South Dakota Codified Laws
Chapter 09 - Secured Transactions
Section 57A-9-109 - Application of chapter.

57A-9-109. Application of chapter.
(a) Except as otherwise provided in subsections (c) and (d), this chapter applies to:
(1)A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;
(2)An agricultural lien;
(3)A sale of accounts, chattel paper, payment intangibles, or promissory notes;
(4)A consignment;
(5)A security interest arising under §57A-2-401, 57A-2-505, 57A-2-711(3), or 57A-2A-508(5), as provided in §57A-9-110; and
(6)A security interest arising under §57A-4-210 or 57A-5-118.
(b) The application of this chapter to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this chapter does not apply.
(c) This chapter does not apply to the extent that:
(1)A statute, regulation, or treaty of the United States preempts this chapter;
(2)Another statute of this State governs the creation of a security interest created by this State or a governmental unit of this State;
(3)A statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or
(4)The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under §57A-5-114.
(d) This chapter does not apply to:
(1)A landlord's lien, other than an agricultural lien;
(2)A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but §57A-9-333 applies with respect to priority of the lien;
(3)An assignment of a claim for wages, salary, or other compensation of an employee;
(4)A sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;
(5)An assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;
(6)An assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;
(7)An assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;
(8)A transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but §§57A-9-315 and 57A-9-322 apply with respect to proceeds and priorities in proceeds;
(9)An assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;
(10)A right of recoupment or set-off, but:
(A)Section 57A-9-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and
(B)Section 57A-9-404 applies with respect to defenses or claims of an account debtor;
(11)The creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:
(A)Liens on real property in §§57A-9-203 and 57A-9-308;
(B)Fixtures in §57A-9-334;



(C)Fixture filings in §§57A-9-501, 57A-9-502, 57A-9-512, 57A-9-516, and 57A-9-519; and
(D)Security agreements covering personal and real property in §57A-9-604;
(12)An assignment of a claim arising in tort, other than a commercial tort claim, but §§57A-9-315 and 57A-9-322 apply with respect to proceeds and priorities in proceeds;
(13)A transfer or security interest made or created by a state or any governmental unit;
(14)An assignment of a deposit account in a consumer transaction, but §§57A-9-315 and 57A-9-322 apply with respect to proceeds and priorities in proceeds;
(15)The pledging or segregating of collateral for public deposits as authorized by §51A-10-9, chapter 52-5, and chapter 4-6A;
(16)An assignment of a claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. §104(a)(1) or (2), as amended to January 1, 2001; or
(17)An assignment of a claim or right to receive benefits under a special needs trust as described in 42 U.S.C. §1396p(d)(4), as amended to January 1, 2001.

Source: SL 2000, ch 231; SL 2001, ch 261, §2.

Structure South Dakota Codified Laws