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S.D. Codified Laws § 57A-9-325

Subordination of security interest created by debtor to security interest created by another person

Known as the Uniform Commercial Code

The act spans §§ 57A-1-101 to 57A-9-809 (574 sections).

Source: SL 2000, ch 231.

(a) Except as otherwise provided in subsection (b), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:

(1) The debtor acquired the collateral subject to the security interest created by the other person;

(2) The security interest created by the other person was perfected when the debtor acquired the collateral; and

(3) There is no period thereafter when the security interest is unperfected.

(b) Subsection (a) subordinates a security interest only if the security interest:

(1) Otherwise would have priority solely under § 57A-9-322(a) or 57A-9-324; or

(2) Arose solely under § 57A-2-711(3) or 57A-2A-508(5).

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