<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-9-322 - Priority among conflicting security interests and agricultural liens in same collateral. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073686Normal { 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.s2073686SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073686CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073686Normal-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.s2073686DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073686Normal-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.s2073686Normal-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.s2073686Normal-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.s2073686DefaultParagraphFont-000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073686000005 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073686SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073686SCL-000006 { 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="s2073686Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9-322"><span class="s2073686SENU">57A-9-322</span></a><span xml:space="preserve" class="s2073686SENU">. </span><span class="s2073686CL">Priority among conflicting security interests and agricultural liens in same collateral.</span></p><p dir="ltr" class="s2073686Normal-000000"><span class="s2073686DefaultParagraphFont">(a) Except as otherwise provided in this section, priority among conflicting security interests and agricultural liens in the same collateral is determined according to the following rules:</span></p><p dir="ltr" class="s2073686Normal-000001"><span class="s2073686DefaultParagraphFont">(1)    Conflicting perfected security interests and agricultural liens rank according to priority in time of filing or perfection. Priority dates from the earlier of the time a filing covering the collateral is first made or the security interest or agricultural lien is first perfected, if there is no period thereafter when there is neither filing nor perfection.</span></p><p dir="ltr" class="s2073686Normal-000001"><span class="s2073686DefaultParagraphFont">(2)    A perfected security interest or agricultural lien has priority over a conflicting unperfected security interest or agricultural lien.</span></p><p dir="ltr" class="s2073686Normal-000001"><span class="s2073686DefaultParagraphFont">(3)    The first security interest or agricultural lien to attach or become effective has priority if conflicting security interests and agricultural liens are unperfected.</span></p><p dir="ltr" class="s2073686Normal-000002"><span class="s2073686DefaultParagraphFont">(b) For the purposes of subsection (a)(1):</span></p><p dir="ltr" class="s2073686Normal-000001"><span class="s2073686DefaultParagraphFont">(1)    the time of filing or perfection as to a security interest in collateral is also the time of filing or perfection as to a security interest in proceeds; and</span></p><p dir="ltr" class="s2073686Normal-000001"><span class="s2073686DefaultParagraphFont">(2)    the time of filing or perfection as to a security interest in collateral supported by a supporting obligation is also the time of filing or perfection as to a security interest in the supporting obligation.</span></p><p dir="ltr" class="s2073686Normal-000002"><span xml:space="preserve" class="s2073686DefaultParagraphFont">(c) Except as otherwise provided in subsection (f), a security interest in collateral which qualifies for priority over a conflicting security interest under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9-327"><span class="s2073686DefaultParagraphFont">57A-9-327</span></a><span xml:space="preserve" class="s2073686DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9-328"><span class="s2073686DefaultParagraphFont">57A-9-328</span></a><span xml:space="preserve" class="s2073686DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9-329"><span class="s2073686DefaultParagraphFont">57A-9-329</span></a><span xml:space="preserve" class="s2073686DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9-330"><span class="s2073686DefaultParagraphFont">57A-9-330</span></a><span xml:space="preserve" class="s2073686DefaultParagraphFont">, or </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9-331"><span class="s2073686DefaultParagraphFont">57A-9-331</span></a><span xml:space="preserve" class="s2073686DefaultParagraphFont"> also has priority over a conflicting security interest in:</span></p><p dir="ltr" class="s2073686Normal-000001"><span class="s2073686DefaultParagraphFont">(1)    Any supporting obligation for the collateral; and</span></p><p dir="ltr" class="s2073686Normal-000001"><span class="s2073686DefaultParagraphFont">(2)    Proceeds of the collateral if:</span></p><p dir="ltr" class="s2073686Normal-000003"><span class="s2073686DefaultParagraphFont">(A)    The security interest in proceeds is perfected;</span></p><p dir="ltr" class="s2073686Normal-000003"><span class="s2073686DefaultParagraphFont">(B)    The proceeds are cash proceeds or of the same type as the collateral; and</span></p><p dir="ltr" class="s2073686Normal-000003"><span class="s2073686DefaultParagraphFont">(C)    In the case of proceeds that are proceeds of proceeds, all intervening proceeds are cash proceeds, proceeds of the same type as the collateral, or an account relating to the collateral.</span></p><p dir="ltr" class="s2073686Normal-000002"><span class="s2073686DefaultParagraphFont">(d) Subject to subsection (e) and except as otherwise provided in subsection (f), if a security interest in chattel paper, deposit accounts, negotiable documents, instruments, investment property, or letter</span><span class="s2073686DefaultParagraphFont-000004">-</span><span class="s2073686DefaultParagraphFont">of</span><span class="s2073686DefaultParagraphFont-000004">-</span><span class="s2073686DefaultParagraphFont">credit rights is perfected by a method other than filing, conflicting perfected security interests in proceeds of the collateral rank according to priority in time of filing.</span></p><p dir="ltr" class="s2073686Normal-000002"><span class="s2073686DefaultParagraphFont">(e) Subsection (d) applies only if the proceeds of the collateral are not cash proceeds, chattel paper, negotiable documents, instruments, investment property, or letter</span><span class="s2073686DefaultParagraphFont-000004">-</span><span class="s2073686DefaultParagraphFont">of</span><span class="s2073686DefaultParagraphFont-000004">-</span><span class="s2073686DefaultParagraphFont">credit rights.</span></p><p dir="ltr" class="s2073686Normal-000002"><span class="s2073686DefaultParagraphFont">(f) Subsections (a) through (e) are subject to:</span></p><p dir="ltr" class="s2073686Normal-000001"><span class="s2073686DefaultParagraphFont">(1)    Subsection (g) and the other provisions of this part;</span></p><p dir="ltr" class="s2073686Normal-000001"><span xml:space="preserve" class="s2073686DefaultParagraphFont">(2)    Section </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-4-210"><span class="s2073686DefaultParagraphFont">57A-4-210</span></a><span xml:space="preserve" class="s2073686DefaultParagraphFont"> with respect to a security interest of a collecting bank;</span></p><p dir="ltr" class="s2073686Normal-000001"><span xml:space="preserve" class="s2073686DefaultParagraphFont">(3)    Section </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-5-118"><span class="s2073686DefaultParagraphFont">57A-5-118</span></a><span xml:space="preserve" class="s2073686DefaultParagraphFont"> with respect to a security interest of an issuer or nominated person; and</span></p><p dir="ltr" class="s2073686Normal-000001"><span xml:space="preserve" class="s2073686DefaultParagraphFont">(4)    Section </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9-110"><span class="s2073686DefaultParagraphFont">57A-9-110</span></a><span xml:space="preserve" class="s2073686DefaultParagraphFont"> with respect to a security interest arising under chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2"><span class="s2073686DefaultParagraphFont">57A-2</span></a><span xml:space="preserve" class="s2073686DefaultParagraphFont"> or </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A"><span class="s2073686DefaultParagraphFont">57A-2A</span></a><span class="s2073686DefaultParagraphFont">.</span></p><p dir="ltr" class="s2073686Normal-000002"><span class="s2073686DefaultParagraphFont">(g) A perfected agricultural lien on collateral has priority over a conflicting security interest in or agricultural lien on the same collateral if the statute creating the agricultural lien so provides.</span></p><p dir="ltr" class="s2073686Normal"><span xml:space="preserve" class="s2073686000005"> </span></p><p dir="ltr" class="s2073686Normal"><span class="s2073686SCL">Source:</span><span xml:space="preserve" class="s2073686SCL-000006"> SL 2000, ch 231.</span></p></div></body></html>