57A-9-314. Perfection by control.

(a) A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, investment property, or letter-of-credit rights may be perfected by control of the collateral under § 57A-7-106, 57A-9-104, 57A-9-105.1, 57A-9-106, 57A-9-107, or 57A-9-107.1.

(b) A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, or letter-of-credit rights is perfected by control under § 57A-7-106, 57A-9-104, 57A-9-105.1, 57A-9-107, or 57A-9-107.1 not earlier than the time the secured party obtains control and remains perfected by control only while the secured party retains control.

(c) A security interest in investment property is perfected by control under § 57A-9-106 not earlier than the time the secured party obtains control and remains perfected by control until:

(1)    The secured party does not have control; and

(2)    One of the following occurs:

(A)    If the collateral is a certificated security, the debtor has or acquires possession of the security certificate;

(B)    If the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner; or

(C)    If the collateral is a security entitlement, the debtor is or becomes the entitlement holder.

Source: SL 2000, ch 231; SL 2009, ch 254, § 833; SL 2024, ch 198, § 63.



SDLRC - Codified Law 57A-9-314 - Perfection by control.

57A-9-314.1. Perfection by possession and control of chattel paper.

(a) A secured party may perfect a security interest in chattel paper by taking possession of each authoritative tangible copy of the record evidencing the chattel paper and obtaining control of each authoritative electronic copy of the electronic record evidencing chattel paper.

(b) A security interest is perfected under subsection (a) not earlier than the time the secured party takes possession and obtains control and remains perfected under subsection (a) only while the secured party retains possession and control.

(c) Section 57A-9-313(c) and (f) through (i) applies to perfection by possession of an authoritative tangible copy of a record evidencing chattel paper.

Source: SL 2024, ch 198, § 64.