<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-9-610 - Disposition of collateral after default--Treatment of warranties. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073765Normal { 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.s2073765SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073765CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073765Normal-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.s2073765DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073765Normal-000001 { 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.s2073765Normal-000002 { 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; } span.s2073765000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073765SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073765SCL-000004 { 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="s2073765Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9-610"><span class="s2073765SENU">57A-9-610</span></a><span xml:space="preserve" class="s2073765SENU">. </span><span class="s2073765CL">Disposition of collateral after default--Treatment of warranties.</span></p><p dir="ltr" class="s2073765Normal-000000"><span class="s2073765DefaultParagraphFont">(a) After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing .</span></p><p dir="ltr" class="s2073765Normal-000001"><span class="s2073765DefaultParagraphFont">(b) Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by one or more contracts, as a unit or in parcels, and at any time and place and on any terms.</span></p><p dir="ltr" class="s2073765Normal-000001"><span class="s2073765DefaultParagraphFont">(c) A secured party may purchase collateral:</span></p><p dir="ltr" class="s2073765Normal-000002"><span class="s2073765DefaultParagraphFont">(1)    At a public disposition; or</span></p><p dir="ltr" class="s2073765Normal-000002"><span class="s2073765DefaultParagraphFont">(2)    At a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.</span></p><p dir="ltr" class="s2073765Normal-000001"><span class="s2073765DefaultParagraphFont">(d) A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like which by operation of law accompany a voluntary disposition of property of the kind subject to the contract.</span></p><p dir="ltr" class="s2073765Normal-000001"><span class="s2073765DefaultParagraphFont">(e) A secured party may disclaim or modify warranties under subsection (d):</span></p><p dir="ltr" class="s2073765Normal-000002"><span class="s2073765DefaultParagraphFont">(1)    In a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition; or</span></p><p dir="ltr" class="s2073765Normal-000002"><span class="s2073765DefaultParagraphFont">(2)    By communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.</span></p><p dir="ltr" class="s2073765Normal-000001"><span class="s2073765DefaultParagraphFont">(f) A record is sufficient to disclaim warranties under subsection (e) if it indicates "There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition" or uses words of similar import.</span></p><p dir="ltr" class="s2073765Normal"><span xml:space="preserve" class="s2073765000003"> </span></p><p dir="ltr" class="s2073765Normal"><span class="s2073765SCL">Source:</span><span xml:space="preserve" class="s2073765SCL-000004"> SL 2000, ch 231.</span></p></div></body></html>