<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-2-402 - Rights of seller's creditors against sold goods. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073223Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073223SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073223CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073223Normal-000000 { margin-top: 0; margin-bottom: 0; margin-left: 5.00in; text-indent: -4.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; 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font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2073223Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2-402"><span class="s2073223SENU">57A-2-402</span></a><span xml:space="preserve" class="s2073223SENU">. </span><span class="s2073223CL">Rights of seller's creditors against sold goods.</span></p><p dir="ltr" class="s2073223Normal-000000"><span xml:space="preserve" class="s2073223DefaultParagraphFont">(1)    Except as provided in subsections (2) and (3), rights of unsecured creditors of the seller with respect to goods which have been identified to a contract for sale are subject to the buyer's rights to recover the goods under this chapter (§§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2-502"><span class="s2073223DefaultParagraphFont">57A-2-502</span></a><span xml:space="preserve" class="s2073223DefaultParagraphFont"> and </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2-716"><span class="s2073223DefaultParagraphFont">57A-2-716</span></a><span class="s2073223DefaultParagraphFont">).</span></p><p dir="ltr" class="s2073223Normal-000001"><span class="s2073223DefaultParagraphFont">(2)    A creditor of the seller may treat a sale or an identification of goods to a contract for sale as void if as against him a retention of possession by the seller is fraudulent under any rule of law of the state where the goods are situated, except that retention of possession in good faith and current course of trade by a merchant</span><span class="s2073223DefaultParagraphFont-000002">-</span><span class="s2073223DefaultParagraphFont">seller for a commercially reasonable time after a sale or identification is not fraudulent.</span></p><p dir="ltr" class="s2073223Normal-000001"><span class="s2073223DefaultParagraphFont">(3)    Nothing in this chapter shall be deemed to impair the rights of creditors of the seller</span></p><p dir="ltr" class="s2073223Normal-000003"><span xml:space="preserve" class="s2073223DefaultParagraphFont">(a)    Under the provisions of the chapter on secured transactions (chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9"><span class="s2073223DefaultParagraphFont">57A-9</span></a><span class="s2073223DefaultParagraphFont">); or</span></p><p dir="ltr" class="s2073223Normal-000003"><span class="s2073223DefaultParagraphFont">(b)    Where identification to the contract or delivery is made not in current course of trade but in satisfaction of or as security for a preexisting claim for money, security or the like and is made under circumstances which under any rule of law of the state where the goods are situated would apart from this chapter constitute the transaction a fraudulent transfer or voidable preference.</span></p><p dir="ltr" class="s2073223Normal"><span xml:space="preserve" class="s2073223000004"> </span></p><p dir="ltr" class="s2073223Normal"><span class="s2073223SCL">Source:</span><span xml:space="preserve" class="s2073223SCL-000005"> SL 1966, ch 150, § 2-402; SDCL, §§ 57-5-6 to 57-5-8.</span></p></div></body></html>