A South Dakota Financing Statement is a legal document that provides public notice of a security interest in personal property. It is a crucial component of securing loans and is governed by the Uniform Commercial Code (UCC) adopted in South Dakota. The primary purpose of a South Dakota Financing Statement is to inform potential creditors and other interested parties about a secured party's claim to certain collateral. It establishes a priority for the secured party's interest in case of default or bankruptcy, ensuring they receive repayment or asset rights. Types of South Dakota Financing Statements: 1. UCC-1 Financing Statement: This is the most common type of financing statement used in South Dakota. It is filed to provide notice of a security interest in personal property, such as inventory, equipment, vehicles, or accounts receivable. The UCC-1 Financing Statement typically includes information on the debtor, secured party, and detailed descriptions of the collateral. 2. UCC-3 Financing Statement Amendment: This type of financing statement is filed to update or amend the information provided in the original UCC-1 Financing Statement. Amendments may include changes in collateral, debtor or secured party information, or terminations of the security interest. 3. UCC-5 Information Statement: An information statement is filed to provide additional information or record facts about a specific transaction or interest. It does not establish or modify a security interest but serves as supplementary information for interested parties. Important keywords relating to South Dakota Financing Statement: — Security interest: Refers to the interest or right a creditor possesses in collateral, securing payment or performance of an obligation. — Collateral: The property or assets offered by the debtor as security for the loan or credit. — Secured party: The individual or entity (such as a lender or creditor) holding the security interest on the collateral. — Debtor: The individual or entity who owes payment or performance on an obligation, typically the person receiving the loan or credit. — UCC: The Uniform Commercial Code, a set of standardized laws governing commercial transactions, including secured transactions, adopted by most states, including South Dakota. — Notice: This term highlights the public aspect of a financing statement. It ensures that other creditors or interested parties searching public records are aware of the secured party's claim and can act accordingly.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.