<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-9-306.2 - Law governing perfection and priority of security interests in controllable accounts, controllable electronic records, and controllable payment intangibles.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.sf4494c0f2e3a4f48ac024e984e343df4Normal { 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.sf4494c0f2e3a4f48ac024e984e343df4SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sf4494c0f2e3a4f48ac024e984e343df4CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.sf4494c0f2e3a4f48ac024e984e343df4Statute { 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.sf4494c0f2e3a4f48ac024e984e343df4DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.sf4494c0f2e3a4f48ac024e984e343df4StatuteNumber1 { 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.sf4494c0f2e3a4f48ac024e984e343df4000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.sf4494c0f2e3a4f48ac024e984e343df4NoIndent { 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.sf4494c0f2e3a4f48ac024e984e343df4DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sf4494c0f2e3a4f48ac024e984e343df4SCL { 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-9-306.2 - Law governing perfection and priority of security interests in controllable accounts, controllable electronic records, and controllable payment intangibles."><meta property="og:description" content="SDLRC Codified Law 57A-9-306.2 - Law governing perfection and priority of security interests in controllable accounts, controllable electronic records, and controllable payment intangibles."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-9-306.2"><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="sf4494c0f2e3a4f48ac024e984e343df4Normal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-306.2" rel="noopener"><span class="sf4494c0f2e3a4f48ac024e984e343df4SENU">57A-9-306.2</span></a><span xml:space="preserve" class="sf4494c0f2e3a4f48ac024e984e343df4SENU">. </span><span class="sf4494c0f2e3a4f48ac024e984e343df4CL">Law governing perfection and priority of security interests in controllable accounts, controllable electronic records, and controllable payment intangibles.</span></p><p dir="ltr" class="sf4494c0f2e3a4f48ac024e984e343df4Statute"><span xml:space="preserve" class="sf4494c0f2e3a4f48ac024e984e343df4DefaultParagraphFont">(a) Except as provided in subsection (b), the local law of the controllable electronic record's jurisdiction specified in § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-12-107" rel="noopener"><span class="sf4494c0f2e3a4f48ac024e984e343df4DefaultParagraphFont">57A-12-107</span></a><span xml:space="preserve" class="sf4494c0f2e3a4f48ac024e984e343df4DefaultParagraphFont"> governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a controllable electronic record and a security interest in a controllable account or controllable payment intangible evidenced by the controllable electronic record.</span></p><p dir="ltr" class="sf4494c0f2e3a4f48ac024e984e343df4Statute"><span class="sf4494c0f2e3a4f48ac024e984e343df4DefaultParagraphFont">(b) The local law of the jurisdiction in which the debtor is located governs:</span></p><p dir="ltr" class="sf4494c0f2e3a4f48ac024e984e343df4StatuteNumber1"><span class="sf4494c0f2e3a4f48ac024e984e343df4DefaultParagraphFont">(1)    Perfection of a security interest in a controllable account, controllable electronic record, or controllable payment intangible by filing; and</span></p><p dir="ltr" class="sf4494c0f2e3a4f48ac024e984e343df4StatuteNumber1"><span class="sf4494c0f2e3a4f48ac024e984e343df4DefaultParagraphFont">(2)    Automatic perfection of a security interest in a controllable payment intangible created by a sale of the controllable payment intangible.</span></p><p dir="ltr" class="sf4494c0f2e3a4f48ac024e984e343df4Normal"><span xml:space="preserve" class="sf4494c0f2e3a4f48ac024e984e343df4000000"> </span></p><p dir="ltr" class="sf4494c0f2e3a4f48ac024e984e343df4NoIndent"><span xml:space="preserve" class="sf4494c0f2e3a4f48ac024e984e343df4DefaultParagraphFont-000001">Source: </span><span class="sf4494c0f2e3a4f48ac024e984e343df4SCL">SL 2024, ch 198, § 59.</span></p></div></body></html>