South Dakota Codified Laws 43-42-4. Accounts receivable–Transfer by assignment in good faith
Every written assignment made in good faith, whether in the nature of a sale, pledge, or other transfer, of an account receivable or of an amount due or to become due on an open account or on a contract (all hereinafter called “account”), with or without the giving of notice of such assignment to the debtor, shall be valid, legal, and complete at the time of the making of such assignment, and shall be deemed to have been fully perfected at that time. Thereafter, no bona fide purchaser from the assignor, no creditor of any kind of the assignor, and no other assignee or transferee of the assignor, in any event shall have, or be deemed to have acquired, any right in the account so transferred or in the proceeds thereof or in any obligation substituted therefor, superior to the rights therein of the assignee.
Terms Used In South Dakota Codified Laws 43-42-4
- Contract: A legal written agreement that becomes binding when signed.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- written: include typewriting and typewritten, printing and printed, except in the case of signatures, and where the words are used by way of contrast to typewriting and printing. See South Dakota Codified Laws 2-14-2
Source: SDC 1939, § 51.0803 as added by SL 1945, ch 213.