§ 44-8-7 — Real estate mortgages--Prohibited provisions--Exception--Federal land bank mortgages.

The following contracts between a mortgagor and mortgagee of real estate are against public policy and unenforceable: (1) In case of a mortgage upon the homestead of the mortgagor or adjacent property used in connection therewith and for the same purpose, any provision in such mortgage by which the mortgagor pledges, assigns, transfers, or agrees so to do, to the mortgagee or for his benefit, as payment of, or security for, the payment of any debt secured by such mortgage, either the right to the possession of the mortgaged premises prior to the expiration of the period of redemption or all or any part of the rental, crops, or proceeds to be received therefrom or produced thereon prior to the expiration of the period of redemption; (2) Any agreement whereby the mortgagor agrees to pay the taxes of the mortgagee upon or account of the mortgage debt; (3) Any agreement whereby the mortgagor waives any part of the exemptions of personal property allowed to him by law; (4) Any agreement whereby the mortgagor consents to the appointment of a receiver to take possession of the mortgaged premises during foreclosure or the period of redemption. In foreclosure by action the court may appoint a receiver if authorized by law. The provisions of this section shall not apply to, affect, or restrict any mortgage executed, pursuant to the terms of the South Dakota One Hundred Eighty Day Redemption Mortgage Act, to the government of the United States, the federal land bank, the federal land bank commissioner, or any agency or instrumentality of the United States government whose obligations are guaranteed in whole or in part by the United States government.

Legislative History

SL 1935, ch 149; SDC 1939, § 39.0303; SL 1949, ch 143; SL 1977, ch 187, § 30.