South Dakota Statutes

§ 57A-9-406 — Discharge of account debtor--Notification of assignment--Identification and proof of assignment--Restrictions on assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective.

South Dakota·Title 57A UNIFORM COMMERCIAL CODE·Ch. 57A-6 SECURED TRANSACTIONS
(a)Subject to subsections (b) through (i) and (l), an account debtor on an account, chattel paper, or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, signed by the assignor or the assignee, that the amount due or to become due has been assigned and that payment is to be made to the assignee. After receipt of the notification, the account debtor may discharge its obligation by paying the assignee and may not discharge the obligation by paying the assignor.
(b)Subject to subsections (h) and (l), notification is ineffective under subsection (a):
(1)If it does not reasonably identify the rights assigned;
(2)To the extent that an agreement between an account debtor and a seller of a payment inta

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South Dakota § 57A-9-406 (Discharge of account debtor--Notification of assignment--Identification and proof of assignment--Restrictions on assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Fin-Ag, Inc. v. Feldman Bros.
2007 SD 105 (South Dakota Supreme Court, 2007)
19 case citations
LBM, Inc. v. Rushmore State Bank
1996 SD 12 (South Dakota Supreme Court, 1996)
6 case citations

Legislative History

SL 2000, ch 231; SL 2012, ch 238, § 8, eff. July 1, 2013; SL 2024, ch 198, § 76.

Nearby Sections

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