a7597fc4d2cb3e0ec8d33674d0bNormal { 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.s72aa9a7597fc4d2cb3e0ec8d33674d0bSENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s72aa9a7597fc4d2cb3e0ec8d33674d0bCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s72aa9a7597fc4d2cb3e0ec8d33674d0bStatute { 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.s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1 { 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.s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber2 { 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; } span.s72aa9a7597fc4d2cb3e0ec8d33674d0b000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s72aa9a7597fc4d2cb3e0ec8d33674d0bNoIndent { 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.s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s72aa9a7597fc4d2cb3e0ec8d33674d0bSCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 57A-12-106 - Discharge of account debtor on controllable account or controllable payment intangible."><meta property="og:description" content="SDLRC Codified Law 57A-12-106 - Discharge of account debtor on controllable account or controllable payment intangible."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-12-106"><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="s72aa9a7597fc4d2cb3e0ec8d33674d0bNormal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-106" rel="noopener"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bSENU">57A-12-106</span></a><span xml:space="preserve" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bSENU">. </span><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bCL">Discharge of account debtor on controllable account or controllable payment intangible.</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatute"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(a) An account debtor on a controllable account or controllable payment intangible may discharge its obligation by paying:</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(1)    The person having control of the controllable electronic record that evidences the controllable account or controllable payment intangible; or</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(2)    Except as provided in subsection (b), a person that formerly had control of the controllable electronic record.</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatute"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(b) Subject to subsection (d), the account debtor may not discharge its obligation by paying a person that formerly had control of the controllable electronic record if the account debtor receives a notification that:</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(1)    Is signed by a person that formerly had control or the person to which control was transferred;</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(2)    Reasonably identifies the controllable account or controllable payment intangible;</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(3)    Notifies the account debtor that control of the controllable electronic record that evidences the controllable account or controllable payment intangible was transferred;</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(4)    Identifies the transferee, in any reasonable way, including by name, identifying number, cryptographic key, office, or account number; and</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(5)    Provides a commercially reasonable method by which the account debtor is to pay the transferee.</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatute"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(c) After receipt of a notification that complies with subsection (b), the account debtor may discharge its obligation by paying in accordance with the notification and may not discharge the obligation by paying a person that formerly had control.</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatute"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(d) Subject to subsection (h), notification is ineffective under subsection (b):</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(1)    Unless, before the notification is sent, the account debtor and the person that, at that time, had control of the controllable electronic record that evidences the controllable account or controllable payment intangible, agree in a signed record to a commercially reasonable method by which a person may furnish reasonable proof that control has been transferred;</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(2)    To the extent an agreement between the account debtor and seller of a payment intangible limits the account debtor's duty to pay a person other than the seller, and the limitation is effective under law other than this chapter; or</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(3)    At the option of the account debtor, if the notification notifies the account debtor to:</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber2"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(A)    Divide a payment;</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber2"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(B)    Make less than the full amount of an installment or other periodic payment; or</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber2"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(C)    Pay any part of a payment by more than one method or to more than one person.</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatute"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(e) Subject to subsection (h), if requested by the account debtor, the person giving the notification under subsection (b) seasonably shall furnish reasonable proof, using the method in the agreement referred to in subsection (d)(1), that control of the controllable electronic record has been transferred. Unless the person complies with the request, the account debtor may discharge its obligation by paying a person that formerly had control, even if the account debtor has received a notification under subsection (b).</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatute"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(f) A person furnishes reasonable proof under subsection (e) that control has been transferred if the person demonstrates, using the method in the agreement referred to in subsection (d)(1), that the transferee has the power to:</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(1)    Avail itself of substantially all the benefit from the controllable electronic record;</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(2)    Prevent others from availing themselves of substantially all the benefit from the controllable electronic record; and</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatuteNumber1"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(3)    Transfer the powers specified in paragraphs (1) and (2) to another person.</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatute"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(g) Subject to subsection (h), an account debtor may not waive or vary its rights under subsection (d)(1) and (e) or its option under subsection (d)(3).</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bStatute"><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont">(h) This section is subject to law other than this chapter that establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.</span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bNormal"><span xml:space="preserve" class="s72aa9a7597fc4d2cb3e0ec8d33674d0b000000"> </span></p><p dir="ltr" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bNoIndent"><span xml:space="preserve" class="s72aa9a7597fc4d2cb3e0ec8d33674d0bDefaultParagraphFont-000001">Source: </span><span class="s72aa9a7597fc4d2cb3e0ec8d33674d0bSCL">SL 2024, ch 198, § 98.</span></p></div></body></html><br /><hr><br /><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 - CONTROLLABLE ELECTRONIC RECORDS</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s9eb1d5b1e50b483e93dc62430ebb4a94Normal { 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.s9eb1d5b1e50b483e93dc62430ebb4a94SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s9eb1d5b1e50b483e93dc62430ebb4a94CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s9eb1d5b1e50b483e93dc62430ebb4a94Statute { 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.s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s9eb1d5b1e50b483e93dc62430ebb4a94StatuteNumber1 { 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; } span.s9eb1d5b1e50b483e93dc62430ebb4a94000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s9eb1d5b1e50b483e93dc62430ebb4a94NoIndent { 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.s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s9eb1d5b1e50b483e93dc62430ebb4a94SCL { 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-12-107 - Governing law."><meta property="og:description" content="SDLRC Codified Law 57A-12-107 - Governing law."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-12-107"><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="s9eb1d5b1e50b483e93dc62430ebb4a94Normal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-107" rel="noopener"><span class="s9eb1d5b1e50b483e93dc62430ebb4a94SENU">57A-12-107</span></a><span xml:space="preserve" class="s9eb1d5b1e50b483e93dc62430ebb4a94SENU">. </span><span class="s9eb1d5b1e50b483e93dc62430ebb4a94CL">Governing law.</span></p><p dir="ltr" class="s9eb1d5b1e50b483e93dc62430ebb4a94Statute"><span class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont">(a) Except as provided in subsection (b), the local law of a controllable electronic record's jurisdiction governs a matter covered by this chapter.</span></p><p dir="ltr" class="s9eb1d5b1e50b483e93dc62430ebb4a94Statute"><span xml:space="preserve" class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont">(b) For a controllable electronic record that evidences a controllable account or controllable payment intangible, the local law of the controllable electronic record's jurisdiction governs a matter covered by § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-106" rel="noopener"><span class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont">57A-12-106</span></a><span xml:space="preserve" class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont"> unless an effective agreement determines that the local law of another jurisdiction governs.</span></p><p dir="ltr" class="s9eb1d5b1e50b483e93dc62430ebb4a94Statute"><span class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont">(c)     The following rules determine a controllable electronic record's jurisdiction under this section:</span></p><p dir="ltr" class="s9eb1d5b1e50b483e93dc62430ebb4a94StatuteNumber1"><span class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont">(1)    If the controllable electronic record, or a record attached to or logically associated with the controllable electronic record and readily available for review, expressly provides that a particular jurisdiction is the controllable electronic record's jurisdiction for purposes of this chapter or title 57A, that jurisdiction is the controllable electronic record's jurisdiction.</span></p><p dir="ltr" class="s9eb1d5b1e50b483e93dc62430ebb4a94StatuteNumber1"><span class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont">(2)    If paragraph (1) does not apply and the rules of the system in which the controllable electronic record is recorded are readily available for review and expressly provide that a particular jurisdiction is the controllable electronic record's jurisdiction for purposes of this chapter or title 57A, that jurisdiction is the controllable electronic record's jurisdiction.</span></p><p dir="ltr" class="s9eb1d5b1e50b483e93dc62430ebb4a94StatuteNumber1"><span class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont">(3)    If paragraphs (1) and (2) do not apply and the controllable electronic record, or a record attached to or logically associated with the controllable electronic record and readily available for review, expressly provides that the controllable electronic record is governed by the law of a particular jurisdiction, that jurisdiction is the controllable electronic record's jurisdiction.</span></p><p dir="ltr" class="s9eb1d5b1e50b483e93dc62430ebb4a94StatuteNumber1"><span class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont">(4)    If paragraphs (1), (2), and (3) do not apply and the rules of the system in which the controllable electronic record is recorded are readily available for review and expressly provide that the controllable electronic record or the system is governed by the law of a particular jurisdiction, that jurisdiction is the controllable electronic record's jurisdiction.</span></p><p dir="ltr" class="s9eb1d5b1e50b483e93dc62430ebb4a94StatuteNumber1"><span class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont">(5)    If paragraphs (1) through (4) do not apply, the controllable electronic record's jurisdiction is the District of Columbia.</span></p><p dir="ltr" class="s9eb1d5b1e50b483e93dc62430ebb4a94Statute"><span class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont">(d) If subsection (c)(5) applies and Article 12 is not in effect in the District of Columbia without material modification, the governing law for a matter covered by this chapter is the law of the District of Columbia as though Article 12 were in effect in the District of Columbia without material modification. In this subsection, "Article 12" means Article 12 of Uniform Commercial Code Amendments (2022).</span></p><p dir="ltr" class="s9eb1d5b1e50b483e93dc62430ebb4a94Statute"><span class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont">(e) To the extent subsections (a) and (b) provide that the local law of the controllable electronic record's jurisdiction governs a matter covered by this chapter, that law governs even if the matter or a transaction to which the matter relates does not bear any relation to the controllable electronic record's jurisdiction.</span></p><p dir="ltr" class="s9eb1d5b1e50b483e93dc62430ebb4a94Statute"><span xml:space="preserve" class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont">(f) The rights acquired under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-104" rel="noopener"><span class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont">57A-12-104</span></a><span xml:space="preserve" class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont"> by a purchaser or qualifying purchaser are governed by the law applicable under this section at the time of purchase.</span></p><p dir="ltr" class="s9eb1d5b1e50b483e93dc62430ebb4a94Normal"><span xml:space="preserve" class="s9eb1d5b1e50b483e93dc62430ebb4a94000000"> </span></p><p dir="ltr" class="s9eb1d5b1e50b483e93dc62430ebb4a94NoIndent"><span xml:space="preserve" class="s9eb1d5b1e50b483e93dc62430ebb4a94DefaultParagraphFont-000001">Source: </span><span class="s9eb1d5b1e50b483e93dc62430ebb4a94SCL">SL 2024, ch 198, § 99.</span></p></div></body></html>