| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
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| LAWDOG™ South Dakota Repossession |
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| Notation of Liens and County Register of
Deeds The holder of a mortgage, trust receipt, conditional sales contract,
mechanic's lien, or similar instrument, upon presentation of the certificate of title to
office of titled owner's county register of deeds, together with proper fee, may have a
notation of lien made on certificate of title. The county register of deeds enters
notation and date over the signature of officer and the seal of office. The register of
deeds on that day notifies the department, which notes lien on state computer system, if
county register of deeds has not done so. 32-3-38
South Dakota Codified Laws |
| Validity of Liens and Title and Origin
Documents A security interest, mechanic's lien, or similar instrument
other than a financing statement covering a motor vehicle, trailer, or semitrailer if
notation of same has been made by the seller, buyer, owner, holder of the instrument, or
an agent of the secretary on manufacturer's statement or certificate of origin, or in case
of certificate of title, if a notation of same has been made by the secretary, an agent of
secretary, county register of deeds, or a county treasurer, on the face thereof, or if
notation of same has been made by the seller, buyer, owner, holder of the instrument, or
agent of the secretary on the reverse thereof, shall be valid against the creditors of the
debtor, whether armed with process or not, and subsequent purchasers and other lien
holders or claimants, but otherwise is not valid against them. 32-3-41
South Dakota Codified Laws |
| Certificate of Origin Pending Title and
Priority of Liens A manufacturer's certificate of origin is deemed to be
in possession of lien holder, while being transmitted to the secretary, and until issuance
of a certificate of title by the secretary showing lien. All contracts, liens, mortgages
and encumbrances, noted on a certificate of title, take priority according to order of
time in which the liens were noted. See Section 32-3-35
South Dakota Codified Laws |
| See Title 32
Motor Vehicle |
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| Possession After Default
Unless otherwise agreed a secured party has on default the right to take possession of the
collateral. In taking possession a secured party may proceed without judicial process only
if this can be done without breach of the peace. If not, a legal action may proceed.
See 57A-9-503
South Dakota Codified Laws |
| Right to Redeem At any time
before secured party has disposed of collateral or entered into contract for disposition
by sale under Section 57A-9-504, or before discharge under Section 57A-9-505, debtor or
any other secured party may, unless otherwise agreed in writing after default, redeem the
collateral by tendering fulfillment of all obligations secured by collateral, expenses
reasonably incurred by secured party in retaking, holding and preparing collateral for
sale, arranging for sale, and to extent provided in agreement and not prohibited by law,
reasonable attorneys' fees and legal expenses. See Section 57A-9-506
South Dakota Codified Laws |
| Compulsory Sale If debtor
has paid sixty percent of the cash price in case of a purchase money security interest in
consumer goods or sixty percent of the loan in case of another security interest in
consumer goods, and has not signed after default a statement renouncing or modifying
rights, secured party who has taken possession of collateral must dispose of it by sale
under Section 57A-9-504. If secured party fails to do so within ninety days after
possession, debtor may recover damages on secured party's liability. See Section 57A-9-505
South Dakota Codified Laws |
| Acceptance as Discharge In
any other case not involving 60% consumer goods rule above, secured party in possession
may, after default, propose to retain the collateral in satisfaction of the obligation.
Written notice of the proposal must be sent to debtor, if debtor has
not signed, after default, a statement renouncing or modifying rights. In case of consumer
goods no other notice need be given. In other cases, notice must be sent to any other
secured party from whom secured party has received. before notice to debtor or
renunciation of rights, written notice of claim of interest in collateral. If secured
party receives objection in writing, from a person entitled to receive notice, within
twenty-one days after notice sent, secured party must dispose of collateral by sale under
section 57A-9-504. If no such written objection is received, secured party may retain
collateral in satisfaction of obligation. See Section 57A-9-505
South Dakota Codified Laws |
| Sale and Application of Proceeds
A secured party after default may sell, lease or otherwise dispose of collateral in its
then condition or following any commercially reasonable preparation or processing. Any
sale of goods is subject to the U.C.C. chapter on sales (chapter 57A-2). The proceeds of
disposition are applied in the order following to reasonable expenses of retaking,
holding, preparing for sale or lease, selling, leasing and the like and, to extent
provided for in agreement and not prohibited by law, reasonable attorneys' fees and legal
expenses incurred. Proceeds would next be applied to satisfaction of debt secured by
security interest under which the sale is made. See Section 57A-9-504
South Dakota Codified Laws |
| Subordinate Lien If
proceeds remain, they would next apply to satisfaction of debt secured by any subordinate
security interest in the collateral, if written notification of demand is received before
distribution of proceeds completed. If requested by secured party, holder of subordinate
security interest must seasonably furnish reasonable proof of interest, and unless he does
so, secured party need not comply with demand. Section 57A-9-504
South Dakota Codified Laws |
| Accounting and Deficiency
If the security interest secures debt, secured party must account to debtor for any
surplus, and, unless otherwise agreed, debtor is liable for any deficiency. See Section 57A-9-504
South Dakota Codified Laws |
| Public or Private Sale After Reasonable
Notice Disposition of collateral may be by public or private proceedings
and may be at any time and place, and on any terms, but every aspect of disposition
including method, manner, time, place and terms must be commercially reasonable. Unless
collateral is perishable, reasonable notification of time and place of any public sale, or
time after which any private sale is to be made, must be sent by secured party to debtor
if debtor has not signed, after default, a statement renouncing or modifying right to
notice of sale. In case of consumer goods no other notification need be sent. See Section 57A-9-504
South Dakota Codified Laws |
| Subordinate Liens In other
cases notification shall be sent to any other secured party from whom the secured party
has received, before sending notice to debtor or before renunciation of rights, written
notice of claim of interest in collateral. See Section 57A-9-504
South Dakota Codified Laws |
| Guarantor and Others Liable
A person liable to a secured party under a guaranty, endorsement, or repurchase
agreement, and who receives a transfer of collateral from secured party, or is subrogated
to his rights, thereafter has the rights and duties of secured party. Such a
transfer is not considered a sale of the collateral under this chapter. See Section 57A-9-504
South Dakota Codified Laws |
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| Transfer By Operation of Law
If ownership of a motor vehicle, trailer or semitrailer passes by operation of law,
judicial sale, repossession or proceedings, or other manner, owner may, upon furnishing
satisfactory proof to the department of ownership, procure a certificate of title to the
motor vehicle, trailer or semitrailer regardless of whether a certificate of title has
ever been issued. The burden of such satisfactory proof is on applicant. See Section 32-3-6
South Dakota Codified Laws |
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