SDCL § 32-3-70: Electronic lien filing system--Paper title--Liability for noting or canceling lien in error.

Notwithstanding any other provision of this title, the department may provide for an electronic lien filing system. If a lien has been noted electronically in the electronic lien filing system, no paper title may be issued to the owner of record or the lienholder. A paper title shall be issued under the following circumstances:

(1) The lien has been satisfied and the owner requests a title;

(2) The owner is relocating to another state and the lienholder authorizes the issuance of a title with the lien noted;

(3) The ownership listed on the title is being changed and the lienholder authorizes the issuance of a title with the lien noted; or

(4) The titled vehicle has been determined to be a salvage vehicle pursuant to § 32-3-51.19.

A lien shall be noted or cancelled electronically if an electronic certificate of title exists and the lienholder is participating in the electronic lien filing system. A lien noted electronically is considered perfected as if a paper title was issued and a lien had been noted on the title pursuant to § 32-3-29 or 32-3-41. A lienholder is liable for noting or canceling a lien in error.