<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-9-317 - Interests that take priority over or take free of security interests or agricultural lien.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s3b817ae3597c4c41950ef4c58aac6f13Normal { 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.s3b817ae3597c4c41950ef4c58aac6f13SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s3b817ae3597c4c41950ef4c58aac6f13CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s3b817ae3597c4c41950ef4c58aac6f13Statute { text-indent: 0.50in; 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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.s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s3b817ae3597c4c41950ef4c58aac6f13SCL { 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-9-317 - Interests that take priority over or take free of security interests or agricultural lien."><meta property="og:description" content="SDLRC Codified Law 57A-9-317 - Interests that take priority over or take free of security interests or agricultural lien."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/57A-9-317"><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="s3b817ae3597c4c41950ef4c58aac6f13Normal"><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-317" rel="noopener"><span class="s3b817ae3597c4c41950ef4c58aac6f13SENU">57A-9-317</span></a><span xml:space="preserve" class="s3b817ae3597c4c41950ef4c58aac6f13SENU">. </span><span xml:space="preserve" class="s3b817ae3597c4c41950ef4c58aac6f13CL">Interests that take priority over or take free of security interests or agricultural lien. </span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13Statute"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(a) A security interest or agricultural lien is subordinate to the rights of:</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13StatuteNumber1"><span xml:space="preserve" class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(1)    A person entitled to priority under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-322" rel="noopener"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">57A-9-322</span></a><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">; and</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13StatuteNumber1"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(2)    Except as otherwise provided in subsection (e), a person that becomes a lien creditor before the earlier of the time:</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13StatuteNumber2"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(A)    The security interest or agricultural lien is perfected; or</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13StatuteNumber2"><span xml:space="preserve" class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(B)    One of the conditions specified in § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-203" rel="noopener"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">57A-9-203</span></a><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(b)(3) is met and a financing statement covering the collateral is filed.</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13Statute"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(b) Except as otherwise provided in subsection (e), a buyer, other than a secured party, of goods, instruments, tangible documents, or a certified security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13Statute"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(c) Except as otherwise provided in subsection (e), a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13Statute"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(d) Subject to subsections (f) through (i), a licensee of a general intangible or a buyer, other than a secured party, of collateral other than electronic money, goods, instruments, tangible documents, or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13Statute"><span xml:space="preserve" class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(e) Except as otherwise provided in § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-320" rel="noopener"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">57A-9-320</span></a><span xml:space="preserve" class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont"> and </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-321" rel="noopener"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">57A-9-321</span></a><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">, if a person files a financing statement with respect to a purchase-money security interest before or within 20 days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor which arise between the time the security interest attaches and the time of filing.</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13Statute"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(f) A buyer, other than a secured party, of chattel paper takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and:</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13StatuteNumber1"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(1)    Receives delivery of each authoritative tangible copy of the record evidencing the chattel paper; and</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13StatuteNumber1"><span xml:space="preserve" class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(2)    If each authoritative electronic copy of the record evidencing the chattel paper can be subjected to control under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9-105" rel="noopener"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">57A-9-105</span></a><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">, obtains control of each authoritative electronic copy.</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13Statute"><span xml:space="preserve" class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(g) A buyer of an electronic document takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and, if each authoritative electronic copy of the document can be subjected to control under § </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-7-106" rel="noopener"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">57A-7-106</span></a><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">, obtains control of each authoritative electronic copy.</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13Statute"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(h) A buyer of a controllable electronic record takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and obtains control of each controllable electronic record.</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13Statute"><span class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont">(i) A buyer, other than a secured party, of a controllable account or a controllable payment intangible takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and obtains control of the controllable account or controllable payment intangible.</span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13Normal"><span xml:space="preserve" class="s3b817ae3597c4c41950ef4c58aac6f13000000"> </span></p><p dir="ltr" class="s3b817ae3597c4c41950ef4c58aac6f13NoIndent"><span xml:space="preserve" class="s3b817ae3597c4c41950ef4c58aac6f13DefaultParagraphFont-000001">Source: </span><span class="s3b817ae3597c4c41950ef4c58aac6f13SCL">SL 2000, ch 231; SL 2009, ch 254, § 834; SL 2012, ch 238, § 6, eff. July 1, 2013; SL 2024, ch 198, § 66.</span></p></div></body></html>