<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-2A-407 - Irrevocable promises: finance leases. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073328Normal { 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.s2073328SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073328CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073328Normal-000000 { margin-top: 0; margin-bottom: 0; margin-left: 4.50in; text-indent: -4.00in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2073328DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073328Normal-000001 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2073328Normal-000002 { margin-top: 0; margin-bottom: 0; margin-left: 1.14in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2073328000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073328SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073328SCL-000004 { 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></head><body><div><p dir="ltr" class="s2073328Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-407"><span class="s2073328SENU">57A-2A-407</span></a><span xml:space="preserve" class="s2073328SENU">. </span><span class="s2073328CL">Irrevocable promises: finance leases.</span></p><p dir="ltr" class="s2073328Normal-000000"><span class="s2073328DefaultParagraphFont">(1)    In the case of a finance lease that is not a consumer lease the lessee's promises under the lease contract become irrevocable and independent upon the lessee's acceptance of the goods.</span></p><p dir="ltr" class="s2073328Normal-000001"><span class="s2073328DefaultParagraphFont">(2)    A promise that has become irrevocable and independent under subsection (1) of this section:</span></p><p dir="ltr" class="s2073328Normal-000002"><span class="s2073328DefaultParagraphFont">(a)    Is effective and enforceable between the parties, and by or against third parties including assignees of the parties, and</span></p><p dir="ltr" class="s2073328Normal-000002"><span class="s2073328DefaultParagraphFont">(b)    Is not subject to cancellation, termination, modification, repudiation, excuse, or substitution without the consent of the party to whom the promise runs.</span></p><p dir="ltr" class="s2073328Normal-000001"><span class="s2073328DefaultParagraphFont">(3)    This section shall not affect the validity under any other law of a covenant in any lease contract making the lessee's promises irrevocable and independent upon the lessee's acceptance of the goods.</span></p><p dir="ltr" class="s2073328Normal"><span xml:space="preserve" class="s2073328000003"> </span></p><p dir="ltr" class="s2073328Normal"><span class="s2073328SCL">Source:</span><span xml:space="preserve" class="s2073328SCL-000004"> SL 1989, ch 419, § 1; SL 1990, ch 390, § 15.</span></p></div></body></html>