{"data":{"id":"us-sd/sdcl-57a-9-323","jurisdiction":"us-sd","citation":"SDCL § 57A-9-323","heading":"Future advances.","body":"(a) Except as otherwise provided in subsection (c), for purposes of determining the priority of a perfected security interest under § 57A-9-322(a)(1), perfection of the security interest dates from the time an advance is made to the extent that the security interest secures an advance that:\n(1) Is made while the security interest is perfected only:\n(A) Under § 57A-9-309 when it attaches; or\n(B) Temporarily under § 57A-9-312(e), (f), or (g); and\n(2) Is not made pursuant to a commitment entered into before or while the security interest is perfected by a method other than under § 57A-9-309 or 57A-9-312(e), (f), or (g).\n(b) Except as otherwise provided in subsection (c), a security interest is subordinate to the rights of a person that becomes a lien creditor to the extent that the security interest secures an advance made more than forty-five days after the person becomes a lien creditor unless the advance is made:\n(1) Without knowledge of the lien; or\n(2) Pursuant to a commitment entered into without knowledge of the lien.\n(c) Subsections (a) and (b) do not apply to a security interest held by a secured party that is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor.\n(d) Except as otherwise provided in subsection (e), a buyer of goods takes free of a security interest to the extent that it secures advances made after the earlier of:\n(1) The time the secured party acquires knowledge of the buyer's purchase; or\n(2) Forty-five days after the purchase.\n(e) Subsection (d) does not apply if the advance is made pursuant to a commitment entered into without knowledge of the buyer's purchase and before the expiration of the forty-five-day period.\n(f) Except as otherwise provided in subsection (g), a lessee of goods takes the leasehold interest free of a security interest to the extent that it secures advances made after the earlier of:\n(1) The time the secured party acquires knowledge of the lease; or\n(2) Forty-five days after the lease contract becomes enforceable.\n(g) Subsection (f) does not apply if the advance is made pursuant to a commitment entered into without knowledge of the lease and before the expiration of the forty-five-day period.\nSource: SL 2000, ch 231; SL 2024, ch 198, § 67.","path":["TITLE 57A. UNIFORM COMMERCIAL CODE","CHAPTER 57A-9. SECURED TRANSACTIONS"],"source_url":"https://sdlegislature.gov/Statutes/57A-9-323","current_through":"2026-08-31","vintage":"","retrieved_at":"2026-09-03T15:18:57Z","sha256":"f8cb78bbb52affbc587e40a4f595ee2a2d2361071605fd9ac91f0c1890aa7982","source_id":"us-sd","stale":true,"prev":"us-sd/sdcl-57a-9-322","next":"us-sd/sdcl-57a-9-324"},"notice":"GroundRules: Original legal text. Not legal advice."}