SDCL § 53-12-40: "Transferable record" defined.

For purposes of this chapter, the term, transferable record, means an electronic record that:

(1) Would be a note under Article 3 of the Uniform Commercial Code or a document under Article 7 of the Uniform Commercial Code if the electronic record were in writing; and

(2) The issuer of the electronic record expressly has agreed is a transferable record.