ENTITLED, An Act to revise provisions regulating the perfection of security interest liens filed on-line.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 32-3-41 be amended to read as follows:
32-3-41. A security interest, mechanic's lien, or similar instrument other than a financing
statement covering a motor vehicle, trailer, or semitrailer, or any vehicle required to be titled under
the provisions of this chapter, if notation of same has been made by the seller, buyer, owner, holder
of the instrument, or an agent of the secretary on the manufacturer's statement of origin or the
manufacturer's certificate of origin, or in the case of the certificate of title, if a notation of same has
been made by the secretary, an agent of the secretary, or a county treasurer on the face thereof or if
notation of same has been made by the seller, buyer, owner, holder of the instrument, or agent of the
secretary on the reverse thereof, is valid against the creditors of the debtor, whether armed with
process or not, and subsequent purchasers and other lien holders or claimants, but otherwise is not
valid against them. A lien is perfected if it has been noted on the title as provided by law and entered
into the electronic title file system.
Section 2. That § 32-3-70 be amended to read as follows:
32-3-70. Notwithstanding any other provision of this title, the department may provide for an
electronic certificate of title. If the application for title or the title has a lien noted, no paper title may
be issued to the owner of record or the lienholder. A paper title shall be issued under the following
(1) The lien has been satisfied and the owner requests a title; or
(2) The owner is relocating to another state and the lienholder authorizes the issuance of a
title with the lien noted.
A lien shall be noted or cancelled on-line if an electronic certificate of title exists and the
lienholder has access to the electronic title file system pursuant to § 32-3-38.1. A lien noted on-line
is considered perfected as if a paper title were issued and a lien noted on it pursuant to § 32-3-41.
A lienholder is liable for noting or canceling a lien in error.
An Act to revise provisions regulating the perfection of security interest liens filed on-line.
I certify that the attached Act
originated in the
SENATE as Bill No. 64
Secretary of the Senate
President of the Senate
Secretary of the Senate
Speaker of the House
Senate Bill No. 64
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
STATE OF SOUTH DAKOTA,
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
Secretary of State
Asst. Secretary of State