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S.D. Codified Laws § 57A-9-104

Control of deposit account

Known as the Uniform Commercial Code

The act spans §§ 57–57 (574 sections).

Applied in 1 court decision — leading case Consolidated Nutrition, L.C. v. IBP, Inc. (2003)

Most recently applied in Consolidated Nutrition, L.C. v. IBP, Inc. (August 2003)

Source: SL 2000, ch 231; SL 2024, ch 198, § 44.

(a) A secured party has control of a deposit account if:

(1) The secured party is the bank with which the deposit account is maintained;

(2) The debtor, secured party, and bank have agreed in a signed record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the deposit account without further consent by the debtor;

(3) The secured party becomes the bank's customer with respect to the deposit account; or

(4) Another person, other than the debtor:

(A) Has control of the deposit account and acknowledges that it has control on behalf of the secured party; or

(B) Obtains control of the deposit account after having acknowledged that it will obtain control of the deposit account on behalf of the secured party.

(b) A secured party that has satisfied subsection (a) has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.

Official source: South Dakota Legislature. Reproduced from public-domain South Dakota statutes; confirm against the official source for the current text. Not legal advice.