SDCL § 32-3-83: Transfer on death--Ineligible if encumbered--Certificate not issued.

An owner of property may not designate a beneficiary, pursuant to § 32-3-80, if the property is subject to any lien or other encumbrance.

The department may not issue a certificate of title reflecting the transfer of ownership, pursuant to § 32-3-81, if the property is subject to any lien or other encumbrance.