<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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s390e8db973434239ba0c56db63e9b919Normal { 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.s390e8db973434239ba0c56db63e9b919HG4 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s390e8db973434239ba0c56db63e9b919DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s390e8db973434239ba0c56db63e9b919HG4C { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s390e8db973434239ba0c56db63e9b919Normal-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.s390e8db973434239ba0c56db63e9b919000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s390e8db973434239ba0c56db63e9b919B { 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-8 - INVESTMENT SECURITIES"><meta property="og:description" content="SDLRC Codified Law 57A-8 - INVESTMENT SECURITIES"><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-8"><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="s390e8db973434239ba0c56db63e9b919Normal"><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919HG4">CHAPTER </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8</span></a></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919Normal"><span class="s390e8db973434239ba0c56db63e9b919HG4C">INVESTMENT SECURITIES</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919Normal-000000"><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919000001"> </span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-101" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-101</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Short title.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-102" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-102</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Definitions and index of definitions.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-103" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-103</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Rules for determining whether certain obligations and interests are securities or financial assets.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-104" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-104</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Acquisition of security or financial asset or interest therein.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-105" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-105</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Notice of adverse claim.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-106" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-106</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Control.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-107" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-107</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Whether endorsement, instruction, or entitlement order is effective.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-108" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-108</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Warranties in direct holding.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-109" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-109</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Warranties in indirect holding.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-110" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-110</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Applicability--Choice of law.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-111" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-111</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Clearing corporation rules.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-112" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-112</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Creditor's legal process.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-113" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-113</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Statute of frauds inapplicable.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-114" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-114</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Evidentiary rules concerning certificated securities.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-115" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-115</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Securities intermediary and others not liable to adverse claimant.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-116" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-116</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Securities intermediary as purchaser for value.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-201" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-201</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Issuer.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-202" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-202</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Issuer's responsibility and defenses; notice of defect or defense.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-203" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-203</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Staleness as notice of defect or defense.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-204" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-204</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Effect of issuer's restriction on transfer.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-205" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-205</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Effect of unauthorized signature on security certificate.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-206" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-206</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Completion or alteration of security certificate.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-207" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-207</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Rights and duties of issuer with respect to registered owners.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-208" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-208</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Effect of signature of authenticating trustee, registrar, or transfer agent.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-209" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-209</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Issuer's lien.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-210" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-210</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Overissue.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-301" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-301</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Delivery.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-302" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-302</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Rights of purchaser.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-303" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-303</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Protected purchaser.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-304" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-304</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Indorsement.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-305" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-305</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Instruction.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-306" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-306</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Effect of guaranteeing signature, indorsement, or instruction.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-307" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-307</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Purchaser's right to requisites for registration of transfer.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-308" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-308</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-308" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-308</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont"> to 57A-8-321. Repealed by SL 1998, ch 284, § 1</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-401" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-401</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Duty of issuer to register transfer.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-402" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-402</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Assurance that indorsement or instruction is effective.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-403" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-403</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Demand that issuer not register transfer.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-404" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-404</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Wrongful registration.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-405" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-405</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Replacement of lost, destroyed, or wrongfully taken security certificate.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-406" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-406</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Obligation to notify issuer of lost, destroyed, or wrongfully taken security certificate.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-407" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-407</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Authenticating trustee, transfer agent, and registrar.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-408" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-408</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-408" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-408</span></a><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">. Repealed by SL 1998, ch 284, § 1</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-501" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-501</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Securities account; acquisition of security entitlement from securities intermediary.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-502" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-502</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Assertion of adverse claim against entitlement holder.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-503" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-503</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Property interest of entitlement holder in financial asset held by securities intermediary.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-504" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-504</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Duty of securities intermediary to maintain financial asset.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-505" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-505</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Duty of securities intermediary with respect to payments and distributions.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-506" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-506</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Duty of securities intermediary to exercise rights as directed by entitlement holder.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-507" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-507</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Duty of securities intermediary to comply with entitlement order.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-508" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-508</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Duty of securities intermediary to change entitlement holder's position to other form of security holding.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-509" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-509</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Specification of duties of securities intermediary by other statute or regulation; Manner of performance of duties of securities intermediary and exercise of rights of entitlement holder.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-510" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-510</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Rights of purchaser of security entitlement from entitlement holder.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-511" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-511</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Priority among security interests and entitlement holders.</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-601" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-601</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-601" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-601</span></a><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">, 57A-8-602. Reserved</span></p><p dir="ltr" class="s390e8db973434239ba0c56db63e9b919B"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-603" rel="noopener"><span class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">57A-8-603</span></a><span xml:space="preserve" class="s390e8db973434239ba0c56db63e9b919DefaultParagraphFont">    Savings clause.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073587Normal { 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.s2073587SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073587CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073587Normal-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.s2073587DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073587000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073587SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073587SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073587Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-101"><span class="s2073587SENU">57A-8-101</span></a><span xml:space="preserve" class="s2073587SENU">. </span><span class="s2073587CL">Short title.</span></p><p dir="ltr" class="s2073587Normal-000000"><span class="s2073587DefaultParagraphFont">This chapter may be cited as Uniform Commercial Code--Investment Securities.</span></p><p dir="ltr" class="s2073587Normal"><span xml:space="preserve" class="s2073587000001"> </span></p><p dir="ltr" class="s2073587Normal"><span class="s2073587SCL">Source:</span><span xml:space="preserve" class="s2073587SCL-000002"> SL 1998, ch 284, § 1.</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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s47733df309b4450a92ad5424f9008060Normal { 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.s47733df309b4450a92ad5424f9008060SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s47733df309b4450a92ad5424f9008060CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s47733df309b4450a92ad5424f9008060Statute { 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.s47733df309b4450a92ad5424f9008060DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s47733df309b4450a92ad5424f9008060StatuteNumber1 { 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.s47733df309b4450a92ad5424f9008060StatuteNumber2 { 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.s47733df309b4450a92ad5424f9008060StatuteNumber1-000000 { margin-left: 0.75in; text-indent: 0.00in; 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.s47733df309b4450a92ad5424f9008060StatuteNumber3 { 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.s47733df309b4450a92ad5424f9008060000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s47733df309b4450a92ad5424f9008060NoIndent { 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.s47733df309b4450a92ad5424f9008060DefaultParagraphFont-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s47733df309b4450a92ad5424f9008060SCL { 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-8-102 - Definitions and index of definitions."><meta property="og:description" content="SDLRC Codified Law 57A-8-102 - Definitions and index of definitions."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-8-102"><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="s47733df309b4450a92ad5424f9008060Normal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-102" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060SENU">57A-8-102</span></a><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060SENU">. </span><span class="s47733df309b4450a92ad5424f9008060CL">Definitions and index of definitions.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060Statute"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(a) In this chapter:</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(1)    "Adverse claim" means a claim that a claimant has a property interest in a financial asset and that it is a violation of the rights of the claimant for another person to hold, transfer, or deal with the financial asset.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(2)    "Bearer form," as applied to a certificated security, means a form in which the security is payable to the bearer of the security certificate according to its terms but not by reason of an indorsement.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(3)    "Broker" means a person defined as a broker or dealer under the federal securities laws, but without excluding a bank acting in that capacity.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(4)    "Certificated security" means a security that is represented by a certificate.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(5)    "Clearing corporation" means:</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(i)    A person that is registered as a "clearing agency" under the federal securities laws;</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(ii)    A federal reserve bank; or</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(iii)    Any other person that provides clearance or settlement services with respect to financial assets that would require it to register as a clearing agency under the federal securities laws but for an exclusion or exemption from the registration requirement, if its activities as a clearing corporation, including promulgation of rules, are subject to regulation by a federal or state governmental authority.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(6)    "Communicate" means to:</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(i)    Send a signed record; or</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(ii)    Transmit information by any mechanism agreed upon by the persons transmitting and receiving the information.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(7)    "Entitlement holder" means a person identified in the records of a securities intermediary as the person having a security entitlement against the securities intermediary. If a person acquires a security entitlement by virtue of § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-501" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-8-501</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(b)(2) or (3), that person is the entitlement holder.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(8)    "Entitlement order" means a notification communicated to a securities intermediary directing transfer or redemption of a financial asset to which the entitlement holder has a security entitlement.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(9)    "Financial asset," except as otherwise provided in § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-103" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-8-103</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">, means:</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(i)    A security;</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(ii)    An obligation of a person or a share, participation, or other interest in a person or in property or an enterprise of a person, which is, or is of a type, dealt in or traded on financial markets, or which is recognized in any area in which it is issued or dealt in as a medium for investment; or</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(iii)    Any property that is held by a securities intermediary for another person in a securities account if the securities intermediary has expressly agreed with the other person that the property is to be treated as a financial asset under this chapter.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1-000000"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">As context requires, the term means either the interest itself or the means by which a person's claim to it is evidenced, including a certificated or uncertificated security, a security certificate, or a security entitlement.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(10)    (Reserved.)</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(11)    "Indorsement" means a signature that alone or accompanied by other words is made on a security certificate in registered form or on a separate document for the purpose of assigning, transferring, or redeeming the security or granting a power to assign, transfer, or redeem it.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(12)    "Instruction" means a notification communicated to the issuer of an uncertificated security which directs that the transfer of the security be registered or that the security be redeemed.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(13)    "Registered form," as applied to a certificated security, means a form in which:</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(i)    The security certificate specifies a person entitled to the security; and</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(ii)    A transfer of the security may be registered upon books maintained for that purpose by or on behalf of the issuer, or the security certificate so states.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(14)    "Securities intermediary" means:</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(i)    A clearing corporation; or</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(ii)    A person, including a bank or broker, that in the ordinary course of its business maintains securities accounts for others and is acting in that capacity.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(15)    "Security," except as otherwise provided in § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-103" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-8-103</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">, means an obligation of an issuer or a share, participation, or other interest in an issuer or in property or an enterprise of an issuer:</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(i)    Which is represented by a security certificate in bearer or registered form, or the transfer of which may be registered upon books maintained for that purpose by or on behalf of the issuer;</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(ii)    Which is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations; and</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber2"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(iii)    Which:</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber3"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(A)    Is, or is of a type, dealt in or traded on securities exchanges or securities markets; or</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber3"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(B)    Is a medium for investment and by its terms expressly provides that it is a security governed by this chapter.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(16)    "Security certificate" means a certificate representing a security.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(17)    "Security entitlement" means the rights and property interest of an entitlement holder with respect to a financial asset specified in Part 5.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(18)    "Uncertificated security" means a security that is not represented by a certificate.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060Statute"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(b) The following definitions in this chapter and other chapters apply to this chapter:</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">Appropriate person, § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-107" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-8-107</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">Control, § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-106" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-8-106</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">Controllable account, § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-102" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-9-102</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">Controllable electronic record, § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-102" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-12-102</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">Controllable payment intangible, § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-102" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-9-102</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">Delivery, § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-301" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-8-301</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">Investment company security, § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-103" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-8-103</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">Issuer, § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-201" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-8-201</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">Overissue, § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-210" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-8-210</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">Protected purchaser, § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-303" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-8-303</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060StatuteNumber1"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">Securities account, § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-501" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-8-501</span></a><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060Statute"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(c) In addition, chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-1" rel="noopener"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">57A-1</span></a><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont"> contains general definitions and principles of construction and interpretation applicable throughout this chapter.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060Statute"><span class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont">(d) The characterization of a person, business, or transaction for purposes of this chapter does not determine the characterization of the person, business, or transaction for purposes of any other law, regulation, or rule.</span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060Normal"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060000001"> </span></p><p dir="ltr" class="s47733df309b4450a92ad5424f9008060NoIndent"><span xml:space="preserve" class="s47733df309b4450a92ad5424f9008060DefaultParagraphFont-000002">Source: </span><span class="s47733df309b4450a92ad5424f9008060SCL">SL 1998, ch 284, § 1; SL 2008, ch 259, § 41; SL 2024, ch 198, § 38.</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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s06ff0456c7e1441fa6956f621656b915Normal { 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.s06ff0456c7e1441fa6956f621656b915SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s06ff0456c7e1441fa6956f621656b915CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s06ff0456c7e1441fa6956f621656b915Statute { 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.s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s06ff0456c7e1441fa6956f621656b915000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s06ff0456c7e1441fa6956f621656b915NoIndent { 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.s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s06ff0456c7e1441fa6956f621656b915SCL { 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-8-103 - Rules for determining whether certain obligations and interests are securities or financial assets."><meta property="og:description" content="SDLRC Codified Law 57A-8-103 - Rules for determining whether certain obligations and interests are securities or financial assets."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-8-103"><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="s06ff0456c7e1441fa6956f621656b915Normal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-103" rel="noopener"><span class="s06ff0456c7e1441fa6956f621656b915SENU">57A-8-103</span></a><span xml:space="preserve" class="s06ff0456c7e1441fa6956f621656b915SENU">. </span><span class="s06ff0456c7e1441fa6956f621656b915CL">Rules for determining whether certain obligations and interests are securities or financial assets.</span></p><p dir="ltr" class="s06ff0456c7e1441fa6956f621656b915Statute"><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">In this chapter:</span></p><p dir="ltr" class="s06ff0456c7e1441fa6956f621656b915Statute"><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">(a) A share or similar equity interest issued by a corporation, business trust, joint stock company, or similar entity is a security.</span></p><p dir="ltr" class="s06ff0456c7e1441fa6956f621656b915Statute"><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">(b) An "investment company security" is a security. "Investment company security" means a share or similar equity interest issued by an entity that is registered as an investment company under the federal investment company laws, an interest in a unit investment trust that is so registered, or a face-amount certificate issued by a face-amount certificate company that is so registered. Investment company security does not include an insurance policy or endowment policy or annuity contract issued by an insurance company.</span></p><p dir="ltr" class="s06ff0456c7e1441fa6956f621656b915Statute"><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">(c) An interest in a partnership or limited liability company is not a security unless it is dealt in or traded on securities exchanges or in securities markets, its terms expressly provide that it is a security governed by this chapter, or it is an investment company security. However, an interest in a partnership or limited liability company is a financial asset if it is held in a securities account.</span></p><p dir="ltr" class="s06ff0456c7e1441fa6956f621656b915Statute"><span xml:space="preserve" class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">(d) A writing that is a security certificate is governed by this chapter and not by chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-3" rel="noopener"><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">57A-3</span></a><span xml:space="preserve" class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">, even though it also meets the requirements of that chapter. However, a negotiable instrument governed by chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-3" rel="noopener"><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">57A-3</span></a><span xml:space="preserve" class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont"> is a financial asset if it is held in a securities account.</span></p><p dir="ltr" class="s06ff0456c7e1441fa6956f621656b915Statute"><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">(e) An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.</span></p><p dir="ltr" class="s06ff0456c7e1441fa6956f621656b915Statute"><span xml:space="preserve" class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">(f) A commodity contract, as defined in § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-102" rel="noopener"><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">57A-9-102</span></a><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">(a)(15), is not a security or a financial asset;</span></p><p dir="ltr" class="s06ff0456c7e1441fa6956f621656b915Statute"><span xml:space="preserve" class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">(g) A document of title, as defined in subdivision </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-1-201" rel="noopener"><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">57A-1-201</span></a><span xml:space="preserve" class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">(16), is not a financial asset unless § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-102" rel="noopener"><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">57A-8-102</span></a><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">(a)(9)(iii) applies.</span></p><p dir="ltr" class="s06ff0456c7e1441fa6956f621656b915Statute"><span xml:space="preserve" class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">(h) A controllable account, controllable electronic record, or controllable payment intangible is not a financial asset unless § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-102" rel="noopener"><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">57A-8-102</span></a><span class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont">(a)(9)(iii) applies.</span></p><p dir="ltr" class="s06ff0456c7e1441fa6956f621656b915Normal"><span xml:space="preserve" class="s06ff0456c7e1441fa6956f621656b915000000"> </span></p><p dir="ltr" class="s06ff0456c7e1441fa6956f621656b915NoIndent"><span xml:space="preserve" class="s06ff0456c7e1441fa6956f621656b915DefaultParagraphFont-000001">Source: </span><span class="s06ff0456c7e1441fa6956f621656b915SCL">SL 1998, ch 284, § 1; SL 2000, ch 231, § 14; SL 2009, ch 254, § 823; SL 2024, ch 198, § 39.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073590Normal { 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.s2073590SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073590CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073590Normal-000000 { margin-top: 0; margin-bottom: 0; margin-left: 6.00in; text-indent: -5.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2073590DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073590Normal-000001 { 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; } p.s2073590Normal-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.s2073590000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073590SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073590SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073590Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-104"><span class="s2073590SENU">57A-8-104</span></a><span xml:space="preserve" class="s2073590SENU">. </span><span class="s2073590CL">Acquisition of security or financial asset or interest therein.</span></p><p dir="ltr" class="s2073590Normal-000000"><span class="s2073590DefaultParagraphFont">(a)    A person acquires a security or an interest therein, under this chapter, if:</span></p><p dir="ltr" class="s2073590Normal-000001"><span xml:space="preserve" class="s2073590DefaultParagraphFont">(1)    The person is a purchaser to whom a security is delivered pursuant to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-301"><span class="s2073590DefaultParagraphFont">57A-8-301</span></a><span class="s2073590DefaultParagraphFont">; or</span></p><p dir="ltr" class="s2073590Normal-000001"><span xml:space="preserve" class="s2073590DefaultParagraphFont">(2)    The person acquires a security entitlement to the security pursuant to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-501"><span class="s2073590DefaultParagraphFont">57A-8-501</span></a><span class="s2073590DefaultParagraphFont">.</span></p><p dir="ltr" class="s2073590Normal-000002"><span class="s2073590DefaultParagraphFont">(b)    A person acquires a financial asset, other than a security, or an interest therein, under this chapter, if the person acquires a security entitlement to the financial asset.</span></p><p dir="ltr" class="s2073590Normal-000002"><span xml:space="preserve" class="s2073590DefaultParagraphFont">(c)    A person who acquires a security entitlement to a security or other financial asset has the rights specified in Part 5, but is a purchaser of any security, security entitlement, or other financial asset held by the securities intermediary only to the extent provided in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-503"><span class="s2073590DefaultParagraphFont">57A-8-503</span></a><span class="s2073590DefaultParagraphFont">.</span></p><p dir="ltr" class="s2073590Normal-000002"><span class="s2073590DefaultParagraphFont">(d)    Unless the context shows that a different meaning is intended, a person who is required by other law, regulation, rule, or agreement to transfer, deliver, present, surrender, exchange, or otherwise put in the possession of another person a security or financial asset satisfies that requirement by causing the other person to acquire an interest in the security or financial asset pursuant to subsection (a) or (b).</span></p><p dir="ltr" class="s2073590Normal"><span xml:space="preserve" class="s2073590000003"> </span></p><p dir="ltr" class="s2073590Normal"><span class="s2073590SCL">Source:</span><span xml:space="preserve" class="s2073590SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073591Normal { 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.s2073591SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073591CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073591Normal-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.s2073591DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073591Normal-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.s2073591Normal-000002 { 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; } span.s2073591000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073591SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073591SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073591Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-105"><span class="s2073591SENU">57A-8-105</span></a><span xml:space="preserve" class="s2073591SENU">. </span><span class="s2073591CL">Notice of adverse claim.</span></p><p dir="ltr" class="s2073591Normal-000000"><span class="s2073591DefaultParagraphFont">(a) A person has notice of an adverse claim if:</span></p><p dir="ltr" class="s2073591Normal-000001"><span class="s2073591DefaultParagraphFont">(1)    The person knows of the adverse claim;</span></p><p dir="ltr" class="s2073591Normal-000001"><span class="s2073591DefaultParagraphFont">(2)    The person is aware of facts sufficient to indicate that there is a significant probability that the adverse claim exists and deliberately avoids information that would establish the existence of the adverse claim; or</span></p><p dir="ltr" class="s2073591Normal-000001"><span class="s2073591DefaultParagraphFont">(3)    The person has a duty, imposed by statute or regulation, to investigate whether an adverse claim exists, and the investigation so required would establish the existence of the adverse claim.</span></p><p dir="ltr" class="s2073591Normal-000002"><span class="s2073591DefaultParagraphFont">(b) Having knowledge that a financial asset or interest therein is or has been transferred by a representative imposes no duty of inquiry into the rightfulness of a transaction and is not notice of an adverse claim. However, a person who knows that a representative has transferred a financial asset or interest therein in a transaction that is, or whose proceeds are being used, for the individual benefit of the representative or otherwise in breach of duty has notice of an adverse claim.</span></p><p dir="ltr" class="s2073591Normal-000002"><span class="s2073591DefaultParagraphFont">(c) An act or event that creates a right to immediate performance of the principal obligation represented by a security certificate or sets a date on or after which the certificate is to be presented or surrendered for redemption or exchange does not itself constitute notice of an adverse claim except in the case of a transfer more than:</span></p><p dir="ltr" class="s2073591Normal-000001"><span class="s2073591DefaultParagraphFont">(1)    One year after a date set for presentment or surrender for redemption or exchange; or</span></p><p dir="ltr" class="s2073591Normal-000001"><span class="s2073591DefaultParagraphFont">(2)    Six months after a date set for payment of money against presentation or surrender of the certificate, if money was available for payment on that date.</span></p><p dir="ltr" class="s2073591Normal-000002"><span class="s2073591DefaultParagraphFont">(d) A purchaser of a certificated security has notice of an adverse claim if the security certificate:</span></p><p dir="ltr" class="s2073591Normal-000001"><span class="s2073591DefaultParagraphFont">(1)    Whether in bearer or registered form, has been indorsed "for collection" or "for surrender" or for some other purpose not involving transfer; or</span></p><p dir="ltr" class="s2073591Normal-000001"><span class="s2073591DefaultParagraphFont">(2)    Is in bearer form and has on it an unambiguous statement that it is the property of a person other than the transferor, but the mere writing of a name on the certificate is not such a statement.</span></p><p dir="ltr" class="s2073591Normal-000002"><span xml:space="preserve" class="s2073591DefaultParagraphFont">(e) Filing of a financing statement under chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9"><span class="s2073591DefaultParagraphFont">57A-9</span></a><span xml:space="preserve" class="s2073591DefaultParagraphFont"> is not notice of an adverse claim to a financial asset.</span></p><p dir="ltr" class="s2073591Normal"><span xml:space="preserve" class="s2073591000003"> </span></p><p dir="ltr" class="s2073591Normal"><span class="s2073591SCL">Source:</span><span xml:space="preserve" class="s2073591SCL-000004"> SL 1998, ch 284, § 1.</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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s30f94febfeb34b4ca7323ded5f6e8c8bNormal { 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.s30f94febfeb34b4ca7323ded5f6e8c8bSENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s30f94febfeb34b4ca7323ded5f6e8c8bCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s30f94febfeb34b4ca7323ded5f6e8c8bStatute { 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.s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s30f94febfeb34b4ca7323ded5f6e8c8bStatuteNumber1 { 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.s30f94febfeb34b4ca7323ded5f6e8c8bStatuteNumber2 { 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.s30f94febfeb34b4ca7323ded5f6e8c8b000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s30f94febfeb34b4ca7323ded5f6e8c8bNoIndent { 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.s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s30f94febfeb34b4ca7323ded5f6e8c8bSCL { 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-8-106 - Control."><meta property="og:description" content="SDLRC Codified Law 57A-8-106 - Control."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-8-106"><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="s30f94febfeb34b4ca7323ded5f6e8c8bNormal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-106" rel="noopener"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bSENU">57A-8-106</span></a><span xml:space="preserve" class="s30f94febfeb34b4ca7323ded5f6e8c8bSENU">. </span><span class="s30f94febfeb34b4ca7323ded5f6e8c8bCL">Control.</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatute"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(a) A purchaser has "control" of a certificated security in bearer form if the certificated security is delivered to the purchaser.</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatute"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(b) A purchaser has "control" of a certificated security in registered form if the certificated security is delivered to the purchaser, and:</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatuteNumber1"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(1)    The certificate is indorsed to the purchaser or in blank by an effective indorsement; or</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatuteNumber1"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(2)    The certificate is registered in the name of the purchaser, upon original issue or registration of transfer by the issuer.</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatute"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(c) A purchaser has "control" of an uncertificated security if:</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatuteNumber1"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(1)    The uncertificated security is delivered to the purchaser; or</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatuteNumber1"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(2)    The issuer has agreed that it will comply with instructions originated by the purchaser without further consent by the registered owner.</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatute"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(d) A purchaser has "control" of a security entitlement if:</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatuteNumber1"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(1)    The purchaser becomes the entitlement holder; or</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatuteNumber1"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(2)    The securities intermediary has agreed that it will comply with entitlement orders originated by the purchaser without further consent by the entitlement holder; or</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatuteNumber1"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(3)    Another person, other than the transferor to the purchaser of an interest in the security entitlement:</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatuteNumber2"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(A)    Has control of the security entitlement and acknowledges that it has control on behalf of the purchaser; or</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatuteNumber2"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(B)    Obtains control of the security entitlement after having acknowledged that it will obtain control of the security entitlement on behalf of the purchaser.</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatute"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(e) If an interest in a security entitlement is granted by the entitlement holder to the entitlement holder's own securities intermediary, the securities intermediary has control.</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatute"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(f) A purchaser who has satisfied the requirements of subsection (c) or (d) has control, even if the registered owner in the case of subsection (c) or the entitlement holder in the case of subsection (d) retains the right to make substitutions for the uncertificated security or security entitlement, to originate instructions or entitlement orders to the issuer or securities intermediary, or otherwise to deal with the uncertificated security or security entitlement.</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatute"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(g) An issuer or a securities intermediary may not enter into an agreement of the kind described in subsection (c)(2) or (d)(2) without the consent of the registered owner or entitlement holder, but an issuer or a securities intermediary is not required to enter into such an agreement even though the registered owner or entitlement holder so directs. An issuer or securities intermediary that has entered into such an agreement is not required to confirm the existence of the agreement to another party unless requested to do so by the registered owner or entitlement holder.</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatute"><span class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(h) A person that has control under this section is not required to acknowledge that it has control on behalf of a purchaser.</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bStatute"><span xml:space="preserve" class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">(i) If a person acknowledges that it has or will obtain control on behalf of a purchaser, 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="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont">57A-9</span></a><span xml:space="preserve" class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont"> otherwise provides, the person does not owe any duty to the purchaser and is not required to confirm the acknowledgement to any other person.</span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bNormal"><span xml:space="preserve" class="s30f94febfeb34b4ca7323ded5f6e8c8b000000"> </span></p><p dir="ltr" class="s30f94febfeb34b4ca7323ded5f6e8c8bNoIndent"><span xml:space="preserve" class="s30f94febfeb34b4ca7323ded5f6e8c8bDefaultParagraphFont-000001">Source: </span><span class="s30f94febfeb34b4ca7323ded5f6e8c8bSCL">SL 1998, ch 284, § 1; SL 2000, ch 231, § 15; SL 2024, ch 198, § 40.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073593Normal { 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.s2073593SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073593CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073593Normal-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.s2073593DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073593Normal-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.s2073593Normal-000002 { 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; } span.s2073593000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073593SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073593SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073593Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-107"><span class="s2073593SENU">57A-8-107</span></a><span xml:space="preserve" class="s2073593SENU">. </span><span class="s2073593CL">Whether endorsement, instruction, or entitlement order is effective.</span></p><p dir="ltr" class="s2073593Normal-000000"><span class="s2073593DefaultParagraphFont">(a) "Appropriate person" means:</span></p><p dir="ltr" class="s2073593Normal-000001"><span class="s2073593DefaultParagraphFont">(1)    With respect to an indorsement, the person specified by a security certificate or by an effective special indorsement to be entitled to the security;</span></p><p dir="ltr" class="s2073593Normal-000001"><span class="s2073593DefaultParagraphFont">(2)    With respect to an instruction, the registered owner of an uncertificated security;</span></p><p dir="ltr" class="s2073593Normal-000001"><span class="s2073593DefaultParagraphFont">(3)    With respect to an entitlement order, the entitlement holder;</span></p><p dir="ltr" class="s2073593Normal-000001"><span class="s2073593DefaultParagraphFont">(4)    If the person designated in paragraph (1), (2), or (3) is deceased, the designated person's successor taking under other law or the designated person's personal representative acting for the estate of the decedent; or</span></p><p dir="ltr" class="s2073593Normal-000001"><span class="s2073593DefaultParagraphFont">(5)    If the person designated in paragraph (1), (2), or (3) lacks capacity, the designated person's guardian, conservator, or other similar representative who has power under other law to transfer the security or financial asset.</span></p><p dir="ltr" class="s2073593Normal-000002"><span class="s2073593DefaultParagraphFont">(b) An indorsement, instruction, or entitlement order is effective if:</span></p><p dir="ltr" class="s2073593Normal-000001"><span class="s2073593DefaultParagraphFont">(1)    It is made by the appropriate person;</span></p><p dir="ltr" class="s2073593Normal-000001"><span class="s2073593DefaultParagraphFont">(2)    It is made by a person who has power under the law of agency to transfer the security or financial asset on behalf of the appropriate person, including, in the case of an instruction or entitlement order, a person who has control under § 57A-8-106(c)(2) or (d)(2); or</span></p><p dir="ltr" class="s2073593Normal-000001"><span class="s2073593DefaultParagraphFont">(3)    The appropriate person has ratified it or is otherwise precluded from asserting its ineffectiveness.</span></p><p dir="ltr" class="s2073593Normal-000002"><span class="s2073593DefaultParagraphFont">(c) An indorsement, instruction, or entitlement order made by a representative is effective even if:</span></p><p dir="ltr" class="s2073593Normal-000001"><span class="s2073593DefaultParagraphFont">(1)    The representative has failed to comply with a controlling instrument or with the law of the state having jurisdiction of the representative relationship, including any law requiring the representative to obtain court approval of the transaction; or</span></p><p dir="ltr" class="s2073593Normal-000001"><span class="s2073593DefaultParagraphFont">(2)    The representative's action in making the indorsement, instruction, or entitlement order or using the proceeds of the transaction is otherwise a breach of duty.</span></p><p dir="ltr" class="s2073593Normal-000002"><span class="s2073593DefaultParagraphFont">(d) If a security is registered in the name of or specially indorsed to a person described as a representative, or if a securities account is maintained in the name of a person described as a representative, an indorsement, instruction, or entitlement order made by the person is effective even though the person is no longer serving in the described capacity.</span></p><p dir="ltr" class="s2073593Normal-000002"><span class="s2073593DefaultParagraphFont">(e) Effectiveness of an indorsement, instruction, or entitlement order is determined as of the date the indorsement, instruction, or entitlement order is made, and an indorsement, instruction, or entitlement order does not become ineffective by reason of any later change of circumstances.</span></p><p dir="ltr" class="s2073593Normal"><span xml:space="preserve" class="s2073593000003"> </span></p><p dir="ltr" class="s2073593Normal"><span class="s2073593SCL">Source:</span><span xml:space="preserve" class="s2073593SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073594Normal { 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.s2073594SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073594CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073594Normal-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.s2073594DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073594Normal-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.s2073594Normal-000002 { 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.s2073594Normal-000003 { 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.s2073594000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073594SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073594SCL-000005 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073594Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-108"><span class="s2073594SENU">57A-8-108</span></a><span xml:space="preserve" class="s2073594SENU">. </span><span class="s2073594CL">Warranties in direct holding.</span></p><p dir="ltr" class="s2073594Normal-000000"><span class="s2073594DefaultParagraphFont">(a) A person who transfers a certificated security to a purchaser for value warrants to the purchaser, and an indorser, if the transfer is by indorsement, warrants to any subsequent purchaser, that:</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(1)    The certificate is genuine and has not been materially altered;</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(2)    The transferor or indorser does not know of any fact that might impair the validity of the security;</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(3)    There is no adverse claim to the security;</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(4)    The transfer does not violate any restriction on transfer;</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(5)    If the transfer is by indorsement, the indorsement is made by an appropriate person, or if the indorsement is by an agent, the agent has actual authority to act on behalf of the appropriate person; and</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(6)    The transfer is otherwise effective and rightful.</span></p><p dir="ltr" class="s2073594Normal-000002"><span class="s2073594DefaultParagraphFont">(b) A person who originates an instruction for registration of transfer of an uncertificated security to a purchaser for value warrants to the purchaser that:</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(1)    The instruction is made by an appropriate person, or if the instruction is by an agent, the agent has actual authority to act on behalf of the appropriate person;</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(2)    The security is valid;</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(3)    There is no adverse claim to the security; and</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(4)    At the time the instruction is presented to the issuer:</span></p><p dir="ltr" class="s2073594Normal-000003"><span class="s2073594DefaultParagraphFont">(i)    The purchaser will be entitled to the registration of transfer;</span></p><p dir="ltr" class="s2073594Normal-000003"><span class="s2073594DefaultParagraphFont">(ii)    The transfer will be registered by the issuer free from all liens, security interests, restrictions, and claims other than those specified in the instruction;</span></p><p dir="ltr" class="s2073594Normal-000003"><span class="s2073594DefaultParagraphFont">(iii)    The transfer will not violate any restriction on transfer; and</span></p><p dir="ltr" class="s2073594Normal-000003"><span class="s2073594DefaultParagraphFont">(iv)    The requested transfer will otherwise be effective and rightful.</span></p><p dir="ltr" class="s2073594Normal-000002"><span class="s2073594DefaultParagraphFont">(c) A person who transfers an uncertificated security to a purchaser for value and does not originate an instruction in connection with the transfer warrants that:</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(1)    The uncertificated security is valid;</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(2)    There is no adverse claim to the security;</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(3)    The transfer does not violate any restriction on transfer; and</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(4)    The transfer is otherwise effective and rightful.</span></p><p dir="ltr" class="s2073594Normal-000002"><span class="s2073594DefaultParagraphFont">(d) A person who indorses a security certificate warrants to the issuer that:</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(1)    There is no adverse claim to the security; and</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(2)    The indorsement is effective.</span></p><p dir="ltr" class="s2073594Normal-000002"><span class="s2073594DefaultParagraphFont">(e) A person who originates an instruction for registration of transfer of an uncertificated security warrants to the issuer that:</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(1)    The instruction is effective; and</span></p><p dir="ltr" class="s2073594Normal-000001"><span class="s2073594DefaultParagraphFont">(2)    At the time the instruction is presented to the issuer the purchaser will be entitled to the registration of transfer.</span></p><p dir="ltr" class="s2073594Normal-000002"><span class="s2073594DefaultParagraphFont">(f) A person who presents a certificated security for registration of transfer or for payment or exchange warrants to the issuer that the person is entitled to the registration, payment, or exchange, but a purchaser for value and without notice of adverse claims to whom transfer is registered warrants only that the person has no knowledge of any unauthorized signature in a necessary indorsement.</span></p><p dir="ltr" class="s2073594Normal-000002"><span class="s2073594DefaultParagraphFont">(g) If a person acts as agent of another in delivering a certificated security to a purchaser, the identity of the principal was known to the person to whom the certificate was delivered, and the certificate delivered by the agent was received by the agent from the principal or received by the agent from another person at the direction of the principal, the person delivering the security certificate warrants only that the delivering person has authority to act for the principal and does not know of any adverse claim to the certificated security.</span></p><p dir="ltr" class="s2073594Normal-000002"><span xml:space="preserve" class="s2073594000004"> </span></p></div><div><p dir="ltr" class="s2073594Normal-000002"><span class="s2073594DefaultParagraphFont">(h) A secured party who redelivers a security certificate received, or after payment and on order of the debtor delivers the security certificate to another person, makes only the warranties of an agent under subsection (g).</span></p><p dir="ltr" class="s2073594Normal-000002"><span class="s2073594DefaultParagraphFont">(i) Except as otherwise provided in subsection (g), a broker acting for a customer makes to the issuer and a purchaser the warranties provided in subsections (a) through (f). A broker that delivers a security certificate to its customer, or causes its customer to be registered as the owner of an uncertificated security, makes to the customer the warranties provided in subsection (a) or (b), and has the rights and privileges of a purchaser under this section. The warranties of and in favor of the broker acting as an agent are in addition to applicable warranties given by and in favor of the customer.</span></p><p dir="ltr" class="s2073594Normal"><span xml:space="preserve" class="s2073594000004"> </span></p><p dir="ltr" class="s2073594Normal"><span class="s2073594SCL">Source:</span><span xml:space="preserve" class="s2073594SCL-000005"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073595Normal { 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.s2073595SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073595CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073595Normal-000000 { 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.s2073595DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073595Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073595Normal-000002 { text-indent: 0.25in; 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.s2073595000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073595SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073595SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073595Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-109"><span class="s2073595SENU">57A-8-109</span></a><span xml:space="preserve" class="s2073595SENU">. </span><span class="s2073595CL">Warranties in indirect holding.</span></p><p dir="ltr" class="s2073595Normal-000000"><span class="s2073595DefaultParagraphFont">(a) A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary that:</span></p><p dir="ltr" class="s2073595Normal-000001"><span class="s2073595DefaultParagraphFont">(1)    The entitlement order is made by an appropriate person, or if the entitlement order is by an agent, the agent has actual authority to act on behalf of the appropriate person; and</span></p><p dir="ltr" class="s2073595Normal-000001"><span class="s2073595DefaultParagraphFont">(2)    There is no adverse claim to the security entitlement.</span></p><p dir="ltr" class="s2073595Normal-000002"><span class="s2073595DefaultParagraphFont">(b) A person who delivers a security certificate to a securities intermediary for credit to a securities account or originates an instruction with respect to an uncertificated security directing that the uncertificated security be credited to a securities account makes to the securities intermediary the warranties specified in § 57A-8-108(a) or (b).</span></p><p dir="ltr" class="s2073595Normal-000002"><span class="s2073595DefaultParagraphFont">(c) If a securities intermediary delivers a security certificate to its entitlement holder or causes its entitlement holder to be registered as the owner of an uncertificated security, the securities intermediary makes to the entitlement holder the warranties specified in § 57A-8-108(a) or (b).</span></p><p dir="ltr" class="s2073595Normal"><span xml:space="preserve" class="s2073595000003"> </span></p><p dir="ltr" class="s2073595Normal"><span class="s2073595SCL">Source:</span><span xml:space="preserve" class="s2073595SCL-000004"> SL 1998, ch 284, § 1.</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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s46c02d08f0df43cc99ef1804dd9d26ddNormal { 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.s46c02d08f0df43cc99ef1804dd9d26ddSENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s46c02d08f0df43cc99ef1804dd9d26ddCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s46c02d08f0df43cc99ef1804dd9d26ddStatute { 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.s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1 { 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.s46c02d08f0df43cc99ef1804dd9d26dd000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s46c02d08f0df43cc99ef1804dd9d26ddNoIndent { 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.s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s46c02d08f0df43cc99ef1804dd9d26ddSCL { 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-8-110 - Applicability--Choice of law."><meta property="og:description" content="SDLRC Codified Law 57A-8-110 - Applicability--Choice of law."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-8-110"><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="s46c02d08f0df43cc99ef1804dd9d26ddNormal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-110" rel="noopener"><span class="s46c02d08f0df43cc99ef1804dd9d26ddSENU">57A-8-110</span></a><span xml:space="preserve" class="s46c02d08f0df43cc99ef1804dd9d26ddSENU">. </span><span class="s46c02d08f0df43cc99ef1804dd9d26ddCL">Applicability--Choice of law.</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatute"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(a) The local law of the issuer's jurisdiction, as specified in subsection (d), governs:</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(1)    The validity of a security;</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(2)    The rights and duties of the issuer with respect to registration of transfer;</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(3)    The effectiveness of registration of transfer by the issuer;</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(4)    Whether the issuer owes any duties to an adverse claimant to a security; and</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(5)    Whether an adverse claim can be asserted against a person to whom transfer of a certificated or uncertificated security is registered or a person who obtains control of an uncertificated security.</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatute"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(b) The local law of the securities intermediary's jurisdiction, as specified in subsection (e), governs:</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(1)    Acquisition of a security entitlement from the securities intermediary;</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(2)    The rights and duties of the securities intermediary and entitlement holder arising out of a security entitlement;</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(3)    Whether the securities intermediary owes any duties to an adverse claimant to a security entitlement; and</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(4)    Whether an adverse claim can be asserted against a person who acquires a security entitlement from the securities intermediary or a person who purchases a security entitlement or interest therein from an entitlement holder.</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatute"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(c) The local law of the jurisdiction in which a security certificate is located at the time of delivery governs whether an adverse claim can be asserted against a person to whom the security certificate is delivered.</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatute"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(d) "Issuer's jurisdiction" means the jurisdiction under which the issuer of the security is organized or, if permitted by the law of that jurisdiction, the law of another jurisdiction specified by the issuer. An issuer organized under the law of this State may specify the law of another jurisdiction as the law governing the matters specified in subsection (a)(2) through (5).</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatute"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(e) The following rules determine a "securities intermediary's jurisdiction" for purposes of this section:</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(1)    If an agreement between the securities intermediary and its entitlement holder governing the securities account expressly provides that a particular jurisdiction is the securities intermediary's jurisdiction for purposes of this part, this article, or this chapter, that jurisdiction is the securities intermediary's jurisdiction.</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(2)    If paragraph (1) does not apply and an agreement between the securities intermediary and its entitlement holder governing the securities account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the securities intermediary's jurisdiction.</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(3)    If neither paragraph (1) nor paragraph (2) applies and an agreement between the securities intermediary and its entitlement holder governing the securities account expressly provides that the securities account is maintained at an office in a particular jurisdiction, that jurisdiction is the securities intermediary's jurisdiction.</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(4)    If none of the preceding paragraphs applies, the securities intermediary's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the entitlement holder's account is located.</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatuteNumber1"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(5)    If none of the preceding paragraphs applies, the securities intermediary's jurisdiction is the jurisdiction in which the chief executive office of the securities intermediary is located.</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatute"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(f) A securities intermediary's jurisdiction is not determined by the physical location of certificates representing financial assets, or by the jurisdiction in which is organized the issuer of the financial asset with respect to which an entitlement holder has a security entitlement, or by the location of facilities for data processing or other record keeping concerning the account.</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddStatute"><span class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont">(g) The local law of the issuer's jurisdiction or the securities intermediary's jurisdiction governs a matter or transaction specified in subsection (a) or (b) even if the matter or transaction does not bear any relation to the jurisdiction.</span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddNormal"><span xml:space="preserve" class="s46c02d08f0df43cc99ef1804dd9d26dd000000"> </span></p><p dir="ltr" class="s46c02d08f0df43cc99ef1804dd9d26ddNoIndent"><span xml:space="preserve" class="s46c02d08f0df43cc99ef1804dd9d26ddDefaultParagraphFont-000001">Source: </span><span class="s46c02d08f0df43cc99ef1804dd9d26ddSCL">SL 1998, ch 284, § 1; SL 2000, ch 231, § 16; SL 2024, ch 198, § 41.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073597Normal { 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.s2073597SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073597CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073597Normal-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.s2073597DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073597000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073597SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073597SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073597Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-111"><span class="s2073597SENU">57A-8-111</span></a><span xml:space="preserve" class="s2073597SENU">. </span><span class="s2073597CL">Clearing corporation rules.</span></p><p dir="ltr" class="s2073597Normal-000000"><span class="s2073597DefaultParagraphFont">A rule adopted by a clearing corporation governing rights and obligations among the clearing corporation and its participants in the clearing corporation is effective even if the rule conflicts with this chapter and affects another party who does not consent to the rule.</span></p><p dir="ltr" class="s2073597Normal"><span xml:space="preserve" class="s2073597000001"> </span></p><p dir="ltr" class="s2073597Normal"><span class="s2073597SCL">Source:</span><span xml:space="preserve" class="s2073597SCL-000002"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073598Normal { 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.s2073598SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073598CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073598Normal-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.s2073598DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073598Normal-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; } span.s2073598000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073598SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073598SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073598Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-112"><span class="s2073598SENU">57A-8-112</span></a><span xml:space="preserve" class="s2073598SENU">. </span><span class="s2073598CL">Creditor's legal process.</span></p><p dir="ltr" class="s2073598Normal-000000"><span class="s2073598DefaultParagraphFont">(a) The interest of a debtor in a certificated security may be reached by a creditor only by actual seizure of the security certificate by the officer making the attachment or levy, except as otherwise provided in subsection (d). However, a certificated security for which the certificate has been surrendered to the issuer may be reached by a creditor by legal process upon the issuer.</span></p><p dir="ltr" class="s2073598Normal-000001"><span class="s2073598DefaultParagraphFont">(b) The interest of a debtor in an uncertificated security may be reached by a creditor only by legal process upon the issuer at its chief executive office in the United States, except as otherwise provided in subsection (d).</span></p><p dir="ltr" class="s2073598Normal-000001"><span class="s2073598DefaultParagraphFont">(c) The interest of a debtor in a security entitlement may be reached by a creditor only by legal process upon the securities intermediary with whom the debtor's securities account is maintained, except as otherwise provided in subsection (d).</span></p><p dir="ltr" class="s2073598Normal-000001"><span class="s2073598DefaultParagraphFont">(d) The interest of a debtor in a certificated security for which the certificate is in the possession of a secured party, or in an uncertificated security registered in the name of a secured party, or a security entitlement maintained in the name of a secured party, may be reached by a creditor by legal process upon the secured party.</span></p><p dir="ltr" class="s2073598Normal-000001"><span class="s2073598DefaultParagraphFont">(e) A creditor whose debtor is the owner of a certificated security, uncertificated security, or security entitlement is entitled to aid from a court of competent jurisdiction, by injunction or otherwise, in reaching the certificated security, uncertificated security, or security entitlement or in satisfying the claim by means allowed at law or in equity in regard to property that cannot readily be reached by other legal process.</span></p><p dir="ltr" class="s2073598Normal"><span xml:space="preserve" class="s2073598000002"> </span></p><p dir="ltr" class="s2073598Normal"><span class="s2073598SCL">Source:</span><span xml:space="preserve" class="s2073598SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073599Normal { 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.s2073599SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073599CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073599Normal-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.s2073599DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073599000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073599SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073599SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073599Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-113"><span class="s2073599SENU">57A-8-113</span></a><span xml:space="preserve" class="s2073599SENU">. </span><span class="s2073599CL">Statute of frauds inapplicable.</span></p><p dir="ltr" class="s2073599Normal-000000"><span class="s2073599DefaultParagraphFont">A contract or modification of a contract for the sale or purchase of a security is enforceable whether or not there is a writing signed or record authenticated by a party against whom enforcement is sought, even if the contract or modification is not capable of performance within one year of its making.</span></p><p dir="ltr" class="s2073599Normal"><span xml:space="preserve" class="s2073599000001"> </span></p><p dir="ltr" class="s2073599Normal"><span class="s2073599SCL">Source:</span><span xml:space="preserve" class="s2073599SCL-000002"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073600Normal { 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.s2073600SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073600CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073600Normal-000000 { 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.s2073600DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073600Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073600000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073600SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073600SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073600Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-114"><span class="s2073600SENU">57A-8-114</span></a><span xml:space="preserve" class="s2073600SENU">. </span><span class="s2073600CL">Evidentiary rules concerning certificated securities.</span></p><p dir="ltr" class="s2073600Normal-000000"><span class="s2073600DefaultParagraphFont">The following rules apply in an action on a certificated security against the issuer:</span></p><p dir="ltr" class="s2073600Normal-000001"><span class="s2073600DefaultParagraphFont">(1)    Unless specifically denied in the pleadings, each signature on a security certificate or in a necessary indorsement is admitted.</span></p><p dir="ltr" class="s2073600Normal-000001"><span class="s2073600DefaultParagraphFont">(2)    If the effectiveness of a signature is put in issue, the burden of establishing effectiveness is on the party claiming under the signature, but the signature is presumed to be genuine or authorized.</span></p><p dir="ltr" class="s2073600Normal-000001"><span class="s2073600DefaultParagraphFont">(3)    If signatures on a security certificate are admitted or established, production of the certificate entitles a holder to recover on it unless the defendant establishes a defense or a defect going to the validity of the security.</span></p><p dir="ltr" class="s2073600Normal-000001"><span class="s2073600DefaultParagraphFont">(4)    If it is shown that a defense or defect exists, the plaintiff has the burden of establishing that the plaintiff or some person under whom the plaintiff claims is a person against whom the defense or defect cannot be asserted.</span></p><p dir="ltr" class="s2073600Normal"><span xml:space="preserve" class="s2073600000002"> </span></p><p dir="ltr" class="s2073600Normal"><span class="s2073600SCL">Source:</span><span xml:space="preserve" class="s2073600SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073601Normal { 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.s2073601SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073601CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073601Normal-000000 { 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.s2073601DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073601Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073601000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073601SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073601SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073601Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-115"><span class="s2073601SENU">57A-8-115</span></a><span xml:space="preserve" class="s2073601SENU">. </span><span class="s2073601CL">Securities intermediary and others not liable to adverse claimant.</span></p><p dir="ltr" class="s2073601Normal-000000"><span class="s2073601DefaultParagraphFont">A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse claim to the financial asset, unless the securities intermediary, or broker or other agent or bailee:</span></p><p dir="ltr" class="s2073601Normal-000001"><span class="s2073601DefaultParagraphFont">(1)    Took the action after it had been served with an injunction, restraining order, or other legal process enjoining it from doing so, issued by a court of competent jurisdiction, and had a reasonable opportunity to act on the injunction, restraining order, or other legal process; or</span></p><p dir="ltr" class="s2073601Normal-000001"><span class="s2073601DefaultParagraphFont">(2)    Acted in collusion with the wrongdoer in violating the rights of the adverse claimant; or</span></p><p dir="ltr" class="s2073601Normal-000001"><span class="s2073601DefaultParagraphFont">(3)    In the case of a security certificate that has been stolen, acted with notice of the adverse claim.</span></p><p dir="ltr" class="s2073601Normal"><span xml:space="preserve" class="s2073601000002"> </span></p><p dir="ltr" class="s2073601Normal"><span class="s2073601SCL">Source:</span><span xml:space="preserve" class="s2073601SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073602Normal { 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.s2073602SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073602CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073602Normal-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.s2073602DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073602000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073602SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073602SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073602Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-116"><span class="s2073602SENU">57A-8-116</span></a><span xml:space="preserve" class="s2073602SENU">. </span><span class="s2073602CL">Securities intermediary as purchaser for value.</span></p><p dir="ltr" class="s2073602Normal-000000"><span class="s2073602DefaultParagraphFont">A securities intermediary that receives a financial asset and establishes a security entitlement to the financial asset in favor of an entitlement holder is a purchaser for value of the financial asset. A securities intermediary that acquires a security entitlement to a financial asset from another securities intermediary acquires the security entitlement for value if the securities intermediary acquiring the security entitlement establishes a security entitlement to the financial asset in favor of an entitlement holder.</span></p><p dir="ltr" class="s2073602Normal"><span xml:space="preserve" class="s2073602000001"> </span></p><p dir="ltr" class="s2073602Normal"><span class="s2073602SCL">Source:</span><span xml:space="preserve" class="s2073602SCL-000002"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073603Normal { 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.s2073603SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073603CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073603Normal-000000 { 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.s2073603DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073603Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073603Normal-000002 { text-indent: 0.25in; 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.s2073603000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073603SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073603SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073603Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-201"><span class="s2073603SENU">57A-8-201</span></a><span xml:space="preserve" class="s2073603SENU">. </span><span class="s2073603CL">Issuer.</span></p><p dir="ltr" class="s2073603Normal-000000"><span class="s2073603DefaultParagraphFont">(a) With respect to an obligation on or a defense to a security, an "issuer" includes a person that:</span></p><p dir="ltr" class="s2073603Normal-000001"><span class="s2073603DefaultParagraphFont">(1)    Places or authorizes the placing of its name on a security certificate, other than as authenticating trustee, registrar, transfer agent, or the like, to evidence a share, participation, or other interest in its property or in an enterprise, or to evidence its duty to perform an obligation represented by the certificate;</span></p><p dir="ltr" class="s2073603Normal-000001"><span class="s2073603DefaultParagraphFont">(2)    Creates a share, participation, or other interest in its property or in an enterprise, or undertakes an obligation, that is an uncertificated security;</span></p><p dir="ltr" class="s2073603Normal-000001"><span class="s2073603DefaultParagraphFont">(3)    Directly or indirectly creates a fractional interest in its rights or property, if the fractional interest is represented by a security certificate; or</span></p><p dir="ltr" class="s2073603Normal-000001"><span class="s2073603DefaultParagraphFont">(4)    Becomes responsible for, or in place of, another person described as an issuer in this section.</span></p><p dir="ltr" class="s2073603Normal-000002"><span class="s2073603DefaultParagraphFont">(b) With respect to an obligation on or defense to a security, a guarantor is an issuer to the extent of its guaranty, whether or not its obligation is noted on a security certificate.</span></p><p dir="ltr" class="s2073603Normal-000002"><span class="s2073603DefaultParagraphFont">(c) With respect to a registration of a transfer, issuer means a person on whose behalf transfer books are maintained.</span></p><p dir="ltr" class="s2073603Normal"><span xml:space="preserve" class="s2073603000003"> </span></p><p dir="ltr" class="s2073603Normal"><span class="s2073603SCL">Source:</span><span xml:space="preserve" class="s2073603SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073604Normal { 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.s2073604SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073604CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073604Normal-000000 { 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.s2073604DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073604Normal-000001 { text-indent: 0.25in; 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; } p.s2073604Normal-000002 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073604000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073604SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073604SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073604Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-202"><span class="s2073604SENU">57A-8-202</span></a><span xml:space="preserve" class="s2073604SENU">. </span><span class="s2073604CL">Issuer's responsibility and defenses; notice of defect or defense.</span></p><p dir="ltr" class="s2073604Normal-000000"><span class="s2073604DefaultParagraphFont">(a) Even against a purchaser for value and without notice, the terms of a certificated security include terms stated on the certificate and terms made part of the security by reference on the certificate to another instrument, indenture, or document or to a constitution, statute, ordinance, rule, regulation, order, or the like, to the extent the terms referred to do not conflict with terms stated on the certificate. A reference under this subsection does not of itself charge a purchaser for value with notice of a defect going to the validity of the security, even if the certificate expressly states that a person accepting it admits notice. The terms of an uncertificated security include those stated in any instrument, indenture, or document or in a constitution, statute, ordinance, rule, regulation, order, or the like, pursuant to which the security is issued.</span></p><p dir="ltr" class="s2073604Normal-000001"><span class="s2073604DefaultParagraphFont">(b) The following rules apply if an issuer asserts that a security is not valid:</span></p><p dir="ltr" class="s2073604Normal-000002"><span class="s2073604DefaultParagraphFont">(1)    A security other than one issued by a government or governmental subdivision, agency, or instrumentality, even though issued with a defect going to its validity, is valid in the hands of a purchaser for value and without notice of the particular defect unless the defect involves a violation of a constitutional provision. In that case, the security is valid in the hands of a purchaser for value and without notice of the defect, other than one who takes by original issue.</span></p><p dir="ltr" class="s2073604Normal-000002"><span class="s2073604DefaultParagraphFont">(2)    Paragraph (1) applies to an issuer that is a government or governmental subdivision, agency, or instrumentality only if there has been substantial compliance with the legal requirements governing the issue or the issuer has received a substantial consideration for the issue as a whole or for the particular security and a stated purpose of the issue is one for which the issuer has power to borrow money or issue the security.</span></p><p dir="ltr" class="s2073604Normal-000001"><span xml:space="preserve" class="s2073604DefaultParagraphFont">(c) Except as otherwise provided in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-205"><span class="s2073604DefaultParagraphFont">57A-8-205</span></a><span class="s2073604DefaultParagraphFont">, lack of genuineness of a certificated security is a complete defense, even against a purchaser for value and without notice.</span></p><p dir="ltr" class="s2073604Normal-000001"><span class="s2073604DefaultParagraphFont">(d) All other defenses of the issuer of a security, including nondelivery and conditional delivery of a certificated security, are ineffective against a purchaser for value who has taken the certificated security without notice of the particular defense.</span></p><p dir="ltr" class="s2073604Normal-000001"><span class="s2073604DefaultParagraphFont">(e) This section does not affect the right of a party to cancel a contract for a security "when, as and if issued" or "when distributed" in the event of a material change in the character of the security that is the subject of the contract or in the plan or arrangement pursuant to which the security is to be issued or distributed.</span></p><p dir="ltr" class="s2073604Normal-000001"><span class="s2073604DefaultParagraphFont">(f) If a security is held by a securities intermediary against whom an entitlement holder has a security entitlement with respect to the security, the issuer may not assert any defense that the issuer could not assert if the entitlement holder held the security directly.</span></p><p dir="ltr" class="s2073604Normal"><span xml:space="preserve" class="s2073604000003"> </span></p><p dir="ltr" class="s2073604Normal"><span class="s2073604SCL">Source:</span><span xml:space="preserve" class="s2073604SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073605Normal { 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.s2073605SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073605CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073605Normal-000000 { 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.s2073605DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073605Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073605000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073605SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073605SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073605Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-203"><span class="s2073605SENU">57A-8-203</span></a><span xml:space="preserve" class="s2073605SENU">. </span><span class="s2073605CL">Staleness as notice of defect or defense.</span></p><p dir="ltr" class="s2073605Normal-000000"><span class="s2073605DefaultParagraphFont">After an act or event, other than a call that has been revoked, creating a right to immediate performance of the principal obligation represented by a certificated security or setting a date on or after which the security is to be presented or surrendered for redemption or exchange, a purchaser is charged with notice of any defect in its issue or defense of the issuer, if the act or event:</span></p><p dir="ltr" class="s2073605Normal-000001"><span class="s2073605DefaultParagraphFont">(1)    Requires the payment of money, the delivery of a certificated security, the registration of transfer of an uncertificated security, or any of them on presentation or surrender of the security certificate, the money or security is available on the date set for payment or exchange, and the purchaser takes the security more than one year after that date; or</span></p><p dir="ltr" class="s2073605Normal-000001"><span class="s2073605DefaultParagraphFont">(2)    Is not covered by paragraph (1) and the purchaser takes the security more than two years after the date set for surrender or presentation or the date on which performance became due.</span></p><p dir="ltr" class="s2073605Normal"><span xml:space="preserve" class="s2073605000002"> </span></p><p dir="ltr" class="s2073605Normal"><span class="s2073605SCL">Source:</span><span xml:space="preserve" class="s2073605SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073606Normal { 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.s2073606SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073606CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073606Normal-000000 { 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.s2073606DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073606Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073606000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073606SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073606SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073606Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-204"><span class="s2073606SENU">57A-8-204</span></a><span xml:space="preserve" class="s2073606SENU">. </span><span class="s2073606CL">Effect of issuer's restriction on transfer.</span></p><p dir="ltr" class="s2073606Normal-000000"><span class="s2073606DefaultParagraphFont">A restriction on transfer of a security imposed by the issuer, even if otherwise lawful, is ineffective against a person without knowledge of the restriction unless:</span></p><p dir="ltr" class="s2073606Normal-000001"><span class="s2073606DefaultParagraphFont">(1)    The security is certificated and the restriction is noted conspicuously on the security certificate; or</span></p><p dir="ltr" class="s2073606Normal-000001"><span class="s2073606DefaultParagraphFont">(2)    The security is uncertificated and the registered owner has been notified of the restriction.</span></p><p dir="ltr" class="s2073606Normal"><span xml:space="preserve" class="s2073606000002"> </span></p><p dir="ltr" class="s2073606Normal"><span class="s2073606SCL">Source:</span><span xml:space="preserve" class="s2073606SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073607Normal { 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.s2073607SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073607CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073607Normal-000000 { 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.s2073607DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073607Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073607000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073607SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073607SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073607Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-205"><span class="s2073607SENU">57A-8-205</span></a><span xml:space="preserve" class="s2073607SENU">. </span><span class="s2073607CL">Effect of unauthorized signature on security certificate.</span></p><p dir="ltr" class="s2073607Normal-000000"><span class="s2073607DefaultParagraphFont">An unauthorized signature placed on a security certificate before or in the course of issue is ineffective, but the signature is effective in favor of a purchaser for value of the certificated security if the purchaser is without notice of the lack of authority and the signing has been done by:</span></p><p dir="ltr" class="s2073607Normal-000001"><span class="s2073607DefaultParagraphFont">(1)    An authenticating trustee, registrar, transfer agent, or other person entrusted by the issuer with the signing of the security certificate or of similar security certificates, or the immediate preparation for signing of any of them; or</span></p><p dir="ltr" class="s2073607Normal-000001"><span class="s2073607DefaultParagraphFont">(2)    An employee of the issuer, or of any of the persons listed in paragraph (1), entrusted with responsible handling of the security certificate.</span></p><p dir="ltr" class="s2073607Normal"><span xml:space="preserve" class="s2073607000002"> </span></p><p dir="ltr" class="s2073607Normal"><span class="s2073607SCL">Source:</span><span xml:space="preserve" class="s2073607SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073608Normal { 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.s2073608SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073608CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073608Normal-000000 { 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.s2073608DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073608Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073608Normal-000002 { text-indent: 0.25in; 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.s2073608000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073608SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073608SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073608Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-206"><span class="s2073608SENU">57A-8-206</span></a><span xml:space="preserve" class="s2073608SENU">. </span><span class="s2073608CL">Completion or alteration of security certificate.</span></p><p dir="ltr" class="s2073608Normal-000000"><span class="s2073608DefaultParagraphFont">(a) If a security certificate contains the signatures necessary to its issue or transfer but is incomplete in any other respect:</span></p><p dir="ltr" class="s2073608Normal-000001"><span class="s2073608DefaultParagraphFont">(1)    Any person may complete it by filling in the blanks as authorized; and</span></p><p dir="ltr" class="s2073608Normal-000001"><span class="s2073608DefaultParagraphFont">(2)    Even if the blanks are incorrectly filled in, the security certificate as completed is enforceable by a purchaser who took it for value and without notice of the incorrectness.</span></p><p dir="ltr" class="s2073608Normal-000002"><span class="s2073608DefaultParagraphFont">(b) A complete security certificate that has been improperly altered, even if fraudulently, remains enforceable, but only according to its original terms.</span></p><p dir="ltr" class="s2073608Normal"><span xml:space="preserve" class="s2073608000003"> </span></p><p dir="ltr" class="s2073608Normal"><span class="s2073608SCL">Source:</span><span xml:space="preserve" class="s2073608SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073609Normal { 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.s2073609SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073609CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073609Normal-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.s2073609DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073609Normal-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; } span.s2073609000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073609SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073609SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073609Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-207"><span class="s2073609SENU">57A-8-207</span></a><span xml:space="preserve" class="s2073609SENU">. </span><span class="s2073609CL">Rights and duties of issuer with respect to registered owners.</span></p><p dir="ltr" class="s2073609Normal-000000"><span class="s2073609DefaultParagraphFont">(a) Before due presentment for registration of transfer of a certificated security in registered form or of an instruction requesting registration of transfer of an uncertificated security, the issuer or indenture trustee may treat the registered owner as the person exclusively entitled to vote, receive notifications, and otherwise exercise all the rights and powers of an owner.</span></p><p dir="ltr" class="s2073609Normal-000001"><span class="s2073609DefaultParagraphFont">(b) This chapter does not affect the liability of the registered owner of a security for a call, assessment, or the like.</span></p><p dir="ltr" class="s2073609Normal"><span xml:space="preserve" class="s2073609000002"> </span></p><p dir="ltr" class="s2073609Normal"><span class="s2073609SCL">Source:</span><span xml:space="preserve" class="s2073609SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073610Normal { 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.s2073610SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073610CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073610Normal-000000 { 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.s2073610DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073610Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073610Normal-000002 { text-indent: 0.25in; 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.s2073610000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073610SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073610SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073610Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-208"><span class="s2073610SENU">57A-8-208</span></a><span xml:space="preserve" class="s2073610SENU">. </span><span class="s2073610CL">Effect of signature of authenticating trustee, registrar, or transfer agent.</span></p><p dir="ltr" class="s2073610Normal-000000"><span class="s2073610DefaultParagraphFont">(a) A person signing a security certificate as authenticating trustee, registrar, transfer agent, or the like, warrants to a purchaser for value of the certificated security, if the purchaser is without notice of a particular defect, that:</span></p><p dir="ltr" class="s2073610Normal-000001"><span class="s2073610DefaultParagraphFont">(1)    The certificate is genuine;</span></p><p dir="ltr" class="s2073610Normal-000001"><span class="s2073610DefaultParagraphFont">(2)    The person's own participation in the issue of the security is within the person's capacity and within the scope of the authority received by the person from the issuer; and</span></p><p dir="ltr" class="s2073610Normal-000001"><span class="s2073610DefaultParagraphFont">(3)    The person has reasonable grounds to believe that the certificated security is in the form and within the amount the issuer is authorized to issue.</span></p><p dir="ltr" class="s2073610Normal-000002"><span class="s2073610DefaultParagraphFont">(b) Unless otherwise agreed, a person signing under subsection (a) does not assume responsibility for the validity of the security in other respects.</span></p><p dir="ltr" class="s2073610Normal"><span xml:space="preserve" class="s2073610000003"> </span></p><p dir="ltr" class="s2073610Normal"><span class="s2073610SCL">Source:</span><span xml:space="preserve" class="s2073610SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073611Normal { 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.s2073611SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073611CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073611Normal-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.s2073611DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073611000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073611SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073611SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073611Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-209"><span class="s2073611SENU">57A-8-209</span></a><span xml:space="preserve" class="s2073611SENU">. </span><span class="s2073611CL">Issuer's lien.</span></p><p dir="ltr" class="s2073611Normal-000000"><span class="s2073611DefaultParagraphFont">A lien in favor of an issuer upon a certificated security is valid against a purchaser only if the right of the issuer to the lien is noted conspicuously on the security certificate.</span></p><p dir="ltr" class="s2073611Normal"><span xml:space="preserve" class="s2073611000001"> </span></p><p dir="ltr" class="s2073611Normal"><span class="s2073611SCL">Source:</span><span xml:space="preserve" class="s2073611SCL-000002"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073612Normal { 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.s2073612SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073612CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073612Normal-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.s2073612DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073612Normal-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; } span.s2073612000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073612SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073612SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073612Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-210"><span class="s2073612SENU">57A-8-210</span></a><span xml:space="preserve" class="s2073612SENU">. </span><span class="s2073612CL">Overissue.</span></p><p dir="ltr" class="s2073612Normal-000000"><span class="s2073612DefaultParagraphFont">(a) In this section, "overissue" means the issue of securities in excess of the amount the issuer has corporate power to issue, but an overissue does not occur if appropriate action has cured the overissue.</span></p><p dir="ltr" class="s2073612Normal-000001"><span class="s2073612DefaultParagraphFont">(b) Except as otherwise provided in subsections (c) and (d), the provisions of this chapter which validate a security or compel its issue or reissue do not apply to the extent that validation, issue, or reissue would result in overissue.</span></p><p dir="ltr" class="s2073612Normal-000001"><span class="s2073612DefaultParagraphFont">(c) If an identical security not constituting an overissue is reasonably available for purchase, a person entitled to issue or validation may compel the issuer to purchase the security and deliver it if certificated or register its transfer if uncertificated, against surrender of any security certificate the person holds.</span></p><p dir="ltr" class="s2073612Normal-000001"><span class="s2073612DefaultParagraphFont">(d) If a security is not reasonably available for purchase, a person entitled to issue or validation may recover from the issuer the price the person or the last purchaser for value paid for it with interest from the date of the person's demand.</span></p><p dir="ltr" class="s2073612Normal"><span xml:space="preserve" class="s2073612000002"> </span></p><p dir="ltr" class="s2073612Normal"><span class="s2073612SCL">Source:</span><span xml:space="preserve" class="s2073612SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073613Normal { 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.s2073613SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073613CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073613Normal-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.s2073613DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073613Normal-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.s2073613Normal-000002 { 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; } span.s2073613000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073613SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073613SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073613Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-301"><span class="s2073613SENU">57A-8-301</span></a><span xml:space="preserve" class="s2073613SENU">. </span><span class="s2073613CL">Delivery.</span></p><p dir="ltr" class="s2073613Normal-000000"><span class="s2073613DefaultParagraphFont">(a) Delivery of a certificated security to a purchaser occurs when:</span></p><p dir="ltr" class="s2073613Normal-000001"><span class="s2073613DefaultParagraphFont">(1)    The purchaser acquires possession of the security certificate;</span></p><p dir="ltr" class="s2073613Normal-000001"><span class="s2073613DefaultParagraphFont">(2)    Another person, other than a securities intermediary, either acquires possession of the security certificate on behalf of the purchaser or, having previously acquired possession of the certificate, acknowledges that it holds for the purchaser; or</span></p><p dir="ltr" class="s2073613Normal-000001"><span class="s2073613DefaultParagraphFont">(3)    A securities intermediary acting on behalf of the purchaser acquires possession of the security certificate, only if the certificate is in registered form and is (i) registered in the name of the purchaser, (ii) payable to the order of the purchaser, or (iii) specially indorsed to the purchaser by an effective indorsement and has not been indorsed to the securities intermediary or in blank.</span></p><p dir="ltr" class="s2073613Normal-000002"><span class="s2073613DefaultParagraphFont">(b) Delivery of an uncertificated security to a purchaser occurs when:</span></p><p dir="ltr" class="s2073613Normal-000001"><span class="s2073613DefaultParagraphFont">(1)    The issuer registers the purchaser as the registered owner, upon original issue or registration of transfer; or</span></p><p dir="ltr" class="s2073613Normal-000001"><span class="s2073613DefaultParagraphFont">(2)    Another person, other than a securities intermediary, either becomes the registered owner of the uncertificated security on behalf of the purchaser or, having previously become the registered owner, acknowledges that it holds for the purchaser.</span></p><p dir="ltr" class="s2073613Normal"><span xml:space="preserve" class="s2073613000003"> </span></p><p dir="ltr" class="s2073613Normal"><span class="s2073613SCL">Source:</span><span xml:space="preserve" class="s2073613SCL-000004"> SL 1998, ch 284, § 1; SL 2000, ch 231, § 17.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073614Normal { 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.s2073614SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073614CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073614Normal-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.s2073614DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073614Normal-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; } span.s2073614000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073614SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073614SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073614Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-302"><span class="s2073614SENU">57A-8-302</span></a><span xml:space="preserve" class="s2073614SENU">. </span><span class="s2073614CL">Rights of purchaser.</span></p><p dir="ltr" class="s2073614Normal-000000"><span class="s2073614DefaultParagraphFont">(a) Except as otherwise provided in subsections (b) and (c), a purchaser of a certificated or uncertificated security acquires all rights in the security that the transferor had or had power to transfer.</span></p><p dir="ltr" class="s2073614Normal-000001"><span class="s2073614DefaultParagraphFont">(b) A purchaser of a limited interest acquires rights only to the extent of the interest purchased.</span></p><p dir="ltr" class="s2073614Normal-000001"><span class="s2073614DefaultParagraphFont">(c) A purchaser of a certificated security who as a previous holder had notice of an adverse claim does not improve its position by taking from a protected purchaser.</span></p><p dir="ltr" class="s2073614Normal"><span xml:space="preserve" class="s2073614000002"> </span></p><p dir="ltr" class="s2073614Normal"><span class="s2073614SCL">Source:</span><span xml:space="preserve" class="s2073614SCL-000003"> SL 1998, ch 284, § 1; SL 2000, ch 231, § 18.</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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s78562663f5504247abf463f09ce441c7Normal { 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.s78562663f5504247abf463f09ce441c7SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s78562663f5504247abf463f09ce441c7CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s78562663f5504247abf463f09ce441c7Statute { 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.s78562663f5504247abf463f09ce441c7DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s78562663f5504247abf463f09ce441c7StatuteNumber1 { 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.s78562663f5504247abf463f09ce441c7000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s78562663f5504247abf463f09ce441c7NoIndent { 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.s78562663f5504247abf463f09ce441c7DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s78562663f5504247abf463f09ce441c7SCL { 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-8-303 - Protected purchaser."><meta property="og:description" content="SDLRC Codified Law 57A-8-303 - Protected purchaser."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-8-303"><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="s78562663f5504247abf463f09ce441c7Normal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-303" rel="noopener"><span class="s78562663f5504247abf463f09ce441c7SENU">57A-8-303</span></a><span xml:space="preserve" class="s78562663f5504247abf463f09ce441c7SENU">. </span><span class="s78562663f5504247abf463f09ce441c7CL">Protected purchaser.</span></p><p dir="ltr" class="s78562663f5504247abf463f09ce441c7Statute"><span class="s78562663f5504247abf463f09ce441c7DefaultParagraphFont">(a) "Protected purchaser" means a purchaser of a certificated or uncertificated security, or of an interest therein, who:</span></p><p dir="ltr" class="s78562663f5504247abf463f09ce441c7StatuteNumber1"><span class="s78562663f5504247abf463f09ce441c7DefaultParagraphFont">(1)    Gives value;</span></p><p dir="ltr" class="s78562663f5504247abf463f09ce441c7StatuteNumber1"><span class="s78562663f5504247abf463f09ce441c7DefaultParagraphFont">(2)    Does not have notice of any adverse claim to the security; and</span></p><p dir="ltr" class="s78562663f5504247abf463f09ce441c7StatuteNumber1"><span class="s78562663f5504247abf463f09ce441c7DefaultParagraphFont">(3)    Obtains control of the certificated or uncertificated security.</span></p><p dir="ltr" class="s78562663f5504247abf463f09ce441c7Statute"><span class="s78562663f5504247abf463f09ce441c7DefaultParagraphFont">(b) A protected purchaser also acquires its interest in the security free of any adverse claim.</span></p><p dir="ltr" class="s78562663f5504247abf463f09ce441c7Normal"><span xml:space="preserve" class="s78562663f5504247abf463f09ce441c7000000"> </span></p><p dir="ltr" class="s78562663f5504247abf463f09ce441c7NoIndent"><span xml:space="preserve" class="s78562663f5504247abf463f09ce441c7DefaultParagraphFont-000001">Source: </span><span class="s78562663f5504247abf463f09ce441c7SCL">SL 1998, ch 284, § 1; SL 2024, ch 198, § 42.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073616Normal { 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.s2073616SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073616CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073616Normal-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.s2073616DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073616Normal-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; } span.s2073616000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073616SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073616SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073616Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-304"><span class="s2073616SENU">57A-8-304</span></a><span xml:space="preserve" class="s2073616SENU">. </span><span class="s2073616CL">Indorsement.</span></p><p dir="ltr" class="s2073616Normal-000000"><span class="s2073616DefaultParagraphFont">(a) An indorsement may be in blank or special. An indorsement in blank includes an indorsement to bearer. A special indorsement specifies to whom a security is to be transferred or who has power to transfer it. A holder may convert a blank indorsement to a special indorsement.</span></p><p dir="ltr" class="s2073616Normal-000001"><span class="s2073616DefaultParagraphFont">(b) An indorsement purporting to be only of part of a security certificate representing units intended by the issuer to be separately transferable is effective to the extent of the indorsement.</span></p><p dir="ltr" class="s2073616Normal-000001"><span class="s2073616DefaultParagraphFont">(c) An indorsement, whether special or in blank, does not constitute a transfer until delivery of the certificate on which it appears or, if the indorsement is on a separate document, until delivery of both the document and the certificate.</span></p><p dir="ltr" class="s2073616Normal-000001"><span class="s2073616DefaultParagraphFont">(d) If a security certificate in registered form has been delivered to a purchaser without a necessary indorsement, the purchaser may become a protected purchaser only when the indorsement is supplied. However, against a transferor, a transfer is complete upon delivery and the purchaser has a specifically enforceable right to have any necessary indorsement supplied.</span></p><p dir="ltr" class="s2073616Normal-000001"><span class="s2073616DefaultParagraphFont">(e) An indorsement of a security certificate in bearer form may give notice of an adverse claim to the certificate, but it does not otherwise affect a right to registration that the holder possesses.</span></p><p dir="ltr" class="s2073616Normal-000001"><span xml:space="preserve" class="s2073616DefaultParagraphFont">(f) Unless otherwise agreed, a person making an indorsement assumes only the obligations provided in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-108"><span class="s2073616DefaultParagraphFont">57A-8-108</span></a><span xml:space="preserve" class="s2073616DefaultParagraphFont"> and not an obligation that the security will be honored by the issuer.</span></p><p dir="ltr" class="s2073616Normal"><span xml:space="preserve" class="s2073616000002"> </span></p><p dir="ltr" class="s2073616Normal"><span class="s2073616SCL">Source:</span><span xml:space="preserve" class="s2073616SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073617Normal { 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.s2073617SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073617CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073617Normal-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.s2073617DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073617Normal-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; } span.s2073617000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073617SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073617SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073617Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-305"><span class="s2073617SENU">57A-8-305</span></a><span xml:space="preserve" class="s2073617SENU">. </span><span class="s2073617CL">Instruction.</span></p><p dir="ltr" class="s2073617Normal-000000"><span class="s2073617DefaultParagraphFont">(a) If an instruction has been originated by an appropriate person but is incomplete in any other respect, any person may complete it as authorized and the issuer may rely on it as completed, even though it has been completed incorrectly.</span></p><p dir="ltr" class="s2073617Normal-000001"><span xml:space="preserve" class="s2073617DefaultParagraphFont">(b) Unless otherwise agreed, a person initiating an instruction assumes only the obligations imposed by § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-108"><span class="s2073617DefaultParagraphFont">57A-8-108</span></a><span xml:space="preserve" class="s2073617DefaultParagraphFont"> and not an obligation that the security will be honored by the issuer.</span></p><p dir="ltr" class="s2073617Normal"><span xml:space="preserve" class="s2073617000002"> </span></p><p dir="ltr" class="s2073617Normal"><span class="s2073617SCL">Source:</span><span xml:space="preserve" class="s2073617SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073618Normal { 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.s2073618SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073618CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073618Normal-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.s2073618DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073618Normal-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.s2073618Normal-000002 { 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; } span.s2073618000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073618SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073618SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073618Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-306"><span class="s2073618SENU">57A-8-306</span></a><span xml:space="preserve" class="s2073618SENU">. </span><span class="s2073618CL">Effect of guaranteeing signature, indorsement, or instruction.</span></p><p dir="ltr" class="s2073618Normal-000000"><span class="s2073618DefaultParagraphFont">(a) A person who guarantees a signature of an indorser of a security certificate warrants that at the time of signing:</span></p><p dir="ltr" class="s2073618Normal-000001"><span class="s2073618DefaultParagraphFont">(1)    The signature was genuine;</span></p><p dir="ltr" class="s2073618Normal-000001"><span class="s2073618DefaultParagraphFont">(2)    The signer was an appropriate person to indorse, or if the signature is by an agent, the agent had actual authority to act on behalf of the appropriate person; and</span></p><p dir="ltr" class="s2073618Normal-000001"><span class="s2073618DefaultParagraphFont">(3)    The signer had legal capacity to sign.</span></p><p dir="ltr" class="s2073618Normal-000002"><span class="s2073618DefaultParagraphFont">(b) A person who guarantees a signature of the originator of an instruction warrants that at the time of signing:</span></p><p dir="ltr" class="s2073618Normal-000001"><span class="s2073618DefaultParagraphFont">(1)    The signature was genuine;</span></p><p dir="ltr" class="s2073618Normal-000001"><span class="s2073618DefaultParagraphFont">(2)    The signer was an appropriate person to originate the instruction, or if the signature is by an agent, the agent had actual authority to act on behalf of the appropriate person, if the person specified in the instruction as the registered owner was, in fact, the registered owner, as to which fact the signature guarantor does not make a warranty; and</span></p><p dir="ltr" class="s2073618Normal-000001"><span class="s2073618DefaultParagraphFont">(3)    The signer had legal capacity to sign.</span></p><p dir="ltr" class="s2073618Normal-000002"><span class="s2073618DefaultParagraphFont">(c) A person who specially guarantees the signature of an originator of an instruction makes the warranties of a signature guarantor under subsection (b) and also warrants that at the time the instruction is presented to the issuer:</span></p><p dir="ltr" class="s2073618Normal-000001"><span class="s2073618DefaultParagraphFont">(1)    The person specified in the instruction as the registered owner of the uncertificated security will be the registered owner; and</span></p><p dir="ltr" class="s2073618Normal-000001"><span class="s2073618DefaultParagraphFont">(2)    The transfer of the uncertificated security requested in the instruction will be registered by the issuer free from all liens, security interests, restrictions, and claims other than those specified in the instruction.</span></p><p dir="ltr" class="s2073618Normal-000002"><span class="s2073618DefaultParagraphFont">(d) A guarantor under subsections (a) and (b) or a special guarantor under subsection (c) does not otherwise warrant the rightfulness of the transfer.</span></p><p dir="ltr" class="s2073618Normal-000002"><span class="s2073618DefaultParagraphFont">(e) A person who guarantees an indorsement of a security certificate makes the warranties of a signature guarantor under subsection (a) and also warrants the rightfulness of the transfer in all respects.</span></p><p dir="ltr" class="s2073618Normal-000002"><span class="s2073618DefaultParagraphFont">(f) A person who guarantees an instruction requesting the transfer of an uncertificated security makes the warranties of a special signature guarantor under subsection (c) and also warrants the rightfulness of the transfer in all respects.</span></p><p dir="ltr" class="s2073618Normal-000002"><span class="s2073618DefaultParagraphFont">(g) An issuer may not require a special guaranty of signature, a guaranty of indorsement, or a guaranty of instruction as a condition to registration of transfer.</span></p><p dir="ltr" class="s2073618Normal-000002"><span class="s2073618DefaultParagraphFont">(h) The warranties under this section are made to a person taking or dealing with the security in reliance on the guaranty, and the guarantor is liable to the person for loss resulting from their breach. An indorser or originator of an instruction whose signature, indorsement, or instruction has been guaranteed is liable to a guarantor for any loss suffered by the guarantor as a result of breach of the warranties of the guarantor.</span></p><p dir="ltr" class="s2073618Normal"><span xml:space="preserve" class="s2073618000003"> </span></p><p dir="ltr" class="s2073618Normal"><span class="s2073618SCL">Source:</span><span xml:space="preserve" class="s2073618SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073619Normal { 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.s2073619SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073619CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073619Normal-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.s2073619DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073619000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073619SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073619SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073619Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-307"><span class="s2073619SENU">57A-8-307</span></a><span xml:space="preserve" class="s2073619SENU">. </span><span class="s2073619CL">Purchaser's right to requisites for registration of transfer.</span></p><p dir="ltr" class="s2073619Normal-000000"><span class="s2073619DefaultParagraphFont">Unless otherwise agreed, the transferor of a security on due demand shall supply the purchaser with proof of authority to transfer or with any other requisite necessary to obtain registration of the transfer of the security, but if the transfer is not for value, a transferor need not comply unless the purchaser pays the necessary expenses. If the transferor fails within a reasonable time to comply with the demand, the purchaser may reject or rescind the transfer.</span></p><p dir="ltr" class="s2073619Normal"><span xml:space="preserve" class="s2073619000001"> </span></p><p dir="ltr" class="s2073619Normal"><span class="s2073619SCL">Source:</span><span xml:space="preserve" class="s2073619SCL-000002"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /> <HTML> <HEAD> <HTML> <HEAD> <meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-8 - INVESTMENT SECURITIES57A-8-308 </title> <META NAME="Keywords" Content="South Dakota Codified Laws SDCL 57A-8-308 "> <META NAME="Description" Content="South Dakota Codified Laws 57A-8-308"> </HEAD> <BODY> <!-- File converted by Wp2Html Version 4.0 --> <!-- Email Andrew@brackenbeds.co.uk for more details --> <!-- WP Style Open: System_34 --><!-- WP Style End: System_34 --> <Div align="full"> <!-- WP Paired Style On: SENU -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: SENU --> 57A-8-308 to 57A-8-321. <!-- WP Paired Style Off: SENU -->&nbsp;<!-- WP Style End: SENU --> Repealed by SL 1998, ch 284, &#167;&nbsp;1<p> </BODY> </HTML> <br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073621Normal { 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.s2073621SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073621CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073621Normal-000000 { 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.s2073621DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073621Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073621Normal-000002 { text-indent: 0.25in; 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.s2073621000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073621SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073621SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073621Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-401"><span class="s2073621SENU">57A-8-401</span></a><span xml:space="preserve" class="s2073621SENU">. </span><span class="s2073621CL">Duty of issuer to register transfer.</span></p><p dir="ltr" class="s2073621Normal-000000"><span class="s2073621DefaultParagraphFont">(a) If a certificated security in registered form is presented to an issuer with a request to register transfer or an instruction is presented to an issuer with a request to register transfer of an uncertificated security, the issuer shall register the transfer as requested if:</span></p><p dir="ltr" class="s2073621Normal-000001"><span class="s2073621DefaultParagraphFont">(1)    Under the terms of the security the person seeking registration of transfer is eligible to have the security registered in its name;</span></p><p dir="ltr" class="s2073621Normal-000001"><span class="s2073621DefaultParagraphFont">(2)    The indorsement or instruction is made by the appropriate person or by an agent who has actual authority to act on behalf of the appropriate person;</span></p><p dir="ltr" class="s2073621Normal-000001"><span xml:space="preserve" class="s2073621DefaultParagraphFont">(3)    Reasonable assurance is given that the indorsement or instruction is genuine and authorized (§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-402"><span class="s2073621DefaultParagraphFont">57A-8-402</span></a><span class="s2073621DefaultParagraphFont">);</span></p><p dir="ltr" class="s2073621Normal-000001"><span class="s2073621DefaultParagraphFont">(4)    Any applicable law relating to the collection of taxes has been complied with;</span></p><p dir="ltr" class="s2073621Normal-000001"><span xml:space="preserve" class="s2073621DefaultParagraphFont">(5)    The transfer does not violate any restriction on transfer imposed by the issuer in accordance with § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-204"><span class="s2073621DefaultParagraphFont">57A-8-204</span></a><span class="s2073621DefaultParagraphFont">;</span></p><p dir="ltr" class="s2073621Normal-000001"><span xml:space="preserve" class="s2073621DefaultParagraphFont">(6)    A demand that the issuer not register transfer has not become effective under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-403"><span class="s2073621DefaultParagraphFont">57A-8-403</span></a><span class="s2073621DefaultParagraphFont">, or the issuer has complied with § 57A-8-403(b) but no legal process or indemnity bond is obtained as provided in § 57A-8-403(d); and</span></p><p dir="ltr" class="s2073621Normal-000001"><span class="s2073621DefaultParagraphFont">(7)    The transfer is in fact rightful or is to a protected purchaser.</span></p><p dir="ltr" class="s2073621Normal-000002"><span class="s2073621DefaultParagraphFont">(b) If an issuer is under a duty to register a transfer of a security, the issuer is liable to a person presenting a certificated security or an instruction for registration or to the person's principal for loss resulting from unreasonable delay in registration or failure or refusal to register the transfer.</span></p><p dir="ltr" class="s2073621Normal"><span xml:space="preserve" class="s2073621000003"> </span></p><p dir="ltr" class="s2073621Normal"><span class="s2073621SCL">Source:</span><span xml:space="preserve" class="s2073621SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073622Normal { 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.s2073622SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073622CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073622Normal-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.s2073622DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073622Normal-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.s2073622Normal-000002 { 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.s2073622Normal-000003 { 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.s2073622000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073622SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073622SCL-000005 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073622Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-402"><span class="s2073622SENU">57A-8-402</span></a><span xml:space="preserve" class="s2073622SENU">. </span><span class="s2073622CL">Assurance that indorsement or instruction is effective.</span></p><p dir="ltr" class="s2073622Normal-000000"><span class="s2073622DefaultParagraphFont">(a) An issuer may require the following assurance that each necessary indorsement or each instruction is genuine and authorized:</span></p><p dir="ltr" class="s2073622Normal-000001"><span class="s2073622DefaultParagraphFont">(1)    In all cases, a guaranty of the signature of the person making an indorsement or originating an instruction including, in the case of an instruction, reasonable assurance of identity;</span></p><p dir="ltr" class="s2073622Normal-000001"><span class="s2073622DefaultParagraphFont">(2)    If the indorsement is made or the instruction is originated by an agent, appropriate assurance of actual authority to sign;</span></p><p dir="ltr" class="s2073622Normal-000001"><span class="s2073622DefaultParagraphFont">(3)    If the indorsement is made or the instruction is originated by a fiduciary pursuant to § 57A-8-107(a)(4) or (a)(5), appropriate evidence of appointment or incumbency;</span></p><p dir="ltr" class="s2073622Normal-000001"><span class="s2073622DefaultParagraphFont">(4)    If there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and</span></p><p dir="ltr" class="s2073622Normal-000001"><span class="s2073622DefaultParagraphFont">(5)    If the indorsement is made or the instruction is originated by a person not covered by another provision of this subsection, assurance appropriate to the case corresponding as nearly as may be to the provisions of this subsection.</span></p><p dir="ltr" class="s2073622Normal-000002"><span class="s2073622DefaultParagraphFont">(b) An issuer may elect to require reasonable assurance beyond that specified in this section.</span></p><p dir="ltr" class="s2073622Normal-000002"><span class="s2073622DefaultParagraphFont">(c) In this section:</span></p><p dir="ltr" class="s2073622Normal-000001"><span class="s2073622DefaultParagraphFont">(1)    "Guaranty of the signature" means a guaranty signed by or on behalf of a person reasonably believed by the issuer to be responsible. An issuer may adopt standards with respect to responsibility if they are not manifestly unreasonable.</span></p><p dir="ltr" class="s2073622Normal-000001"><span class="s2073622DefaultParagraphFont">(2)    "Appropriate evidence of appointment or incumbency" means:</span></p><p dir="ltr" class="s2073622Normal-000003"><span class="s2073622DefaultParagraphFont">(i)    In the case of a fiduciary appointed or qualified by a court, a certificate issued by or under the direction or supervision of the court or an officer thereof and dated within sixty days before the date of presentation for transfer; or</span></p><p dir="ltr" class="s2073622Normal-000003"><span class="s2073622DefaultParagraphFont">(ii)    In any other case, a copy of a document showing the appointment or a certificate issued by or on behalf of a person reasonably believed by an issuer to be responsible or, in the absence of that document or certificate, other evidence the issuer reasonably considers appropriate.</span></p><p dir="ltr" class="s2073622Normal"><span xml:space="preserve" class="s2073622000004"> </span></p><p dir="ltr" class="s2073622Normal"><span class="s2073622SCL">Source:</span><span xml:space="preserve" class="s2073622SCL-000005"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073623Normal { 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.s2073623SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073623CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073623Normal-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.s2073623DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073623Normal-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.s2073623Normal-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.s2073623000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073623SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073623SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073623Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-403"><span class="s2073623SENU">57A-8-403</span></a><span xml:space="preserve" class="s2073623SENU">. </span><span class="s2073623CL">Demand that issuer not register transfer.</span></p><p dir="ltr" class="s2073623Normal-000000"><span class="s2073623DefaultParagraphFont">(a) A person who is an appropriate person to make an indorsement or originate an instruction may demand that the issuer not register transfer of a security by communicating to the issuer a notification that identifies the registered owner and the issue of which the security is a part and provides an address for communications directed to the person making the demand. The demand is effective only if it is received by the issuer at a time and in a manner affording the issuer reasonable opportunity to act on it.</span></p><p dir="ltr" class="s2073623Normal-000001"><span class="s2073623DefaultParagraphFont">(b) If a certificated security in registered form is presented to an issuer with a request to register transfer or an instruction is presented to an issuer with a request to register transfer of an uncertificated security after a demand that the issuer not register transfer has become effective, the issuer shall promptly communicate to (i) the person who initiated the demand at the address provided in the demand and (ii) the person who presented the security for registration of transfer or initiated the instruction requesting registration of transfer a notification stating that:</span></p><p dir="ltr" class="s2073623Normal-000002"><span class="s2073623DefaultParagraphFont">(1)    The certificated security has been presented for registration of transfer or the instruction for registration of transfer of the uncertificated security has been received;</span></p><p dir="ltr" class="s2073623Normal-000002"><span class="s2073623DefaultParagraphFont">(2)    A demand that the issuer not register transfer had previously been received; and</span></p><p dir="ltr" class="s2073623Normal-000002"><span class="s2073623DefaultParagraphFont">(3)    The issuer will withhold registration of transfer for a period of time stated in the notification in order to provide the person who initiated the demand an opportunity to obtain legal process or an indemnity bond.</span></p><p dir="ltr" class="s2073623Normal-000001"><span class="s2073623DefaultParagraphFont">(c) The period described in subsection (b)(3) may not exceed thirty days after the date of communication of the notification. A shorter period may be specified by the issuer if it is not manifestly unreasonable.</span></p><p dir="ltr" class="s2073623Normal-000001"><span class="s2073623DefaultParagraphFont">(d) An issuer is not liable to a person who initiated a demand that the issuer not register transfer for any loss the person suffers as a result of registration of a transfer pursuant to an effective indorsement or instruction if the person who initiated the demand does not, within the time stated in the issuer's communication, either:</span></p><p dir="ltr" class="s2073623Normal-000002"><span class="s2073623DefaultParagraphFont">(1)    Obtain an appropriate restraining order, injunction, or other process from a court of competent jurisdiction enjoining the issuer from registering the transfer; or</span></p><p dir="ltr" class="s2073623Normal-000002"><span class="s2073623DefaultParagraphFont">(2)    File with the issuer an indemnity bond, sufficient in the issuer's judgment to protect the issuer and any transfer agent, registrar, or other agent of the issuer involved from any loss it or they may suffer by refusing to register the transfer.</span></p><p dir="ltr" class="s2073623Normal-000001"><span class="s2073623DefaultParagraphFont">(e) This section does not relieve an issuer from liability for registering transfer pursuant to an indorsement or instruction that was not effective.</span></p><p dir="ltr" class="s2073623Normal"><span xml:space="preserve" class="s2073623000003"> </span></p><p dir="ltr" class="s2073623Normal"><span class="s2073623SCL">Source:</span><span xml:space="preserve" class="s2073623SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073624Normal { 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.s2073624SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073624CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073624Normal-000000 { 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.s2073624DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073624Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073624Normal-000002 { text-indent: 0.25in; 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.s2073624000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073624SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073624SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073624Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-404"><span class="s2073624SENU">57A-8-404</span></a><span xml:space="preserve" class="s2073624SENU">. </span><span class="s2073624CL">Wrongful registration.</span></p><p dir="ltr" class="s2073624Normal-000000"><span xml:space="preserve" class="s2073624DefaultParagraphFont">(a) Except as otherwise provided in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-406"><span class="s2073624DefaultParagraphFont">57A-8-406</span></a><span class="s2073624DefaultParagraphFont">, an issuer is liable for wrongful registration of transfer if the issuer has registered a transfer of a security to a person not entitled to it, and the transfer was registered:</span></p><p dir="ltr" class="s2073624Normal-000001"><span class="s2073624DefaultParagraphFont">(1)    Pursuant to an ineffective indorsement or instruction;</span></p><p dir="ltr" class="s2073624Normal-000001"><span class="s2073624DefaultParagraphFont">(2)    After a demand that the issuer not register transfer became effective under § 57A-8-403(a) and the issuer did not comply with § 57A-8-403(b);</span></p><p dir="ltr" class="s2073624Normal-000001"><span class="s2073624DefaultParagraphFont">(3)    After the issuer had been served with an injunction, restraining order, or other legal process enjoining it from registering the transfer, issued by a court of competent jurisdiction, and the issuer had a reasonable opportunity to act on the injunction, restraining order, or other legal process; or</span></p><p dir="ltr" class="s2073624Normal-000001"><span class="s2073624DefaultParagraphFont">(4)    By an issuer acting in collusion with the wrongdoer.</span></p><p dir="ltr" class="s2073624Normal-000002"><span xml:space="preserve" class="s2073624DefaultParagraphFont">(b) An issuer that is liable for wrongful registration of transfer under subsection (a) on demand shall provide the person entitled to the security with a like certificated or uncertificated security, and any payments or distributions that the person did not receive as a result of the wrongful registration. If an overissue would result, the issuer's liability to provide the person with a like security is governed by § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-210"><span class="s2073624DefaultParagraphFont">57A-8-210</span></a><span class="s2073624DefaultParagraphFont">.</span></p><p dir="ltr" class="s2073624Normal-000002"><span class="s2073624DefaultParagraphFont">(c) Except as otherwise provided in subsection (a) or in a law relating to the collection of taxes, an issuer is not liable to an owner or other person suffering loss as a result of the registration of a transfer of a security if registration was made pursuant to an effective indorsement or instruction.</span></p><p dir="ltr" class="s2073624Normal"><span xml:space="preserve" class="s2073624000003"> </span></p><p dir="ltr" class="s2073624Normal"><span class="s2073624SCL">Source:</span><span xml:space="preserve" class="s2073624SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073625Normal { 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.s2073625SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073625CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073625Normal-000000 { 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.s2073625DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073625Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073625Normal-000002 { text-indent: 0.25in; 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.s2073625000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073625SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073625SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073625Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-405"><span class="s2073625SENU">57A-8-405</span></a><span xml:space="preserve" class="s2073625SENU">. </span><span class="s2073625CL">Replacement of lost, destroyed, or wrongfully taken security certificate.</span></p><p dir="ltr" class="s2073625Normal-000000"><span class="s2073625DefaultParagraphFont">(a) If an owner of a certificated security, whether in registered or bearer form, claims that the certificate has been lost, destroyed, or wrongfully taken, the issuer shall issue a new certificate if the owner:</span></p><p dir="ltr" class="s2073625Normal-000001"><span class="s2073625DefaultParagraphFont">(1)    So requests before the issuer has notice that the certificate has been acquired by a protected purchaser;</span></p><p dir="ltr" class="s2073625Normal-000001"><span class="s2073625DefaultParagraphFont">(2)    Files with the issuer a sufficient indemnity bond; and</span></p><p dir="ltr" class="s2073625Normal-000001"><span class="s2073625DefaultParagraphFont">(3)    Satisfies other reasonable requirements imposed by the issuer.</span></p><p dir="ltr" class="s2073625Normal-000002"><span xml:space="preserve" class="s2073625DefaultParagraphFont">(b) If, after the issue of a new security certificate, a protected purchaser of the original certificate presents it for registration of transfer, the issuer shall register the transfer unless an overissue would result. In that case, the issuer's liability is governed by § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-210"><span class="s2073625DefaultParagraphFont">57A-8-210</span></a><span class="s2073625DefaultParagraphFont">. In addition to any rights on the indemnity bond, an issuer may recover the new certificate from a person to whom it was issued or any person taking under that person, except a protected purchaser.</span></p><p dir="ltr" class="s2073625Normal"><span xml:space="preserve" class="s2073625000003"> </span></p><p dir="ltr" class="s2073625Normal"><span class="s2073625SCL">Source:</span><span xml:space="preserve" class="s2073625SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073626Normal { 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.s2073626SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073626CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073626Normal-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.s2073626DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073626000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073626SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073626SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073626Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-406"><span class="s2073626SENU">57A-8-406</span></a><span xml:space="preserve" class="s2073626SENU">. </span><span class="s2073626CL">Obligation to notify issuer of lost, destroyed, or wrongfully taken security certificate.</span></p><p dir="ltr" class="s2073626Normal-000000"><span xml:space="preserve" class="s2073626DefaultParagraphFont">If a security certificate has been lost, apparently destroyed, or wrongfully taken, and the owner fails to notify the issuer of that fact within a reasonable time after the owner has notice of it and the issuer registers a transfer of the security before receiving notification, the owner may not assert against the issuer a claim for registering the transfer under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-404"><span class="s2073626DefaultParagraphFont">57A-8-404</span></a><span xml:space="preserve" class="s2073626DefaultParagraphFont"> or a claim to a new security certificate under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-405"><span class="s2073626DefaultParagraphFont">57A-8-405</span></a><span class="s2073626DefaultParagraphFont">.</span></p><p dir="ltr" class="s2073626Normal"><span xml:space="preserve" class="s2073626000001"> </span></p><p dir="ltr" class="s2073626Normal"><span class="s2073626SCL">Source:</span><span xml:space="preserve" class="s2073626SCL-000002"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073627Normal { 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.s2073627SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073627CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073627Normal-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.s2073627DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073627000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073627SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073627SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073627Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-407"><span class="s2073627SENU">57A-8-407</span></a><span xml:space="preserve" class="s2073627SENU">. </span><span class="s2073627CL">Authenticating trustee, transfer agent, and registrar.</span></p><p dir="ltr" class="s2073627Normal-000000"><span class="s2073627DefaultParagraphFont">A person acting as authenticating trustee, transfer agent, registrar, or other agent for an issuer in the registration of a transfer of its securities, in the issue of new security certificates or uncertificated securities, or in the cancellation of surrendered security certificates has the same obligation to the holder or owner of a certificated or uncertificated security with regard to the particular functions performed as the issuer has in regard to those functions.</span></p><p dir="ltr" class="s2073627Normal"><span xml:space="preserve" class="s2073627000001"> </span></p><p dir="ltr" class="s2073627Normal"><span class="s2073627SCL">Source:</span><span xml:space="preserve" class="s2073627SCL-000002"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /> <HTML> <HEAD> <HTML> <HEAD> <meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-8 - INVESTMENT SECURITIES57A-8-408 </title> <META NAME="Keywords" Content="South Dakota Codified Laws SDCL 57A-8-408 "> <META NAME="Description" Content="South Dakota Codified Laws 57A-8-408"> </HEAD> <BODY> <!-- File converted by Wp2Html Version 4.0 --> <!-- Email Andrew@brackenbeds.co.uk for more details --> <!-- WP Style Open: System_34 --><!-- WP Style End: System_34 --> <Div align="full"> <!-- WP Paired Style On: SENU -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: SENU --> 57A-8-408. <!-- WP Paired Style Off: SENU -->&nbsp;<!-- WP Style End: SENU --> Repealed by SL 1998, ch 284, &#167;&nbsp;1<p> </BODY> </HTML> <br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073629Normal { 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.s2073629SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073629CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073629Normal-000000 { 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.s2073629DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073629Normal-000001 { text-indent: 0.25in; 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; } p.s2073629Normal-000002 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073629000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073629SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073629SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073629Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-501"><span class="s2073629SENU">57A-8-501</span></a><span xml:space="preserve" class="s2073629SENU">. </span><span class="s2073629CL">Securities account; acquisition of security entitlement from securities intermediary.</span></p><p dir="ltr" class="s2073629Normal-000000"><span class="s2073629DefaultParagraphFont">(a) "Securities account" means an account to which a financial asset is or may be credited in accordance with an agreement under which the person maintaining the account undertakes to treat the person for whom the account is maintained as entitled to exercise the rights that comprise the financial asset.</span></p><p dir="ltr" class="s2073629Normal-000001"><span class="s2073629DefaultParagraphFont">(b) Except as otherwise provided in subsections (d) and (e), a person acquires a security entitlement if a securities intermediary:</span></p><p dir="ltr" class="s2073629Normal-000002"><span class="s2073629DefaultParagraphFont">(1)    Indicates by book entry that a financial asset has been credited to the person's securities account;</span></p><p dir="ltr" class="s2073629Normal-000002"><span class="s2073629DefaultParagraphFont">(2)    Receives a financial asset from the person or acquires a financial asset for the person and, in either case, accepts it for credit to the person's securities account; or</span></p><p dir="ltr" class="s2073629Normal-000002"><span class="s2073629DefaultParagraphFont">(3)    Becomes obligated under other law, regulation, or rule to credit a financial asset to the person's securities account.</span></p><p dir="ltr" class="s2073629Normal-000001"><span class="s2073629DefaultParagraphFont">(c) If a condition of subsection (b) has been met, a person has a security entitlement even though the securities intermediary does not itself hold the financial asset.</span></p><p dir="ltr" class="s2073629Normal-000001"><span class="s2073629DefaultParagraphFont">(d) If a securities intermediary holds a financial asset for another person, and the financial asset is registered in the name of, payable to the order of, or specially indorsed to the other person, and has not been indorsed to the securities intermediary or in blank, the other person is treated as holding the financial asset directly rather than as having a security entitlement with respect to the financial asset.</span></p><p dir="ltr" class="s2073629Normal-000001"><span class="s2073629DefaultParagraphFont">(e) Issuance of a security is not establishment of a security entitlement.</span></p><p dir="ltr" class="s2073629Normal"><span xml:space="preserve" class="s2073629000003"> </span></p><p dir="ltr" class="s2073629Normal"><span class="s2073629SCL">Source:</span><span xml:space="preserve" class="s2073629SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073630Normal { 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.s2073630SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073630CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073630Normal-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.s2073630DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073630000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073630SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073630SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073630Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-502"><span class="s2073630SENU">57A-8-502</span></a><span xml:space="preserve" class="s2073630SENU">. </span><span class="s2073630CL">Assertion of adverse claim against entitlement holder.</span></p><p dir="ltr" class="s2073630Normal-000000"><span xml:space="preserve" class="s2073630DefaultParagraphFont">An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who acquires a security entitlement under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-501"><span class="s2073630DefaultParagraphFont">57A-8-501</span></a><span xml:space="preserve" class="s2073630DefaultParagraphFont"> for value and without notice of the adverse claim.</span></p><p dir="ltr" class="s2073630Normal"><span xml:space="preserve" class="s2073630000001"> </span></p><p dir="ltr" class="s2073630Normal"><span class="s2073630SCL">Source:</span><span xml:space="preserve" class="s2073630SCL-000002"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073631Normal { 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.s2073631SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073631CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073631Normal-000000 { 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.s2073631DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073631Normal-000001 { text-indent: 0.25in; 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; } p.s2073631Normal-000002 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073631000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073631SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073631SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073631Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-503"><span class="s2073631SENU">57A-8-503</span></a><span xml:space="preserve" class="s2073631SENU">. </span><span class="s2073631CL">Property interest of entitlement holder in financial asset held by securities intermediary.</span></p><p dir="ltr" class="s2073631Normal-000000"><span xml:space="preserve" class="s2073631DefaultParagraphFont">(a) To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of creditors of the securities intermediary, except as otherwise provided in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-511"><span class="s2073631DefaultParagraphFont">57A-8-511</span></a><span class="s2073631DefaultParagraphFont">.</span></p><p dir="ltr" class="s2073631Normal-000001"><span class="s2073631DefaultParagraphFont">(b) An entitlement holder's property interest with respect to a particular financial asset under subsection (a) is a pro rata property interest in all interests in that financial asset held by the securities intermediary, without regard to the time the entitlement holder acquired the security entitlement or the time the securities intermediary acquired the interest in that financial asset.</span></p><p dir="ltr" class="s2073631Normal-000001"><span xml:space="preserve" class="s2073631DefaultParagraphFont">(c) An entitlement holder's property interest with respect to a particular financial asset under subsection (a) may be enforced against the securities intermediary only by exercise of the entitlement holder's rights under §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-505"><span class="s2073631DefaultParagraphFont">57A-8-505</span></a><span xml:space="preserve" class="s2073631DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-508"><span class="s2073631DefaultParagraphFont">57A-8-508</span></a><span class="s2073631DefaultParagraphFont">, inclusive.</span></p><p dir="ltr" class="s2073631Normal-000001"><span class="s2073631DefaultParagraphFont">(d) An entitlement holder's property interest with respect to a particular financial asset under subsection (a) may be enforced against a purchaser of the financial asset or interest therein only if:</span></p><p dir="ltr" class="s2073631Normal-000002"><span class="s2073631DefaultParagraphFont">(1)    Insolvency proceedings have been initiated by or against the securities intermediary;</span></p><p dir="ltr" class="s2073631Normal-000002"><span class="s2073631DefaultParagraphFont">(2)    The securities intermediary does not have sufficient interests in the financial asset to satisfy the security entitlements of all of its entitlement holders to that financial asset;</span></p><p dir="ltr" class="s2073631Normal-000002"><span xml:space="preserve" class="s2073631DefaultParagraphFont">(3)    The securities intermediary violated its obligations under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-504"><span class="s2073631DefaultParagraphFont">57A-8-504</span></a><span xml:space="preserve" class="s2073631DefaultParagraphFont"> by transferring the financial asset or interest therein to the purchaser; and</span></p><p dir="ltr" class="s2073631Normal-000002"><span class="s2073631DefaultParagraphFont">(4)    The purchaser is not protected under subsection (e).</span></p><p dir="ltr" class="s2073631Normal-000001"><span class="s2073631DefaultParagraphFont">The trustee or other liquidator, acting on behalf of all entitlement holders having security entitlements with respect to a particular financial asset, may recover the financial asset, or interest therein, from the purchaser. If the trustee or other liquidator elects not to pursue that right, an entitlement holder whose security entitlement remains unsatisfied has the right to recover its interest in the financial asset from the purchaser.</span></p><p dir="ltr" class="s2073631Normal-000001"><span xml:space="preserve" class="s2073631DefaultParagraphFont">(e) An action based on the entitlement holder's property interest with respect to a particular financial asset under subsection (a), whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against any purchaser of a financial asset or interest therein who gives value, obtains control, and does not act in collusion with the securities intermediary in violating the securities intermediary's obligations under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-504"><span class="s2073631DefaultParagraphFont">57A-8-504</span></a><span class="s2073631DefaultParagraphFont">.</span></p><p dir="ltr" class="s2073631Normal"><span xml:space="preserve" class="s2073631000003"> </span></p><p dir="ltr" class="s2073631Normal"><span class="s2073631SCL">Source:</span><span xml:space="preserve" class="s2073631SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073632Normal { 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.s2073632SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073632CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073632Normal-000000 { 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.s2073632DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073632Normal-000001 { text-indent: 0.25in; 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; } p.s2073632Normal-000002 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073632000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073632SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073632SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073632Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-504"><span class="s2073632SENU">57A-8-504</span></a><span xml:space="preserve" class="s2073632SENU">. </span><span class="s2073632CL">Duty of securities intermediary to maintain financial asset.</span></p><p dir="ltr" class="s2073632Normal-000000"><span class="s2073632DefaultParagraphFont">(a) A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities intermediary may maintain those financial assets directly or through one or more other securities intermediaries.</span></p><p dir="ltr" class="s2073632Normal-000001"><span class="s2073632DefaultParagraphFont">(b) Except to the extent otherwise agreed by its entitlement holder, a securities intermediary may not grant any security interests in a financial asset it is obligated to maintain pursuant to subsection (a).</span></p><p dir="ltr" class="s2073632Normal-000001"><span class="s2073632DefaultParagraphFont">(c) A securities intermediary satisfies the duty in subsection (a) if:</span></p><p dir="ltr" class="s2073632Normal-000002"><span class="s2073632DefaultParagraphFont">(1)    The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or</span></p><p dir="ltr" class="s2073632Normal-000002"><span class="s2073632DefaultParagraphFont">(2)    In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to obtain and maintain the financial asset.</span></p><p dir="ltr" class="s2073632Normal-000001"><span class="s2073632DefaultParagraphFont">(d) This section does not apply to a clearing corporation that is itself the obligor of an option or similar obligation to which its entitlement holders have security entitlements.</span></p><p dir="ltr" class="s2073632Normal"><span xml:space="preserve" class="s2073632000003"> </span></p><p dir="ltr" class="s2073632Normal"><span class="s2073632SCL">Source:</span><span xml:space="preserve" class="s2073632SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073633Normal { 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.s2073633SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073633CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073633Normal-000000 { 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.s2073633DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073633Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073633Normal-000002 { text-indent: 0.25in; 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.s2073633000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073633SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073633SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073633Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-505"><span class="s2073633SENU">57A-8-505</span></a><span xml:space="preserve" class="s2073633SENU">. </span><span class="s2073633CL">Duty of securities intermediary with respect to payments and distributions.</span></p><p dir="ltr" class="s2073633Normal-000000"><span class="s2073633DefaultParagraphFont">(a) A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if:</span></p><p dir="ltr" class="s2073633Normal-000001"><span class="s2073633DefaultParagraphFont">(1)    The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or</span></p><p dir="ltr" class="s2073633Normal-000001"><span class="s2073633DefaultParagraphFont">(2)    In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to attempt to obtain the payment or distribution.</span></p><p dir="ltr" class="s2073633Normal-000002"><span class="s2073633DefaultParagraphFont">(b) A securities intermediary is obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset if the payment or distribution is received by the securities intermediary.</span></p><p dir="ltr" class="s2073633Normal"><span xml:space="preserve" class="s2073633000003"> </span></p><p dir="ltr" class="s2073633Normal"><span class="s2073633SCL">Source:</span><span xml:space="preserve" class="s2073633SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073634Normal { 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.s2073634SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073634CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073634Normal-000000 { 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.s2073634DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073634Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073634000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073634SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073634SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073634Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-506"><span class="s2073634SENU">57A-8-506</span></a><span xml:space="preserve" class="s2073634SENU">. </span><span class="s2073634CL">Duty of securities intermediary to exercise rights as directed by entitlement holder.</span></p><p dir="ltr" class="s2073634Normal-000000"><span class="s2073634DefaultParagraphFont">A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary satisfies the duty if:</span></p><p dir="ltr" class="s2073634Normal-000001"><span class="s2073634DefaultParagraphFont">(1)    The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or</span></p><p dir="ltr" class="s2073634Normal-000001"><span class="s2073634DefaultParagraphFont">(2)    In the absence of agreement, the securities intermediary either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.</span></p><p dir="ltr" class="s2073634Normal"><span xml:space="preserve" class="s2073634000002"> </span></p><p dir="ltr" class="s2073634Normal"><span class="s2073634SCL">Source:</span><span xml:space="preserve" class="s2073634SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073635Normal { 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.s2073635SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073635CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073635Normal-000000 { 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.s2073635DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073635Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073635Normal-000002 { text-indent: 0.25in; 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.s2073635000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073635SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073635SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073635Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-507"><span class="s2073635SENU">57A-8-507</span></a><span xml:space="preserve" class="s2073635SENU">. </span><span class="s2073635CL">Duty of securities intermediary to comply with entitlement order.</span></p><p dir="ltr" class="s2073635Normal-000000"><span class="s2073635DefaultParagraphFont">(a) A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had reasonable opportunity to assure itself that the entitlement order is genuine and authorized, and the securities intermediary has had reasonable opportunity to comply with the entitlement order. A securities intermediary satisfies the duty if:</span></p><p dir="ltr" class="s2073635Normal-000001"><span class="s2073635DefaultParagraphFont">(1)    The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or</span></p><p dir="ltr" class="s2073635Normal-000001"><span class="s2073635DefaultParagraphFont">(2)    In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to comply with the entitlement order.</span></p><p dir="ltr" class="s2073635Normal-000002"><span class="s2073635DefaultParagraphFont">(b) If a securities intermediary transfers a financial asset pursuant to an ineffective entitlement order, the securities intermediary shall reestablish a security entitlement in favor of the person entitled to it, and pay or credit any payments or distributions that the person did not receive as a result of the wrongful transfer. If the securities intermediary does not reestablish a security entitlement, the securities intermediary is liable to the entitlement holder for damages.</span></p><p dir="ltr" class="s2073635Normal"><span xml:space="preserve" class="s2073635000003"> </span></p><p dir="ltr" class="s2073635Normal"><span class="s2073635SCL">Source:</span><span xml:space="preserve" class="s2073635SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073636Normal { 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.s2073636SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073636CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073636Normal-000000 { 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.s2073636DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073636Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073636000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073636SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073636SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073636Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-508"><span class="s2073636SENU">57A-8-508</span></a><span xml:space="preserve" class="s2073636SENU">. </span><span class="s2073636CL">Duty of securities intermediary to change entitlement holder's position to other form of security holding.</span></p><p dir="ltr" class="s2073636Normal-000000"><span class="s2073636DefaultParagraphFont">A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which the entitlement holder is eligible, or to cause the financial asset to be transferred to a securities account of the entitlement holder with another securities intermediary. A securities intermediary satisfies the duty if:</span></p><p dir="ltr" class="s2073636Normal-000001"><span class="s2073636DefaultParagraphFont">(1)    The securities intermediary acts as agreed upon by the entitlement holder and the securities intermediary; or</span></p><p dir="ltr" class="s2073636Normal-000001"><span class="s2073636DefaultParagraphFont">(2)    In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.</span></p><p dir="ltr" class="s2073636Normal"><span xml:space="preserve" class="s2073636000002"> </span></p><p dir="ltr" class="s2073636Normal"><span class="s2073636SCL">Source:</span><span xml:space="preserve" class="s2073636SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073637Normal { 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.s2073637SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073637CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073637Normal-000000 { 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.s2073637DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073637Normal-000001 { text-indent: 0.25in; 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; } p.s2073637Normal-000002 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073637000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073637SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073637SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073637Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-509"><span class="s2073637SENU">57A-8-509</span></a><span xml:space="preserve" class="s2073637SENU">. </span><span class="s2073637CL">Specification of duties of securities intermediary by other statute or regulation; Manner of performance of duties of securities intermediary and exercise of rights of entitlement holder.</span></p><p dir="ltr" class="s2073637Normal-000000"><span xml:space="preserve" class="s2073637DefaultParagraphFont">(a) If the substance of a duty imposed upon a securities intermediary by §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-504"><span class="s2073637DefaultParagraphFont">57A-8-504</span></a><span xml:space="preserve" class="s2073637DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-508"><span class="s2073637DefaultParagraphFont">57A-8-508</span></a><span class="s2073637DefaultParagraphFont">, inclusive, is the subject of other statute, regulation, or rule, compliance with that statute, regulation, or rule satisfies the duty.</span></p><p dir="ltr" class="s2073637Normal-000001"><span class="s2073637DefaultParagraphFont">(b) To the extent that specific standards for the performance of the duties of a securities intermediary or the exercise of the rights of an entitlement holder are not specified by other statute, regulation, or rule or by agreement between the securities intermediary and entitlement holder, the securities intermediary shall perform its duties and the entitlement holder shall exercise its rights in a commercially reasonable manner.</span></p><p dir="ltr" class="s2073637Normal-000001"><span xml:space="preserve" class="s2073637DefaultParagraphFont">(c) The obligation of a securities intermediary to perform the duties imposed by §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-504"><span class="s2073637DefaultParagraphFont">57A-8-504</span></a><span xml:space="preserve" class="s2073637DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-508"><span class="s2073637DefaultParagraphFont">57A-8-508</span></a><span class="s2073637DefaultParagraphFont">, inclusive, is subject to:</span></p><p dir="ltr" class="s2073637Normal-000002"><span class="s2073637DefaultParagraphFont">(1)    Rights of the securities intermediary arising out of a security interest under a security agreement with the entitlement holder or otherwise; and</span></p><p dir="ltr" class="s2073637Normal-000002"><span class="s2073637DefaultParagraphFont">(2)    Rights of the securities intermediary under other law, regulation, rule, or agreement to withhold performance of its duties as a result of unfulfilled obligations of the entitlement holder to the securities intermediary.</span></p><p dir="ltr" class="s2073637Normal-000001"><span xml:space="preserve" class="s2073637DefaultParagraphFont">(d) Sections </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-504"><span class="s2073637DefaultParagraphFont">57A-8-504</span></a><span xml:space="preserve" class="s2073637DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-508"><span class="s2073637DefaultParagraphFont">57A-8-508</span></a><span class="s2073637DefaultParagraphFont">, inclusive, do not require a securities intermediary to take any action that is prohibited by other statute, regulation, or rule.</span></p><p dir="ltr" class="s2073637Normal"><span xml:space="preserve" class="s2073637000003"> </span></p><p dir="ltr" class="s2073637Normal"><span class="s2073637SCL">Source:</span><span xml:space="preserve" class="s2073637SCL-000004"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073638Normal { 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.s2073638SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073638CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073638Normal-000000 { 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.s2073638DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073638Normal-000001 { text-indent: 0.25in; 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; } p.s2073638Normal-000002 { margin-left: 0.70in; text-indent: -0.45in; 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.s2073638000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073638SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073638SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073638Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-510"><span class="s2073638SENU">57A-8-510</span></a><span xml:space="preserve" class="s2073638SENU">. </span><span class="s2073638CL">Rights of purchaser of security entitlement from entitlement holder.</span></p><p dir="ltr" class="s2073638Normal-000000"><span class="s2073638DefaultParagraphFont">(a) In a case not covered by the priority rules in Article 9 or the rules stated in subsection (c), an action based on an adverse claim to a financial asset or security entitlement, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who purchases a security entitlement, or an interest therein, from an entitlement holder if the purchaser gives value, does not have notice of the adverse claim, and obtains control.</span></p><p dir="ltr" class="s2073638Normal-000001"><span xml:space="preserve" class="s2073638DefaultParagraphFont">(b) If an adverse claim could not have been asserted against an entitlement holder under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-502"><span class="s2073638DefaultParagraphFont">57A-8-502</span></a><span class="s2073638DefaultParagraphFont">, the adverse claim cannot be asserted against a person who purchases a security entitlement, or an interest therein, from the entitlement holder.</span></p><p dir="ltr" class="s2073638Normal-000001"><span xml:space="preserve" class="s2073638DefaultParagraphFont">(c) In a case not covered by the priority rules in chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9"><span class="s2073638DefaultParagraphFont">57A-9</span></a><span class="s2073638DefaultParagraphFont">, a purchaser for value of a security entitlement, or an interest therein, who obtains control has priority over a purchaser of a security entitlement, or an interest therein, who does not obtain control. Except as otherwise provided in subsection (d), purchasers who have control rank according to priority in time of:</span></p><p dir="ltr" class="s2073638Normal-000002"><span class="s2073638DefaultParagraphFont">(1)    The purchaser's becoming the person for whom the securities account, in which the security entitlement is carried, is maintained, if the purchaser obtained control under § 57A-8-106(d)(1);</span></p><p dir="ltr" class="s2073638Normal-000002"><span class="s2073638DefaultParagraphFont">(2)    The securities intermediary's agreement to comply with the purchaser's entitlement orders with respect to security entitlements carried or to be carried in the securities account in which the security entitlement is carried, if the purchaser obtained control under § 57A-8-106(d)(2); or</span></p><p dir="ltr" class="s2073638Normal-000002"><span class="s2073638DefaultParagraphFont">(3)    If the purchaser obtained control through another person under § 57A-8-106(d)(3), the time on which priority would be based under this subsection if the other person were the secured party.</span></p><p dir="ltr" class="s2073638Normal-000001"><span class="s2073638DefaultParagraphFont">(d) A securities intermediary as purchaser has priority over a conflicting purchaser who has control unless otherwise agreed by the securities intermediary.</span></p><p dir="ltr" class="s2073638Normal"><span xml:space="preserve" class="s2073638000003"> </span></p><p dir="ltr" class="s2073638Normal"><span class="s2073638SCL">Source:</span><span xml:space="preserve" class="s2073638SCL-000004"> SL 1998, ch 284, § 1; SL 2000, ch 231, § 19.</span></p></div></body></html><br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073639Normal { 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.s2073639SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073639CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073639Normal-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.s2073639DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073639Normal-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; } span.s2073639000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073639SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073639SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2073639Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-511"><span class="s2073639SENU">57A-8-511</span></a><span xml:space="preserve" class="s2073639SENU">. </span><span class="s2073639CL">Priority among security interests and entitlement holders.</span></p><p dir="ltr" class="s2073639Normal-000000"><span class="s2073639DefaultParagraphFont">(a) Except as otherwise provided in subsections (b) and (c), if a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations to entitlement holders who have security entitlements to that financial asset and its obligation to a creditor of the securities intermediary who has a security interest in that financial asset, the claims of entitlement holders, other than the creditor, have priority over the claim of the creditor.</span></p><p dir="ltr" class="s2073639Normal-000001"><span class="s2073639DefaultParagraphFont">(b) A claim of a creditor of a securities intermediary who has a security interest in a financial asset held by a securities intermediary has priority over claims of the securities intermediary's entitlement holders who have security entitlements with respect to that financial asset if the creditor has control over the financial asset.</span></p><p dir="ltr" class="s2073639Normal-000001"><span class="s2073639DefaultParagraphFont">(c) If a clearing corporation does not have sufficient financial assets to satisfy both its obligations to entitlement holders who have security entitlements with respect to a financial asset and its obligation to a creditor of the clearing corporation who has a security interest in that financial asset, the claim of the creditor has priority over the claims of entitlement holders.</span></p><p dir="ltr" class="s2073639Normal"><span xml:space="preserve" class="s2073639000002"> </span></p><p dir="ltr" class="s2073639Normal"><span class="s2073639SCL">Source:</span><span xml:space="preserve" class="s2073639SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html><br /><hr><br /> <HTML> <HEAD> <HTML> <HEAD> <meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-8 - INVESTMENT SECURITIES57A-8-601 </title> <META NAME="Keywords" Content="South Dakota Codified Laws SDCL 57A-8-601 "> <META NAME="Description" Content="South Dakota Codified Laws 57A-8-601"> </HEAD> <BODY> <!-- File converted by Wp2Html Version 4.0 --> <!-- Email Andrew@brackenbeds.co.uk for more details --> <!-- WP Style Open: System_34 --><!-- WP Style End: System_34 --> <Div align="full"> <!-- WP Paired Style On: SENU -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: SENU --> 57A-8-601, 57A-8-602. <!-- WP Paired Style Off: SENU -->&nbsp;<!-- WP Style End: SENU --> Reserved<p> </BODY> </HTML> <br /><hr><br /><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-8 - INVESTMENT SECURITIES</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073641Normal { 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.s2073641SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073641CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073641Normal-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.s2073641DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073641Normal-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; } span.s2073641000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073641SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073641SCL-000003 { 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="s2073641Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-8-603"><span class="s2073641SENU">57A-8-603</span></a><span xml:space="preserve" class="s2073641SENU">. </span><span class="s2073641CL">Savings clause.</span></p><p dir="ltr" class="s2073641Normal-000000"><span class="s2073641DefaultParagraphFont">(a) This chapter does not affect an action or proceeding commenced before this chapter takes effect.</span></p><p dir="ltr" class="s2073641Normal-000001"><span class="s2073641DefaultParagraphFont">(b) If a security interest in a security is perfected at the date this chapter takes effect, and the action by which the security interest was perfected would suffice to perfect a security interest under this chapter, no further action is required to continue perfection. If a security interest in a security is perfected at the date this chapter takes effect but the action by which the security interest was perfected would not suffice to perfect a security interest under this chapter, the security interest remains perfected for a period of four months after the effective date and continues perfected thereafter if appropriate action to perfect under this chapter is taken within that period. If a security interest is perfected at the date this chapter takes effect and the security interest can be perfected by filing under this chapter, a financing statement signed by the secured party instead of the debtor may be filed within that period to continue perfection or thereafter to perfect.</span></p><p dir="ltr" class="s2073641Normal"><span xml:space="preserve" class="s2073641000002"> </span></p><p dir="ltr" class="s2073641Normal"><span class="s2073641SCL">Source:</span><span xml:space="preserve" class="s2073641SCL-000003"> SL 1998, ch 284, § 1.</span></p></div></body></html>