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S.D. Codified Laws § 57A-9-318

Effect of sale of collateral on rights of debtor

Known as the Uniform Commercial Code

The act spans §§ 57A-1-101 to 57A-9-809 (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.

(a) A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain a legal or equitable interest in the collateral sold.

(b) For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper from, a debtor that has sold an account or chattel paper, while the buyer's security interest is unperfected, the debtor is deemed to have rights and title to the account or chattel paper identical to those the debtor sold.

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