<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-9-208 - Additional duties of secured party having control of collateral.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s53bf141d751f4931903813c9135f07b8Normal { 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.s53bf141d751f4931903813c9135f07b8SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s53bf141d751f4931903813c9135f07b8CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s53bf141d751f4931903813c9135f07b8Statute { text-indent: 0.50in; text-align: justify; 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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.s53bf141d751f4931903813c9135f07b8DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s53bf141d751f4931903813c9135f07b8SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 57A-9-208 - Additional duties of secured party having control of collateral."><meta property="og:description" content="SDLRC Codified Law 57A-9-208 - Additional duties of secured party having control of collateral."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-9-208"><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="s53bf141d751f4931903813c9135f07b8Normal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-208" rel="noopener"><span class="s53bf141d751f4931903813c9135f07b8SENU">57A-9-208</span></a><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8SENU">. </span><span class="s53bf141d751f4931903813c9135f07b8CL">Additional duties of secured party having control of collateral.</span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8Statute"><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(a) This section applies to cases in which there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations, or otherwise give value.</span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8Statute"><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(b) Within ten days after receiving a signed demand by the debtor:</span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8StatuteNumber1"><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(1)    A secured party having control of a deposit account under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-104" rel="noopener"><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">57A-9-104</span></a><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(a)(2) shall send to the bank with which the deposit account is maintained a signed record that releases the bank from any further obligation to comply with instructions originated by the secured party;</span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8StatuteNumber1"><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(2)    A secured party having control of a deposit account under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-104" rel="noopener"><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">57A-9-104</span></a><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(a)(3) shall:</span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8StatuteNumber2"><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(A)    Pay the debtor the balance on deposit in the deposit account; or</span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8StatuteNumber2"><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(B)    Transfer the balance on deposit into a deposit account in the debtor's name;</span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8StatuteNumber1"><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(3)    A secured party, other than a buyer, having control under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-105" rel="noopener"><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">57A-9-105</span></a><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont"> of an authoritative electronic copy of a record evidencing chattel paper shall transfer control of the electronic copy to the debtor or a person designated by the debtor;</span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8StatuteNumber1"><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(4)    A secured party having control of investment property under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-8-106" rel="noopener"><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">57A-8-106</span></a><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(d)(2) or </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-106" rel="noopener"><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">57A-9-106</span></a><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(b) shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained a signed record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party;</span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8StatuteNumber1"><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(5)    A secured party having control of a letter-of-credit right under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-107" rel="noopener"><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">57A-9-107</span></a><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont"> shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party a signed release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party; </span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8StatuteNumber1"><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(6)    A secured party having control under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-7-106" rel="noopener"><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">57A-7-106</span></a><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont"> of an authoritative electronic copy of an electronic document shall transfer control of the electronic copy to the debtor or a person designated by the debtor;</span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8StatuteNumber1"><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(7)    A secured party having control under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-105.1" rel="noopener"><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">57A-9-105.1</span></a><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont"> of electronic money shall transfer control of the electronic money to the debtor or a person designated by the debtor; and</span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8StatuteNumber1"><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">(8)    A secured party having control under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-105" rel="noopener"><span class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont">57A-12-105</span></a><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont"> of a controllable electronic record, other than a buyer of a controllable account or controllable payment intangible evidenced by the controllable electronic record, shall transfer control of the controllable electronic record to the debtor or a person designated by the debtor.</span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8Normal"><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8000000"> </span></p><p dir="ltr" class="s53bf141d751f4931903813c9135f07b8NoIndent"><span xml:space="preserve" class="s53bf141d751f4931903813c9135f07b8DefaultParagraphFont-000001">Source: </span><span class="s53bf141d751f4931903813c9135f07b8SCL">SL 2000, ch 231; SL 2009, ch 254, § 828; SL 2024, ch 198, § 52.</span></p></div></body></html>