§ 57A-9-314 Perfection by control of collateral.

SD Codified L § 57A-9-314 (2019) (N/A)

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57A-9-314. Perfection by control of collateral. (a) A security interest in investment property, deposit accounts, letter-of-credit rights, electronic chattel paper, or electronic documents may be perfected by control of the collateral under § 57A-9-104, 57A-9-105, 57A-9-106, 57A-9-107, or 57A-7-106.

(b) A security interest in deposit accounts, electronic chattel paper, letter-of-credit rights, or electronic documents is perfected by control under § 57A-9-104, 57A-9-105, 57A-9-107, or 57A-7-206 when the secured party obtains control and remains perfected by control only while the secured party retains control.

(c) A security interest in investment property is perfected by control under § 57A-9-106 from the time the secured party obtains control and remains perfected by control until:

(1) The secured party does not have control; and

(2) One of the following occurs:

(A) If the collateral is a certificated security, the debtor has or acquires possession of the security certificate;

(B) If the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner; or

(C) If the collateral is a security entitlement, the debtor is or becomes the entitlement holder.Source: SL 2000, ch 231; SL 2009, ch 254, § 833.

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§ 57A-9-313 Perfection by taking possession of collateral or by delivery.

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§ 57A-9-315 Effect of disposition of collateral on security interest or agricultural lien--Interest in proceeds.