<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-9-607 - Collection and enforcement by secured party. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073760Normal { 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.s2073760SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073760CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073760Normal-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.s2073760DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; 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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="s2073760Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9-607"><span class="s2073760SENU">57A-9-607</span></a><span xml:space="preserve" class="s2073760SENU">. </span><span class="s2073760CL">Collection and enforcement by secured party.</span></p><p dir="ltr" class="s2073760Normal-000000"><span class="s2073760DefaultParagraphFont">(a) If so agreed, and in any event after default, a secured party:</span></p><p dir="ltr" class="s2073760Normal-000001"><span class="s2073760DefaultParagraphFont">(1)    May notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;</span></p><p dir="ltr" class="s2073760Normal-000001"><span xml:space="preserve" class="s2073760DefaultParagraphFont">(2)    May take any proceeds to which the secured party is entitled under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9-315"><span class="s2073760DefaultParagraphFont">57A-9-315</span></a><span class="s2073760DefaultParagraphFont">;</span></p><p dir="ltr" class="s2073760Normal-000001"><span class="s2073760DefaultParagraphFont">(3)    May enforce the obligations of an account debtor or other person obligated on collateral and exercise the rights of the debtor with respect to the obligation of the account debtor or other person obligated on collateral to make payment or otherwise render performance to the debtor, and with respect to any property that secures the obligations of the account debtor or other person obligated on the collateral;</span></p><p dir="ltr" class="s2073760Normal-000001"><span class="s2073760DefaultParagraphFont">(4)    If it holds a security interest in a deposit account perfected by control under § 57A-9-104(a)(1), may apply the balance of the deposit account to the obligation secured by the deposit account; and</span></p><p dir="ltr" class="s2073760Normal-000001"><span class="s2073760DefaultParagraphFont">(5)    If it holds a security interest in a deposit account perfected by control under § 57A-9-104(a)(2) or (3), may instruct the bank to pay the balance of the deposit account to or for the benefit of the secured party.</span></p><p dir="ltr" class="s2073760Normal-000002"><span class="s2073760DefaultParagraphFont">(b) If necessary to enable a secured party to exercise under subsection (a)(3) the right of a debtor to enforce a mortgage nonjudicially, the secured party may record in the office in which a record of the mortgage is recorded:</span></p><p dir="ltr" class="s2073760Normal-000001"><span class="s2073760DefaultParagraphFont">(1)    A copy of the security agreement that creates or provides for a security interest in the obligation secured by the mortgage; and</span></p><p dir="ltr" class="s2073760Normal-000001"><span class="s2073760DefaultParagraphFont">(2)    The secured party's sworn affidavit in recordable form stating that:</span></p><p dir="ltr" class="s2073760Normal-000003"><span class="s2073760DefaultParagraphFont">(A)    A default has occurred with respect to the obligation secured by the mortgage; and</span></p><p dir="ltr" class="s2073760Normal-000003"><span class="s2073760DefaultParagraphFont">(B)    The secured party is entitled to enforce the mortgage nonjudicially.</span></p><p dir="ltr" class="s2073760Normal-000002"><span class="s2073760DefaultParagraphFont">(c) A secured party shall proceed in a commercially reasonable manner if the secured party:</span></p><p dir="ltr" class="s2073760Normal-000001"><span class="s2073760DefaultParagraphFont">(1)    Undertakes to collect from or enforce an obligation of an account debtor or other person obligated on collateral; and</span></p><p dir="ltr" class="s2073760Normal-000001"><span class="s2073760DefaultParagraphFont">(2)    Is entitled to charge back uncollected collateral or otherwise to full or limited recourse against the debtor or a secondary obligor.</span></p><p dir="ltr" class="s2073760Normal-000002"><span class="s2073760DefaultParagraphFont">(d) A secured party may deduct from the collections made pursuant to subsection (c) reasonable expenses of collection and enforcement, including reasonable attorney's fees and legal expenses incurred by the secured party.</span></p><p dir="ltr" class="s2073760Normal-000002"><span class="s2073760DefaultParagraphFont">(e) This section does not determine whether an account debtor, bank, or other person obligated on collateral owes a duty to a secured party.</span></p><p dir="ltr" class="s2073760Normal"><span xml:space="preserve" class="s2073760000004"> </span></p><p dir="ltr" class="s2073760Normal"><span class="s2073760SCL">Source:</span><span xml:space="preserve" class="s2073760SCL-000005"> SL 2000, ch 231; SL 2012, ch 238, § 17, eff. July 1, 2013.</span></p></div></body></html>