{"data":{"id":"us-sd/sdcl-57a-9-620","jurisdiction":"us-sd","citation":"SDCL § 57A-9-620","heading":"Acceptance of collateral in full or partial satisfaction of obligation--Compulsory disposition of collateral.","body":"(a) Except as otherwise provided in subsection (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:\n(1) The debtor consents to the acceptance under subsection (c);\n(2) The secured party does not receive, within the time set forth in subsection (d), a notification of objection to the proposal signed by:\n(A) A person to which the secured party was required to send a proposal under § 57A-9-621; or\n(B) Any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal;\n(3) If the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and\n(4) Subsection (e) does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to § 57A-9-624.\n(b) A purported or apparent acceptance of collateral under this section is ineffective unless:\n(1) The secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and\n(2) The conditions of subsection (a) are met.\n(c) For purposes of this section:\n(1) A debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default; and\n(2) A debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default or the secured party:\n(A) Sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;\n(B) In the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and\n(C) Does not receive a notification of objection signed by the debtor within twenty days after the proposal is sent.\n(d) To be effective under subsection (a)(2), a notification of objection must be received by the secured party:\n(1) In the case of a person to which the proposal was sent pursuant to § 57A-9-621, within twenty days after notification was sent to that person; and\n(2) In other cases:\n(A) Within twenty days after the last notification was sent pursuant to § 57A-9-621; or\n(B) If a notification was not sent, before the debtor consents to the acceptance under subsection (c).\n(e) A secured party that has taken possession of collateral shall dispose of the collateral pursuant to § 57A-9-610 within the time specified in subsection (f) if:\n(1) Sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or\n(2) Sixty percent of the principal amount of the obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods .\n(f) To comply with subsection (e), the secured party shall dispose of the collateral:\n(1) Within ninety days after taking possession; or\n(2) Within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and signed after default.\n(g) In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.\nSource: SL 2000, ch 231; SL 2024, ch 198, § 89.","path":["TITLE 57A. UNIFORM COMMERCIAL CODE","CHAPTER 57A-9. SECURED TRANSACTIONS"],"source_url":"https://sdlegislature.gov/Statutes/57A-9-620","current_through":"2026-08-31","vintage":"","retrieved_at":"2026-09-03T15:18:57Z","sha256":"363885d7b957f6028c2468ec4cb8e1f65b715832069d7f5e5153e0ed0351ebfe","source_id":"us-sd","stale":true,"prev":"us-sd/sdcl-57a-9-619","next":"us-sd/sdcl-57a-9-621"},"notice":"GroundRules: Original legal text. Not legal advice."}