{"data":{"id":"us-sd/sdcl-57a-9-205","jurisdiction":"us-sd","citation":"SDCL § 57A-9-205","heading":"Effect of debtor's right to use or dispose of collateral--Requirement of possession.","body":"(a) A security interest is not invalid or fraudulent against creditors solely because:\n(1) The debtor has the right or ability to:\n(A) Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;\n(B) Collect, compromise, enforce, or otherwise deal with collateral;\n(C) Accept the return of collateral or make repossessions; or\n(D) Use, commingle, or dispose of proceeds; or\n(2) The secured party fails to require the debtor to account for proceeds or replace collateral.\n(b) This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.\nSource: SL 2000, ch 231.","path":["TITLE 57A. UNIFORM COMMERCIAL CODE","CHAPTER 57A-9. SECURED TRANSACTIONS"],"source_url":"https://sdlegislature.gov/Statutes/57A-9-205","current_through":"2026-08-31","vintage":"","retrieved_at":"2026-09-03T15:18:57Z","sha256":"fd95d8d058fdaf080ad1a7e8e892cb38d5e822c9c0363a1d42537bb4cf28c79b","source_id":"us-sd","stale":true,"prev":"us-sd/sdcl-57a-9-204.1","next":"us-sd/sdcl-57a-9-206"},"notice":"GroundRules: Original legal text. Not legal advice."}