<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 62-5-15 - Perfected security interest in deposit--Release of security interest. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2078280Normal { 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.s2078280SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2078280CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2078280Normal-000000 { 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.s2078280DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2078280Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s2078280Normal-000002 { text-indent: 0.25in; 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.s2078280000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2078280SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2078280SCL-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="s2078280Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=62-5-15"><span class="s2078280SENU">62-5-15</span></a><span xml:space="preserve" class="s2078280SENU">. </span><span class="s2078280CL">Perfected security interest in deposit--Release of security interest.</span></p><p dir="ltr" class="s2078280Normal-000000"><span xml:space="preserve" class="s2078280DefaultParagraphFont">Upon the secretary sending a request to renew, request to post, or request to increase a security deposit to the maximum amount permitted by §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=62-5-10"><span class="s2078280DefaultParagraphFont">62-5-10</span></a><span xml:space="preserve" class="s2078280DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=62-5-16"><span class="s2078280DefaultParagraphFont">62-5-16</span></a><span class="s2078280DefaultParagraphFont">, inclusive, a perfected security interest is created in the private self-insured's assets in favor of the secretary to the extent of any then unsecured portion of the self-insured's incurred liabilities for workers' compensation claims. That perfected security interest is transferred to any cash or securities thereafter posted by the private self-insured with the state treasurer or other financial institution and is released only upon:</span></p><p dir="ltr" class="s2078280Normal-000001"><span class="s2078280DefaultParagraphFont">(1)    The acceptance by the secretary of a surety bond, certificate of deposit, or irrevocable letter of credit for the full amount of the incurred liabilities for the payment of compensation; or</span></p><p dir="ltr" class="s2078280Normal-000001"><span class="s2078280DefaultParagraphFont">(2)    The return of cash or securities by the secretary.</span></p><p dir="ltr" class="s2078280Normal-000002"><span class="s2078280DefaultParagraphFont">The private self-insured employer loses all right and title in and any right to control all assets or obligations posted or placed on deposit as security. In the event of a declaration of bankruptcy or insolvency by a court of competent jurisdiction the secretary may liquidate the deposit for application to the self-insured employer's incurred liability.</span></p><p dir="ltr" class="s2078280Normal"><span xml:space="preserve" class="s2078280000003"> </span></p><p dir="ltr" class="s2078280Normal"><span class="s2078280SCL">Source:</span><span xml:space="preserve" class="s2078280SCL-000004"> SL 1989, ch 453, § 7; SL 2017, ch 219, § 2.</span></p></div></body></html>