<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-526 - Lessor's stoppage of delivery in transit or otherwise. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073354Normal { 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.s2073354SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073354CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073354Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073354DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073354Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } p.s2073354Normal-000002 { 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; } span.s2073354000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073354SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073354SCL-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="s2073354Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-526"><span class="s2073354SENU">57A-2A-526</span></a><span xml:space="preserve" class="s2073354SENU">. </span><span class="s2073354CL">Lessor's stoppage of delivery in transit or otherwise.</span></p><p dir="ltr" class="s2073354Normal-000000"><span class="s2073354DefaultParagraphFont">(1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload or larger shipments of express or freight if the lessee repudiates or fails to make a payment due before delivery, whether for rent, security or otherwise under the lease contract, or for any other reason the lessor has a right to withhold or take possession of the goods.</span></p><p dir="ltr" class="s2073354Normal-000001"><span class="s2073354DefaultParagraphFont">(2) In pursuing its remedies under subsection (1) of this section, the lessor may stop delivery until:</span></p><p dir="ltr" class="s2073354Normal-000002"><span class="s2073354DefaultParagraphFont">(a)    Receipt of the goods by the lessee;</span></p><p dir="ltr" class="s2073354Normal-000002"><span class="s2073354DefaultParagraphFont">(b)    Acknowledgment to the lessee by any bailee of the goods, except a carrier, that the bailee holds the goods for the lessee; or</span></p><p dir="ltr" class="s2073354Normal-000002"><span class="s2073354DefaultParagraphFont">(c)    Such an acknowledgment to the lessee by a carrier via reshipment or as a warehouse.</span></p><p dir="ltr" class="s2073354Normal-000001"><span class="s2073354DefaultParagraphFont">(3)(a) To stop delivery, a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.</span></p><p dir="ltr" class="s2073354Normal-000002"><span class="s2073354DefaultParagraphFont">(b)    After notification, the bailee shall hold and deliver the goods according to the directions of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.</span></p><p dir="ltr" class="s2073354Normal-000002"><span class="s2073354DefaultParagraphFont">(c)    A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.</span></p><p dir="ltr" class="s2073354Normal"><span xml:space="preserve" class="s2073354000003"> </span></p><p dir="ltr" class="s2073354Normal"><span class="s2073354SCL">Source:</span><span xml:space="preserve" class="s2073354SCL-000004"> SL 1989, ch 419, § 1; SL 2009, ch 254, § 820.</span></p></div></body></html>